Authors: Rantala, Lauri¹; Hilmola, Olli-Pekka²

Source: International Journal of Manufacturing Technology and Management, Volume 19, Numbers 1-2, 30 November 2009 , pp. 140-164(25)

Publisher: Inderscience Publishers

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.

Keywords: COMPUTING AND MATHEMATICS JOURNALS; Computing Science, Applications and Software; Internet and Web Services; TECHNICAL JOURNALS; Materials and Manufacturing; MANAGEMENT JOURNALS; Operational Management, Marketing and Services; Policy and Organisational Management; Technology Management

Document Type: Research article

DOI: http://dx.doi.org/10.1504/IJMTM.2010.029455

Affiliations: 1: Department of Marketing, Turku School of Economics, Rehtorinpellonkatu 3, FIN-20500 Turku, Finland. 2: Lappeenranta University of Technology, Kouvola Research Unit, Prikaatintie 9, FIN-45100 Kouvola, Finland

Publication date: 2009-11-30

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