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Citation
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HERO ID
7222653
Reference Type
Journal Article
Title
Microdosing flexibility in an efficient supply chain
Author(s)
Saunders, LW; Merrick, JRW; Holcomb, MC; ,
Year
2020
Is Peer Reviewed?
Yes
Journal
Journal of Operations Management
ISSN:
0272-6963
Publisher
WILEY
Location
HOBOKEN
DOI
10.1002/joom.1117
Web of Science Id
WOS:000576520700001
Abstract
The designation of a supply chain as efficient or responsive has often been considered to be a dichotomy in theory and practice. This technical note explores this issue by describing an engagement by the research team with a large consumer packaged-goods company within their cosmetics supply chain during the launch of a new product family. The company was experiencing high supply-demand mismatch costs that they attributed to their supply chain that was designed to emphasize efficiency over responsiveness. We analyzed the appropriateness of the supply-chain design through the lens of theory and concluded that the efficient design was in fact a good match for the product. A simulation model allowed us to organize available data and identify the root cause of the mismatch costs. Results from the simulation showed that the mismatch costs stemmed primarily from a failure to deploy small but important responsiveness opportunities: Because the supply chain was designated as efficient, responsiveness was ignored, and this substantially increased mismatches. Mismatches also occurred because decision makers failed to distinguish between delivery and decision lead time.
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