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Analysis of two different automated purchase order systems in telecom electronics manufacturing unit

Author

Listed:
  • Lauri Rantala
  • Olli-Pekka Hilmola

Abstract

In this research we analyse how automated purchase order systems, implemented either in an 'entire perspective' or 'semi-automated perspective', have produced results in inventory turns perspective. Longitudinal analysis reveals that an entirely automated purchase order system improves inventory turns, and variation in performance between different ordered components decreases. However, a semi-automated system does not bring such clear results. Regression analysis reveals that, due to the discrete demand nature of ERP, the decreased order quantities do not directly result in improved inventory turns. Research also reports that MRP nervousness and component buffering services represent caveats for future APO implementations and use.

Suggested Citation

  • Lauri Rantala & Olli-Pekka Hilmola, 2010. "Analysis of two different automated purchase order systems in telecom electronics manufacturing unit," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 19(1/2), pages 140-164.
    • Handle: RePEc:ids:ijmtma:v:19:y:2010:i:1/2:p:140-164
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