Title: Supply chain analytic capability: environment and performance

Authors: Karthik N.S. Iyer, Richard Germain, Gary L. Frankwick

Addresses: College of Business Administration, University of Northern Iowa, Cedar Falls, IA 50614, USA. ' Challenge for Excellence Chair in Supply Chain Management, College of Business and Public Policy, University of Louisville, Louisville, KY 40292, USA. ' Spears School of Business, Oklahoma State University, Stillwater, OK 74078, USA

Abstract: The research studies antecedents and consequences of enhanced decision-making capability fostered by advanced analytic software such as warehouse management systems and advanced planning and scheduling. The results show that analytic capability leads to better logistical performance (e.g. inventory turnover rates, length of the order cycle) and better operational stability (e.g. more consistent order cycles and warehouse throughput rates). The environment in the form of process turbulence and demand unpredictability affects analytic capability, logistical performance and operational stability. Process turbulence generally has a positive impact: it associates with greater levels of analytic capability, improved logistical performance, and more consistent operations. On the other hand, demand unpredictability has negative implications: it associates with a lower level of analytic capability, poorer logistical performance and inconsistent operations.

Keywords: analytic capability; environmental uncertainty; logistical performance; operational stability; supply chain optimisation; process turbulence; demand unpredictability; real time.

DOI: 10.1504/IJISM.2007.012632

International Journal of Integrated Supply Management, 2007 Vol.3 No.3, pp.302 - 320

Published online: 28 Feb 2007 *

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