Richard J. Tersine

An empirical assessment of the perceived relevance and quality of POM-related journals by academicians

Abstract As in other fields, promotion and tenure decisions of academicians in POM are very closely related to their publication achievements. Such achievements are generally measured by where academicians publish rather than just what they publish. Therefore, the perceived quality or image of POM journals is important to the faculty and researchers in this field. Not surprisingly, several previous studies have attempted to rank order journals belonging to related fields such as accounting, finance, economics and management. Unfortunately, for POM journals, there exist little published data accepted and shared by all in this respect. The primary objectives of the study are to establish the perceived relevancy and quality ratings of 20 selected journals that are frequently used to disseminate POM-related research work. The results are based on a questionnaire survey of those Decision Sciences Institute members who listed POM as their primary area of interest (DSI code N). Regarding relevancy, the Journal of Operations Management is rated as the most relevant journal for POM research. Other journals that received high relevance ratings are: International Journal of Production Research, International Journal of Operations and Production Management, Journal of Manufacturing and Operations Management, Decision Sciences, and Production and Inventory Management Journal . Based on the quality ratings. Management Science, Journal of Operations Management , and Decision Sciences appear to be the “best” journals publishing POM-related research. IIE Transactions, International Journal of Production Research, Harvard Business Review, Operations Research, Naval Research Logistics , and Journal of Manufacturing and Operations Management form the group of next best journals. The results provide some evidence of an apparent incongruity between the notions of journal relevancy and journal quality, as perceived by the respondents. Some journals that received high quality ratings were found only moderately relevant to POM research. On the other hand, some journals received poor quality ratings but were rated highly for relevancy. The opinions of the associate and full professors, as well as those with better publication associations with the included journals, were found strikingly similar to those of the entire sample surveyed. Some discrepancy was evident as to what the respondents and their administrative evaluators think are the top journals. The faculty evaluators tend to consider Management Science and Operations Research as the top two journals in the POM field. Such an observation, along with other pertinent data, suggests that there still exists a tendency to equate POM with OR, and the field, to an extent, is suffering from an identity crisis.

Optimum stock levels for excess inventory items

Abstract Insufficient attention has been focused on the ubiquitous problem of excess inventory levels. This paper develops two models of different complexity for determining if stock levels are economically unjustifiable and, if so, for determining inventory retention levels. The models indicate how much stock should be retained for regular use and how much should be disposed of at a salvage price for a given item. The first model illustrates the basic logic of this approach. The net benefit realized by disposing of some quantity of excess inventory is depicted by the following equation: HOLDING NET = SALVAGE + COST - REPURCHASE - REORDER BENEFIT REVENUE SAVINGS COSTS COSTS This relationship can be depicted mathematically as a parabolic function of the time supply retained. Using conventional optimization, the following optimum solution is obtained: to= P−P s + C Q PF + Q 2R where t0 is the optimum time supply retained; P is the per-unit purchase price; Ps is the per-unit salvage price; C is the ordering cost; Q is the usual item lot size; F is the holding cost fraction; and R is the annual demand for the item. Any items in excess of the optimum time supply should be sold at the salvage price. The second model adjusts holding cost savings, repurchase costs, and reorder costs to account for present value considerations and for inflation. The following optimum relationship is derived: PFR 2k − PFtR 2 e −kt + PFQ 2 + PQ(i−k)+C(i−k) e (i−k)Q/R −1 e (i−k)t -P s R− PFR 2k =0 where i is the expected inflation rate and k is the required rate of return. Unfortunately this relationship cannot be solved analytically for t0; Newtons Method can be used to find a numerical solution. The solutions obtained by the two models are compared. Not surprisingly, the present value correction tends to reduce the economic time supply to be retained, since repurchase costs and reorder costs are incurred in the future while salvage revenue and holding cost savings are realized immediately. Additionally, both models are used to derive a relationship to describe the minimum economic salvage value, which is the minimum salvage price for which excess inventory should be sold. The simple model, which does not correct for time values, can be used by any organization with the sophistication level to use an EOQ. The present value model which includes an inflation correction is more complex, but can readily be used on a microcomputer. These models are appropriate for independent demand items. It is believed that these models can reduce inventory investment and improve bottom line performance.

Global customerization of markets has arrived

Trade liberalization, expanding global markets, and technology proliferation have increased the importance of product variety, speed, and flexibility in building and sustaining competitive advantage. For many organizations, global competition is no longer on the horizon; it has arrived. A customer base with generic needs is a fading scenario. This competitive challenge requires that organizations confront the need for a fundamental change in the way products and services are designed, produced, and delivered to customers. Customers want a total customer value package that extends beyond the basic product into bundles of experiences and outcomes. Some futurists believe that tomorrows business environment will find firms selling relationships rather than products.

Customer‐aligned inventory strategies: agility maxims

Traditionally, aggregate inventory realignment has tended to be a reactive response to crisis signals revealed by financial performance measurements. Symptoms and problems are usually confounded, while corrective actions are localized with less than adequate customer connectivity. This article links inventory requirements to customer requirements for response, quality, and their benefit‐to‐cost ratio by focusing on reduction of valueless time, valueless activity, and valueless variance in business processes. Interestingly, what satisfies customers can also efficiently align inventory. Several maxims are introduced throughout the paper to align the purpose and significance of inventory to a customer context.

Shifting organizational paradigms: Transitional management

Organizations of all shapes, sizes, and locations are being faced with changes not experienced since the industrial revolution. The globalization of business, increasing competition for a sophisticated workforce, advances in technology, the customers demand for products better, faster, and cheaper as well as other trends translate into opportunity for those who embrace it, and shrinking market share and potential difficulties for those that resist it. The primary issue is the context under which change will be endorsed. This article outlines the shifting organizational paradigms and recommends solutions that may mitigate the pitfalls of transitional management.

Inventory Reduction: Preventive and Corrective Strategies

Down with inventory! Do away with inventory! So cry the advocates of the Just‐in‐Time doctrine—a doctrine that holds that inventory by nature is idle and wasteful and by reason is an encumbrance on the operations and finances of an organization. Their denouncements of both intentional and negligent stockpiling inspire reform and herald the redesign of operating systems along more utilitarian lines. But where should an organization begin and how far should it go to pursue the fundamentals of an inventory curtailment policy? If the quest starts with immediate reduction of stocks, must it deliberately end with complete systems conversion? The answer will depend on current circumstances and operating philosophies for the future, if there were no temporal, operational, or financial constraints on organizations, they would simply produce or replenish inventory as dictated by customer demand. Their goal would be to buy, manufacture, and distribute directly to the actual demands of the marketplace. It would be rational for organizations to operate with a demand‐driven pull system.

Our working women : An underutilized resource

Abstract Attitudes toward the role of women in society are changing;. today, nearly half of all women between the ages of 18 and 64 hold jobs outside the home. The authors explore the current situation of these women in respect to their increasing awareness and the myths that still surround their employment. The investigation of four major areas of employment—education, government, politics, and business-reveals that women are inequitably treated in all four. A positive action program is suggested that would help to bring women into full participation in growth and development. The program requires management commitment, policy review, an audit of womens present status, measurement of attitudes, and continuous monitoring and adjustment of the program.

Cholesterol and inventory: healthy choice guidelines

This paper is a comparative analysis of cholesterol and inventory and their similar effects on organisational and human health. Its purpose is to find a level of commonality between cholesterol and inventory and reveal how an understanding of one can provide practical insights into the other. The research focuses on the discovery of how each operates in positive and negative manners and how these behaviours produce beneficial and detrimental outcomes. A study on the similarities provide the basis for structuring healthy guidelines in the management of both. The research concludes that preventive strategies are superior to remedial responses that may only address symptoms of disorders. Thus, the results emphasise the importance of early detection, treatments (for harmful conditions), and guidelines for future lifestyle or operational modifications.

A dynamic programming method for determining optimum liquidation quantities for slow-moving inventories

Abstract This paper has developed a dynamic programming method which ensures a mathematically optimum solution to the inventory liquidation problem when specific requirements are known over a finite time horizon. A computer code which implements this algorithm is available from the lead author.

Varying lot sizes as an alternative to undertime and layoffs in aggregate scheduling

SUMMARY When demand temporarily decreases, traditional aggregate-scheduling techniques call for either lay-offs, inventory build-ups, or increased worker idle time. For products made in batches or lots, an alternate method is to reduce the lot size, which in turn increases the number of set-ups and decreases the total production without affecting the work-force level. The latter effect is of particular significance in businesses that desire to maintain a constant workforce. This paper presents a method for finding the optimal (in terms of cost) lot sizes under the constraint that the work-force size remains constant. Multiple products are allowed, and a finite production rate is assumed. The method is compared to traditional methods in a case study. Compared to undertime, the use of reduced lot sizes is found to produce lower inventory costs and better customer service.