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Managing Supply Chain Execution: Monitoring Timeliness and Correctness via Individualized Trace Data
Author(s) -
Shu Jun,
Barton Russell
Publication year - 2012
Publication title -
production and operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.279
H-Index - 110
eISSN - 1937-5956
pISSN - 1059-1478
DOI - 10.1111/j.1937-5956.2012.01353.x
Subject(s) - correctness , computer science , trace (psycholinguistics) , visibility , supply chain , grasp , quality (philosophy) , asset (computer security) , process (computing) , process management , control (management) , data quality , product (mathematics) , risk analysis (engineering) , computer security , software engineering , business , marketing , artificial intelligence , metric (unit) , philosophy , linguistics , physics , geometry , mathematics , epistemology , optics , programming language , operating system
Improvements in information technologies provide new opportunities to control and improve business processes based on real‐time performance data. A class of data we call individualized trace data (ITD) identifies the real‐time status of individual entities as they move through execution processes, such as an individual product passing through a supply chain or a uniquely identified mortgage application going through an approval process. We develop a mathematical framework which we call the State‐Identity‐Time (SIT) Framework to represent and manipulate ITD at multiple levels of aggregation for different managerial purposes. Using this framework, we design a pair of generic quality measures—timeliness and correctness—for the progress of entities through a supply chain. The timeliness and correctness metrics provide behavioral visibility that can help managers to grasp the dynamics of supply chain behavior that is distinct from asset visibility such as inventory. We develop special quality control methods using this framework to address the issue of overreaction that is common among managers faced with a large volume of fast‐changing data. The SIT structure and its associated methods inform managers on if , when , and where to react. We illustrate our approach using simulations based on real RFID data from a Walmart RFID pilot project.