IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v40y2012i2p159-165.html
   My bibliography  Save this article

The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms

Author

Listed:
  • Olhager, Jan
  • Prajogo, Daniel I.

Abstract

Manufacturing firms aim at improving both internal and external processes to improve the competitive advantage. Such initiatives include lean practices as well as supplier rationalization and integration. In this paper, we analyze these improvement initiatives and their impact on business performance. In particular, we explore potential differences between make-to-order (MTO) and make-to-stock (MTS) firms. We use data from 216 Australian manufacturing firms. We find a clear difference of improvement focus between MTO and MTS firms. MTO firms exhibit a significant impact of supplier integration on business performance, but not for lean practices and supplier rationalization. The situation is completely reversed for MTS firms, since they have significant effects for internal lean practices and supplier rationalization, but not for logistics integration with supplier. The results show that the distinction between MTO and MTS firms is important when analyzing manufacturing and supply chain improvement initiatives.

Suggested Citation

  • Olhager, Jan & Prajogo, Daniel I., 2012. "The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms," Omega, Elsevier, vol. 40(2), pages 159-165, April.
    • Handle: RePEc:eee:jomega:v:40:y:2012:i:2:p:159-165
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048311000661
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. van der Vaart, Taco & van Donk, Dirk Pieter, 2008. "A critical review of survey-based research in supply chain integration," International Journal of Production Economics, Elsevier, vol. 111(1), pages 42-55, January.
    2. ,, 1998. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 14(5), pages 687-698, October.
    3. Awi Federgruen & Ziv Katalan, 1999. "The Impact of Adding a Make-to-Order Item to a Make-to-Stock Production System," Management Science, INFORMS, vol. 45(7), pages 980-994, July.
    4. White, Richard E. & Prybutok, Victor, 2001. "The relationship between JIT practices and type of production system," Omega, Elsevier, vol. 29(2), pages 113-124, April.
    5. Tseng, Fang-Mei & Chiu, Yu-Jing & Chen, Ja-Shen, 2009. "Measuring business performance in the high-tech manufacturing industry: A case study of Taiwan's large-sized TFT-LCD panel companies," Omega, Elsevier, vol. 37(3), pages 686-697, June.
    6. Yu, Haisheng & Zeng, Amy Z. & Zhao, Lindu, 2009. "Single or dual sourcing: decision-making in the presence of supply chain disruption risks," Omega, Elsevier, vol. 37(4), pages 788-800, August.
    7. Joynt, Pat, 1977. "Contingency analysis for effective administration," Omega, Elsevier, vol. 5(4), pages 425-435.
    8. Anthony J. D' Alessandro & Alok Baveja, 2000. "Divide and Conquer: Rohm and Haas' Response to a Changing Specialty Chemicals Market," Interfaces, INFORMS, vol. 30(6), pages 1-16, December.
    9. van Donk, Dirk Pieter, 2001. "Make to stock or make to order: The decoupling point in the food processing industries," International Journal of Production Economics, Elsevier, vol. 69(3), pages 297-306, February.
    10. Kannan, Vijay R. & Tan, Keah Choon, 2005. "Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance," Omega, Elsevier, vol. 33(2), pages 153-162, April.
    11. Yue, Jinfeng & Xia, Yu & Tran, Thuhang, 2010. "Selecting sourcing partners for a make-to-order supply chain," Omega, Elsevier, vol. 38(3-4), pages 136-144, June.
    12. Sawik, Tadeusz, 2010. "Single vs. multiple objective supplier selection in a make to order environment," Omega, Elsevier, vol. 38(3-4), pages 203-212, June.
    13. Seidmann, Abraham & Sundararajan, Arun, 1997. "The effects of task and information asymmetry on business process redesign," International Journal of Production Economics, Elsevier, vol. 50(2-3), pages 117-128, June.
    14. Callen, Jeffrey L. & Fader, Chris & Krinsky, Itzhak, 2000. "Just-in-time: A cross-sectional plant analysis," International Journal of Production Economics, Elsevier, vol. 63(3), pages 277-301, January.
    15. Ben Naylor, J. & Naim, Mohamed M & Berry, Danny, 1999. "Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 107-118, May.
    16. ,, 1998. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 14(3), pages 381-386, June.
    17. ,, 1998. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 14(4), pages 525-537, August.
    18. Berger, Paul D. & Gerstenfeld, Arthur & Zeng, Amy Z., 2004. "How many suppliers are best? A decision-analysis approach," Omega, Elsevier, vol. 32(1), pages 9-15, February.
    19. ,, 1998. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 14(2), pages 285-292, April.
    20. Germain, Richard, 1996. "The role of context and structure in radical and incremental logistics innovation adoption," Journal of Business Research, Elsevier, vol. 35(2), pages 117-127, February.
    21. Olhager, Jan, 2003. "Strategic positioning of the order penetration point," International Journal of Production Economics, Elsevier, vol. 85(3), pages 319-329, September.
    22. S. Rajagopalan, 2002. "Make to Order or Make to Stock: Model and Application," Management Science, INFORMS, vol. 48(2), pages 241-256, February.
    23. ,, 1998. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 14(1), pages 151-159, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Agra, Agostinho & Poss, Michael & Santos, Micael, 2018. "Optimizing make-to-stock policies through a robust lot-sizing model," International Journal of Production Economics, Elsevier, vol. 200(C), pages 302-310.
    2. Ýbrahim S. Karakadýlar & Ben J. Hicks, 2015. "Exploring the Moderating Role of Lean Production on Supplier Performance: An Empirical Study of Turkish Automotive Part Suppliers," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 29(2), pages 73-97.
    3. Ghobadian, Abby & Talavera, Irene & Bhattacharya, Arijit & Kumar, Vikas & Garza-Reyes, Jose Arturo & O'Regan, Nicholas, 2020. "Examining legitimatisation of additive manufacturing in the interplay between innovation, lean manufacturing and sustainability," International Journal of Production Economics, Elsevier, vol. 219(C), pages 457-468.
    4. Bortolotti, Thomas & Boscari, Stefania & Danese, Pamela, 2015. "Successful lean implementation: Organizational culture and soft lean practices," International Journal of Production Economics, Elsevier, vol. 160(C), pages 182-201.
    5. Chuang, Chia-Hung & Zhao, Yabing, 2019. "Demand stimulation in finished-goods inventory management: Empirical evidence from General Motors dealerships," International Journal of Production Economics, Elsevier, vol. 208(C), pages 208-220.
    6. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    7. Lu, Qihui & Chen, Xiangfeng, 2018. "Capacity expansion investment of supplier under make-to-order and make-to-stock supply chains," International Journal of Production Economics, Elsevier, vol. 198(C), pages 133-148.
    8. Santosh Kumar Pattanayak & Supriyo Roy & Biswajit Satpathy, 2019. "Does Integration of Business Processes and ERP Improves Supply Chain Performances? Evidence from Indian Capital Goods Industry," Vision, , vol. 23(4), pages 341-356, December.
    9. Prajogo, Daniel & Chowdhury, Mesbahuddin & Yeung, Andy C.L. & Cheng, T.C.E., 2012. "The relationship between supplier management and firm's operational performance: A multi-dimensional perspective," International Journal of Production Economics, Elsevier, vol. 136(1), pages 123-130.
    10. Jhang, Shih-Sian (Sherwin) & Ogden, Joseph P. & Suresh, Nallan C., 2019. "Operational and financial configurations contingent on market power status," Omega, Elsevier, vol. 88(C), pages 91-109.
    11. Danese, Pamela, 2013. "Supplier integration and company performance: A configurational view," Omega, Elsevier, vol. 41(6), pages 1029-1041.
    12. Dirk Pieter van Donk & Ron van Doorne, 2016. "The impact of the customer order decoupling point on type and level of supply chain integration," International Journal of Production Research, Taylor & Francis Journals, vol. 54(9), pages 2572-2584, May.
    13. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2022. "Merging make-to-stock/make-to-order decisions into sales and operations planning: A multi-objective approach," Omega, Elsevier, vol. 107(C).
    14. Bacchetti, Andrea & Saccani, Nicola, 2012. "Spare parts classification and demand forecasting for stock control: Investigating the gap between research and practice," Omega, Elsevier, vol. 40(6), pages 722-737.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mile Katic & Renu Agarwal, 2018. "The Flexibility Paradox: Achieving Ambidexterity in High-Variety, Low-Volume Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(1), pages 69-86, March.
    2. Dolf Talman & Zaifu Yang, 2012. "On a Parameterized System of Nonlinear Equations with Economic Applications," Journal of Optimization Theory and Applications, Springer, vol. 154(2), pages 644-671, August.
    3. Zhiqiang Zheng & Balaji Padmanabhan & Steven O. Kimbrough, 2003. "On the Existence and Significance of Data Preprocessing Biases in Web-Usage Mining," INFORMS Journal on Computing, INFORMS, vol. 15(2), pages 148-170, May.
    4. Herings, P.J.J. & Talman, A.J.J. & Yang, Z.F., 1999. "Variational Inequality Problems With a Continuum of Solutions : Existence and Computation," Other publications TiSEM 73e2f01b-ad4d-4447-95ba-a, Tilburg University, School of Economics and Management.
    5. Carlos R. Handy & Daniel Vrinceanu & Carl B. Marth & Harold A. Brooks, 2015. "Pointwise Reconstruction of Wave Functions from Their Moments through Weighted Polynomial Expansions: An Alternative Global-Local Quantization Procedure," Mathematics, MDPI, vol. 3(4), pages 1-24, November.
    6. Allen C. Goodman & Miron Stano, 2000. "Hmos and Health Externalities: A Local Public Good Perspective," Public Finance Review, , vol. 28(3), pages 247-269, May.
    7. Bode, Sven & Michaelowa, Axel, 2003. "Avoiding perverse effects of baseline and investment additionality determination in the case of renewable energy projects," Energy Policy, Elsevier, vol. 31(6), pages 505-517, May.
    8. Ala, Guido & Fasshauer, Gregory E. & Francomano, Elisa & Ganci, Salvatore & McCourt, Michael J., 2017. "An augmented MFS approach for brain activity reconstruction," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 141(C), pages 3-15.
    9. Bettina Campedelli & Andrea Guerrina & Giulia Romano & Chiara Leardini, 2014. "La performance della rete ospedaliera pubblica della regione Veneto. L?impatto delle variabili ambientali e operative sull?efficienza," MECOSAN, FrancoAngeli Editore, vol. 2014(92), pages 119-142.
    10. Haider A. Khan, 2004. "General Conclusions: From Crisis to a Global Political Economy of Freedom," Palgrave Macmillan Books, in: Global Markets and Financial Crises in Asia, chapter 9, pages 193-211, Palgrave Macmillan.
    11. Penn Loh & Zoë Ackerman & Joceline Fidalgo & Rebecca Tumposky, 2022. "Co-Education/Co-Research Partnership: A Critical Approach to Co-Learning between Dudley Street Neighborhood Initiative and Tufts University," Social Sciences, MDPI, vol. 11(2), pages 1-17, February.
    12. Broekhuis, Manda & Vos, Janita F.J., 2003. "Improving organizational sustainability using a quality perspective," Research Report 03A43, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    13. O'Brien, Raymond & Patacchini, Eleonora, 2003. "Testing the exogeneity assumption in panel data models with "non classical" disturbances," Discussion Paper Series In Economics And Econometrics 0302, Economics Division, School of Social Sciences, University of Southampton.
    14. van der Laan, G. & Talman, A.J.J. & Yang, Z.F., 2002. "Perfection and Stability of Stationary Points with Applications in Noncooperative Games," Discussion Paper 2002-108, Tilburg University, Center for Economic Research.
    15. Edcarlos D. Silva & J. C. Albuquerque & T. R. Cavalcante, 2021. "Fourth-order nonlocal type elliptic problems with indefinite nonlinearities," Partial Differential Equations and Applications, Springer, vol. 2(2), pages 1-22, April.
    16. YongSeog Kim & W. Nick Street & Gary J. Russell & Filippo Menczer, 2005. "Customer Targeting: A Neural Network Approach Guided by Genetic Algorithms," Management Science, INFORMS, vol. 51(2), pages 264-276, February.
    17. Montijano, J.I. & Rández, L. & Van Daele, M. & Calvo, M., 2020. "On the numerical stability of the exponentially fitted methods for first order IVPs," Applied Mathematics and Computation, Elsevier, vol. 379(C).
    18. Yanling Li & Zita Oravecz & Shuai Zhou & Yosef Bodovski & Ian J. Barnett & Guangqing Chi & Yuan Zhou & Naomi P. Friedman & Scott I. Vrieze & Sy-Miin Chow, 2022. "Bayesian Forecasting with a Regime-Switching Zero-Inflated Multilevel Poisson Regression Model: An Application to Adolescent Alcohol Use with Spatial Covariates," Psychometrika, Springer;The Psychometric Society, vol. 87(2), pages 376-402, June.
    19. Jensen, Nathan M. & Li, Quan & Rahman, Aminur, 2007. "Heard melodies are sweet, but those unheard are sweeter : understanding corruption using cross-national firm-level surveys," Policy Research Working Paper Series 4413, The World Bank.
    20. Oscar J. Cacho & Robyn L. Hean & Russell M. Wise, 2003. "Carbon‐accounting methods and reforestation incentives," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), pages 153-179, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:40:y:2012:i:2:p:159-165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.