Assessing the Effects of Operational Processes and Information Systems on Inventory Performance

Journal of Operations Management, Vol. 21, No. 1, pp. 63-80, 2003

Posted: 5 Dec 2006

See all articles by Martin E. Dresner

Martin E. Dresner

University of Maryland

Philip Evers

University of Maryland

Elliot Rabinovich

Arizona State University - W.P. Carey School of Business

Abstract

Over the past decade, manufacturing firms have implemented enterprise-wide information systems in order to improve their performance. In many cases, the achieved results have been much less than anticipated. Previous research suggests that in order to realize maximum performance improvements it is necessary to access timely and informative customer demand data. While enterprise-wide information systems may contribute to the realization of this objective, operational processes, such as inventory management and mass customization may also be effective in improving the firm's inventory performance. This paper develops a structural equation model that evaluates the impact of enterprise-wide information systems, along with four operational processes, on inventory performance. The results indicate that the use of operational processes, especially just-in-time (JIT), rather than the use of enterprise-wide information systems, leads to improved performance as measured by inventory speculation, lead times, and turnover ratios.

Keywords: Logistics/distribution, MIS/operations interface, Empirical research methods, Structural equation modeling

Suggested Citation

Dresner, Martin E. and Evers, Philip and Rabinovich, Elliot, Assessing the Effects of Operational Processes and Information Systems on Inventory Performance. Available at SSRN: https://ssrn.com/abstract=948806

Martin E. Dresner

University of Maryland ( email )

College Park
College Park, MD 20742
United States

Philip Evers (Contact Author)

University of Maryland ( email )

College Park
College Park, MD 20742
United States

Elliot Rabinovich

Arizona State University - W.P. Carey School of Business ( email )

Tempe, AZ 85287-3706
United States

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