Borut Rusjan

The effect of replenishment policies on the bullwhip effect : a transfer function approach

An important phenomenon in supply chain management, known as the bullwhip effect, suggests that demand variability increases as one moves up a supply chain. This paper examines the influence of different replenishment policies on the occurrence of the bullwhip effect. The paper demonstrates that certain replenishment policies can in themselves be inducers of the bullwhip effect, while others inherently lower demand variability. The main causes of increase in variability are projections of future demand expectations, which result in over-exaggerated responses to changes in demand. We suggest that through appropriate selection and use of certain replenishment rules, the bullwhip effect can be avoided, subsequently allowing supply chain management costs to be lowered.

Capitalising on ISO 9001 benefits for strategic results

Purpose – The purpose of this paper is to identify and classify potential and verified benefits of implementing quality management systems (QMSs) according to ISO 9000 standards.Design/methodology/approach – The research is based on a comprehensive review of the relevant literature, mostly articles relating to implementation of the ISO 9000 QMS and its impact on customer satisfaction and business performance.Findings – The literature adduces possible benefits of the effective implementation of the ISO 9000 QMS and searches for related support in published empirical research. The paper classifies the major identified and empirically verified benefits into four groups in relation to the balanced scorecard (BSC) approach to categorising company objectives. It also relates the potential benefits to specific standard requirements and the pre‐conditions that must be met in the implementation stage of the ISO 9001 in order to attain these benefits.Research limitations/implications – This study of the benefits ha...

Model for manufacturing strategic decision making

Purpose – Proposes a model of strategic planning as a basis to overcome the identified shortcomings in the past empirical research. The basic assumption of the proposed model is that an appropriate strategic analysis is necessary in order to ensure appropriate strategic decisions.Design/methodology/approach – Shortcomings related to empirical research in the past were identified with the aim of discussing some possible reasons why the concept of manufacturing strategy had not been more widely adopted in practice and of developing the model of strategic planning. Based on the proposed model and relating to previous research, an empirical study of two relationships has been performed: first, between business strategic competence of an enterprise and business performance, and second, between business strategic competence and manufacturing strategic decision areas.Findings – The goals of analysis in the process of strategic planning have been explained. Empirical findings about a positive relationship between...

Contribution of the ISO 9001 internal audit to business performance

Purpose – The purpose of this paper is to investigate how the internal audit can contribute to an improvement in business performance. The goal is to develop a theoretical model of the integration of quality management systems (QMS) and an internal audit within a broader managerial system and performance reviews of the company.Design/methodology/approach – A theoretical framework was developed for assessing the internal audits contribution to the achievement of business goals. Based on the theoretically explained relationship two hypotheses related to impact of internal audits on business performance were empirically tested by a case study.Findings – A mature QMS should contribute to the achievement of a companys efficiency, which can be based on the connection of quality goals with the companys strategic goals, and in relation to this implementation of the internal audit should also be upgraded to contribute to achievement of the companys efficiency and strategic goals. Accordingly, the results of in...

Heuristic Approach to Inventory Control with Advance Capacity Information

Heuristic Approach to Inventory Control with Advance Capacity Information There is a growing trend of information sharing within modern supply chains. This trend is mainly stimulated by recent developments in information technology and the increasing awareness that accurate and timely information helps firms cope with volatile and uncertain business conditions. We model a periodic-review, single-item, capacitated stochastic inventory system, where a supply chain member has the ability to obtain advance capacity information (‘ACI’) about future supply capacity availability. ACI is used to reduce the uncertainty of future supply and thus enables the decision-maker to make better ordering decisions. We develop an easily applicable heuristic based on insights gained from an analysis of the optimal policy. In a numerical study we quantify the benefits of ACI and compare the performance of the proposed heuristic with the optimal performance. We illustrate the conditions in which the procedure is working well and comment on its practical applicability.