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Responding to schedule changes in build‐to‐order supply chains
Author(s) -
Krajewski Lee,
Wei Jerry C.,
Tang LingLang
Publication year - 2005
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2004.10.006
Subject(s) - postponement , supply chain , schedule , flexibility (engineering) , order (exchange) , linkage (software) , business , term (time) , computer science , industrial organization , process (computing) , supply chain management , operations management , operations research , process management , marketing , economics , biochemistry , chemistry , physics , engineering , gene , operating system , management , finance , quantum mechanics
This multiple case study explores the reaction strategies suppliers use to respond to short‐term dynamics of schedule changes in build‐to‐order supply chains. We examine the relationship and supply chain processes between a notebook computer manufacturer and five component suppliers. Two distinct reaction strategies emerge from these five buyer–supplier dyads. The “reduce uncertainty” strategy emphasizes supply contracts with a high degree of restrictiveness, relatively infrequent schedule revisions, and a high level of form postponement. The “cope with uncertainty” strategy emphasizes flexible supply contracts, relatively frequent schedule revisions, and low levels of form postponement. Eight propositions are formulated to understand the linkage between a supplier's power, its short‐term process flexibility, and the elements of its reaction strategy. The paper concludes by proposing future research directions.