Snehamay Banerjee

The impact of electronic data interchange on purchasing: an empirical investigation

As the use of inter‐organizational information systems such as electronic data interchange (EDI) increases, it becomes important to determine what impact, if any, their adoption has on different functions of an organization. Since the purchasing function is among one of the most affected by EDI adoption, a survey of purchasing managers was conducted to assess the extent of EDI′s impact on purchasing. The results, based on 122 EDI users, indicate that increasing the percentage of purchasing transactions using EDI permits more automation but some of these benefits may not be fully realized due to some associated inefficiencies. However, those organizations that have encouraged their vendors to use EDI appear to have significantly improved organizational efficiencies. These organizations also did not perceive any significant organizational changes due to EDI adoption. The implications of these findings are discussed.

A coordinated order-up-to inventory control policy for a single supplier and multiple buyers using electronic data interchange

Abstract One way to reduce inventory related costs is to shorten the time lag in communication and shipment. Electronic data interchange (EDI) is a potential tool that can help achieve this. We develop an analytical model based on a common cycle time approach, for inventory control under stochastic conditions for a vendor and multiple buyers dealing with a single product. The coordination implied by such an approach is facilitated by EDI. We present an iterative algorithm for calculating the operating parameters. We show that implementation of this model can be economically desirable to all parties involved.

Model type selection in an integrated DSS environment

Abstract Effective computer based support for the use of analytic models in management decision making requires model management systems (MMS) that facilitate all phases of the modeling process. Existing approaches to the design of MMS commonly assume that the type of model needed to solve each problem is predetermined by the decision maker. This is a limited view, since determination of the appropriate model type is a difficult task, and is hampered by the subjective preferences of individuals. In this paper, we describe the model (type) selection process, argue why support for this should be integral to MMS design, and overview an approach to the design of the model selection subsystem in an integrated DSS.

Information technology investments in purchasing: an empirical study of dimensions and antecedents

Abstract Despite the fact that U.S. companies have made substantial investments in information technology (IT), there is a paucity of empirical research on the nature of IT investments and boundary conditions that determine the extent of these investments. This study reviews the extant IT literature, develops a series of propositions related to the multidimensional nature of IT investments and their relationship with several antecedent conditions, and presents the results of an empirical test of the propositions in the context of the purchasing function of U.S. firms. Our results support the premise that IT used in purchasing is not a homogeneous phenomenon, but can, instead, be represented by three dimensions: base computer systems and support, purchasing-specific applications, and vender communications. Our findings further indicate that IT dimensions respond in a varying fashion to different antecedent conditions. Support was also found for the building-block nature of IT investments.

EDI Implementation in JIT and Non‐JIT Manufacturing Firms: A Comparative Study

To compete successfully in the global market, firms are adopting new technologies and manufacturing strategies. The Just‐in‐Time (JIT) philosophy and Electronic Data Interchange (EDI) are two recent developments that can help these firms. The success of JIT depends on timely and effective exchange of information between the manufacturing firm and its trading partners. The literature suggests that EDI, as a communication tool, can meet this demand. However, no study investigates the impact of EDI in the JIT environment. Also, the literature lacks a thorough investigation of the EDI benefits realized by JIT and non‐JIT manufacturing firms. This empirical study examines these issues. It is found that the reason for choosing EDI and the benefits realized by JIT firms differ from those of the non‐JIT firms. Further analysis suggests that JIT firms benefit more from EDI that non‐JIT firms.

EDI Implementation: A Comparative Study of JIT and Non‐JIT Manufacturing Firms

To compete successfully in the global market, firms are adopting new technologies and manufacturing strategies. The just‐in‐time (JIT) philosophy and electronic data interchange (EDI) are two recent developments that can help these firms. The success of JIT depends on timely and effective exchange of information between the manufacturing firm and its trading partners. The literature suggests that EDI, as a communication tool, can meet this demand. However, no study investigates the impact of EDI in the JIT environment. Also, the literature lacks a thorough investigation of the EDI benefits realized by JIT and non‐JIT manufacturing firms. Examines these issues and finds that the reason for choosing EDI and the benefits realized by JIT firms differ from those of the non‐JIT firms. Suggests that JIT firms benefit more from EDI than non‐JIT firms.

A methodology for knowledge based decision support for facilities layout planning

The area of facilities layout planning contains a mix of specialised models in addition to a requirement for human experience and subjective judgements in the decision process. In this paper the task of choosing a suitable facilities layout planning model for a given problem is a non-trivial one, due to the unique requirements of individual situations, and the purpose a methodology for the design of a knowledge based Decision Support System (DSS) which is calibrated with heuristics elicited from experienced layout planners. The rationale and structure of the model are discussed, as are its mode of usage and future research issues.

Security Issues in the EDI Environment

Electronic Data Interchange (EDI) is rapidly becoming integrated in a wide range of businesses. EDI usage is expected to increase in the immediate future. This high growth in a potentially paperless environment presents a variety of security risks, such as disclosure of messages, tampering with messages, etc. Current legal and contract‐related literature dealing with paper documents is not equipped to deal with such problems. Identifies different types of security risks and EDI agreements, and examines potential security risks under these agreements. Discusses future research directions. This synthesis should be useful to EDI users and researchers.

Evaluating strategic alternatives: an analytical model

The amount of information involved in strategic decision making and the computational limitations of human decision makers makes strategy selection a difficult task. Various approaches from sheer intuition to computerized decision systems have been proposed for strategy selection. In this paper we present an analytical model which systematically evaluates a series of strategic alternatives by decomposing environmental opportunities and threats into internal, transactional, and contextual segments. Judgments about opportunities and threats are used to obtain two composite weighted scores measuring the risk and return associated with each strategic alternative. The proposed system puts the decision maker and the computer into an interactive partnership by providing a formal and systematic approach to strategy selection while using the computer to manage complex logical processes and vast amounts of information.

Heuristic production triggering mechanisms under discrete unequal inventory withdrawals

Abstract The existing literature on inventory control has largely ignored the timing issue concerning inventory replenishment under discrete demand, occurring in sizeable lot quantities at irregular intervals. Such demand patterns are not uncommon in industrial purchasing situations, where customers buy products, based on their own purchase lot sizing policies, from wholesalers or commercial vendors. This paper specifically addresses the question of designing mechanisms for triggering setups of replenishment production lots of a product, which is sold to several commercial customers in a stochastic environment and is manufactured in a batch production facility, strictly from the vendors perspective. Due to the analytical difficulties in the statistical modeling of stochastic demand patterns described above, we develop several heuristics, based on both continuous and periodic inventory review, for the purpose of signalling the startup of a production batch. The effectiveness of these heuristic procedures are tested through a series of simulation experiments.