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“Monday Effect” on Performance Variations in Supply Chain Fulfillment: How Information Technology–Enabled Procurement May Help

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  • Yuliang Yao

    (College of Business, Lehigh University, Bethlehem, Pennsylvania 18015)

  • Martin Dresner

    (Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20742)

  • Kevin Xiaoguo Zhu

    (Rady School of Management, University of California, San Diego, La Jolla, California 92093)

Abstract

Although there are both process-related and human-related grounds for systematic performance variations across days of the week, such a phenomenon has not caught the attention of information systems or operations management scholars. Using transaction-level data from the U.S. Government’s General Services Administration, we study three layers of effects: the Monday Effect, the Technology Effect, and the Product Effect. First, we assess whether performance varies across days of the week in supply chain fulfillment, measured by order cycle time, complete orders fulfilled, and short shipment percentage (i.e., the Monday Effect). Furthermore, we assess how information technology (IT), notably an electronic market, can mitigate such variations (i.e., the Technology Effect), and how product characteristics moderate such effects (i.e., the Product Effect). Our findings show that there indeed exist significant, systematic performance variations across days of the week, with Mondays having poorer performance than other days of the week, after controlling for workload and other factors. Further, we find that much of the performance variation can be reduced when an IT-enabled electronic market is adopted. Specifically, the performance gaps in order cycle time, complete orders fulfilled, and short shipment percentage are reduced by 94%, 71%, and 80%, respectively. We further find that IT improves not only the mean level, but also the variance , of operations performance. Finally, we find that the electronic market is most effective at mitigating the Monday Effect for less frequently transacted products, such as products of high value, products that are slow moving, and specialized products with small numbers of buyers. These findings suggest that measures can be taken to reduce fulfillment deficiencies, including using information systems to mitigate variations in operations management, leading, potentially, to operational continuity and higher service levels in the supply chain.

Suggested Citation

  • Yuliang Yao & Martin Dresner & Kevin Xiaoguo Zhu, 2019. "“Monday Effect” on Performance Variations in Supply Chain Fulfillment: How Information Technology–Enabled Procurement May Help," Information Systems Research, INFORMS, vol. 30(4), pages 1402-1423, December.
  • Handle: RePEc:inm:orisre:v:30:y:2019:i:4:p:1402-1423
    DOI: 10.1287/isre.2019.0870
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    1. Jia Gao & Ying Rong & Xin Tian & Yuliang Yao, 2024. "Improving Convenience or Saving Face? An Empirical Analysis of the Use of Facial Recognition Payment Technology in Retail," Information Systems Research, INFORMS, vol. 35(1), pages 16-27, March.

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