Title: Modelling information sharing to improve just-in-time purchasing vendor evaluation

Authors: James T. Ding, Rohana J. Karunamuni

Addresses: Decisive Knowledge Consulting LLP, 555 California Street, San Francisco, CA 94104, USA. ' Department of Mathematical and Statistical Sciences, University of Alberta, Edmonton AB T6G 2G1, Canada

Abstract: Vendor evaluation is an important step for a manufacturer|s purchasing operation. For firms adopting Just-In-Time Purchasing (JITP) strategy, vendor evaluation is critical in quality improvement and cost reduction. In this paper, we examine the value of information sharing in improving vendor evaluation. We build stochastic models for three different scenarios of information sharing to illustrate the advantages for JITP vendor evaluation under the Assemble-To-Order (ATO) manufacturing environment. We show how integrating statistical and analytical tools with Enterprise Resource Planning (ERP) packages can help achieve efficient and effective managerial decision-making in JITP.

Keywords: assemble-to-order manufacturing; ATO; enterprise resource planning; ERP; information sharing; just-in-time; JIT purchasing; quality control; QC; vendor evaluation; quality improvement; cost reduction; modelling; decision making.

DOI: 10.1504/IJMTM.2008.015972

International Journal of Manufacturing Technology and Management, 2008 Vol.13 No.1, pp.30 - 54

Published online: 02 Dec 2007 *

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