IGNOU Synopsis
IGNOU Synopsis
IGNOU Synopsis
Synopsis On
Submitted by:
Enrolment No.-
Name
MBA (Operation Management)
Under the supervision of: Sumit
Agarwal
1.8 CONCLUSION................................................................................................................................ 15
REFERENCES:...................................................................................................................................... 16
INTRODUCTION
Supply chain has evolved very rapidly since 1990s showing an exponential growth in papers
in different journals of interest to academics and practitioners (Burgess et al. 2006). Supply
chains are generally complex with numerous activities (logistics, inventory, purchasing and
procurement, production planning, intra-and inter- organizational relationships and
performance measures) usually spread over multiple functions or organizations and
sometimes over lengthy time horizons. Supply chains tend to increase in complexity and the
involvement of numerous suppliers, service providers, and end consumers in a network of
relationships causes risks and vulnerability for everyone (Pfohl et al. 2010). The continuous
evolving dynamic structure of the supply chain poses many interesting challenges for
effective system coordination. Supply chain members cannot compete as independent
members. The product used by the end customer passes through a number of entities
contributed in the value addition of the product before its consumption. Also, the practices
like globalization, outsourcing and reduction in supply base have exacerbated the
uncertainty and risk exposure as well as more prone to supply chain disruption. Earlier
literature considers risks in relation to supply lead time reliability, price uncertainty, and
demand volatility which lead to the need for safety stock, inventory pooling strategy, order
split to suppliers, and various contract and hedging strategies (Tang 2006). But today's
supply networks have become very complex and vulnerable t
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"A Study on Impact of Inventory-Distribution Coordination on Supply Chain
Performance in Bata India Ltd"
ovarious supply chain risks hence these issues have pulled attention of various academics and
practitioners for the last few years (Oke and Gopalakrishnan 2009). Uncertainty relates to the
occurrence, irrespective of whether the outcome is positive or negative. The terms risk and
uncertainty are frequently used interchangeably (Ritchie and Brindley 2007). As firms move to
leaner operating models and increasingly leverage global sourcing models, uncertainty in both
supply and demand is growing along with supply chain complexity. To improve the overall
performance of supply chain, the members of supply chain may behave as a part of a unified
system and coordinate with each other. Thus "coordination" comes into focus. There seems to
be a general lack of managerial ability to integrate and coordinate the intricate network of
business relationships among supply chain members (Lambert and Cooper 2000). Stank et al.
information exchange, partnering, and performance monitoring. Lee (2000) proposes supply
chain coordination as a vehicle to redesign decision rights, workflow, and resources between
chain members to leverage better performance such as higher profit margins, improved
Coordinating Functions Across Supply Chain Members The supply chain members perform
different functions or activities like logistics, inventory management, ordering, forecasting and
product design involved in management of flow of goods, information and money. In traditional
supply chain individual members of supply chain have been performing these activities
independently. The supply chain members may earn benefits by coordinating various activities
"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
as discussed in following subsections. Logistics has traditionally been defined as the process of
planning, implementing, and controlling the efficient flow and storage of goods, services, and
related information as they travel from point of origin to point of consumption. The uncertainty
and complexity of decision making regarding logistics operations: diversified customers and
change and level of goal difficulty among logistics provider and the customer (supplier,
manufacturing sites lead to the need of coordination in this process (Huiskonen and Pirttila
2002).
The challenges lie in managing the network complexities to collectively create value to the end
customer (Stank et al. 1999; Stock et al. 2000) and integrating the logistics with whole supply
chain with the help of electronic communication. The major decisions regarding inventory
management include: determination of the order quantity, the timing of order, reorder point and
the replenishment of inventory. The factors which are considered while deciding the inventory
policy are customer demand (deterministic and random), number of members in supply chain,
replenishment lead time, number of different products stored, length of the planning horizon,
service level requirements and costs comprised of cost of production, transportation, taxes and
insurance, maintenance, obsolescence opportunity cost, stock out, etc. The changes even in one
of the above factors affect the decisions regarding inventory policy. The factors related to
inventory policy are highly dynamic because of changing market condition, supply uncertainty;
different and conflicting inventory policies among supply chain members, and unavailability of
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
inventory information of other members. To face the dynamic situation, the members of supply
chain have realized the importance of coordination in inventory management. Production and
substantial saving in global costs and to an improvement in relevant service by exploiting scale
economies of production and transportation, balancing production lots and vehicle loads, and
reducing total inventory and stock out. Chikan (2001) gave a theoretical background of
business issues regarding integration of these two functions and how this connection is handled
in education.
Demand
uncert
ainly
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
Figure 1.1: Managing Supply Chain Uncertainty with Supply Chain Management
movers of goods to strategic value-added entities. Similarly, there has been an expansion in the
scope of services offered by 3PL firms by including recent value-added functions such as after-
sales support, customer service and reverse logistics. Firms such as United Parcel Services,
which began as a logistics company has expanded their repertoire of skills as being a global
systems integrator and a supply chain solutions company. 3PLs play a key role in facilitating
supply chain integration and in some cases even managing entire supply chains. Integrating
Indeed, 3PL firms have transformed the roles of distribution centers from storage facilities to
channel assemblies by taking care of simple repair jobs that do not have to be sent back to
manufacturers. This study will examine the enablers of performance, and compares the factors
that influence performance in firms that integrate with inventory distribution coordination. This
study will also analyze whether there will be significant effect of information integration
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
the literature:
According to the study of Arshinder (2008) Supply chain coordination can be defined as
identifying interdependent supply chain activities between supply chain members and devise
Thomas J. Kull et al., (2007) integrated extended supply chains, e-commerce and learning
curve theory. The authors argued that learnability index utilizing learning rate metrics can be
helpful for firms wishing to benchmark their supply chain's customer interface effectiveness.
Piero Migliarese & Vincenzo Corvello (2007) compared virtual enterprises with vertically
integrated firms and production networks. They argued that virtual enterprises are suitable for
firms producing complex, modular products, with frequent changes in components but of low
knowledge specificity.
Gunther Zapfel & Michael Wasner (2006) developed a heuristic solution concept for an
integrated reel warehouse sequencing of a steel supply chain to capture all dynamic situations
of the warehousing processes. Peter Trkman & Groznik (2006) analyzed the main aspects
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
Kleindorfer and Saad (2005) asserted that continuous coordination, cooperation, and
coordination among supply chain partners are imperative for risk avoidance, reduction,
management and mitigation such that the value and benefits created are maximized and shared
fairly. Supply chain coordination is a strategic response to the challenges that arise from the
J. Liu et al., (2005) developed a common integrated management system called Workflow
supported inner Supply Chain Management system (WSCM) for Nanjing Jin Cheng Motor
Cycle Corporation Limited and most of its suppliers to manage their inner processes.
S. K. Jain & Taruna Upadhyaya (2005) presented an integrated model for agile supply chain
considering elements such as inbound logistics, internal operations and out bound logistics to
reduce total pipeline time in order to minimize C2C cycle time. Ming Dong & F. Frank Chen
(2005) presented an analytical framework for integrated logistic chains used to model different
network topologies such as series, parallel and assembly structures. Performance measures such
as fill rates, expected number of back-orders, expected number of orders waiting in queue,
expected inventory level and stock out probability were analyzed using GI / G / 1 queuing
model.
According to the study of (Larsen 2000) Collaborative working for joint planning, joint
product development, mutual exchange information and integrated information systems, cross
coordination on several levels in the companies on the network, long term cooperation and fair
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
Simatupang and Sridharan (2002) in their study focused on a collaborative supply chain
simply means that two or more independent companies work jointly to plan to execute supply
According to the study of Sunil Chopra & Meindl P., (2001) Firms need to develop an entire
system of meaningful performance measures to become and then remain competitive. Many of
the world's businesses respond to increased competitive pressure by attempting to develop and
decisions. Performance criteria that guide a firm's decision making to achieve strategic
objectives must be easy to implement, understand and measure. They must be flexible and
consistent with the firm's obj ectives and should be implemented in areas that are viewed as
which helps in giving the real outcome on the dimensions of supply chain performance.
Objectives are the base of any research and these make easier of the study to provide the right
performance,
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
Performance
4. Measure the effect of Distributor Performance Evaluation on Firm's Performance.
The present research is a Descriptive in nature. In this present research study the strategic
enabling factors of distribution coordination in supply chain management will be studied and an
attempt would be made to identify the intensity of the factors affecting the firm's performance.
This is a manufacturing and logistics sector based study in which various segments of
population would be sampled. The study is primarily based on preliminary data that is collected
from the field through questioning the respondents with the help of structured questionnaire
based on five point Likert scale. As per the research design manufacturing and logistics units
The deductive approach is based on the formulation of hypothesis in which specific decision is
to be made and for testing the hypothesis a strategic approach will be formed. But when the
problems of statements are open and the generalizations are made for reaching the conclusions,
this research approach is called inductive. In this approach theory will developed on the basis of
results. This research study will purely deductive in nature. All the results of the hypotheses
will come to an end and deal with some conclusions and implications.
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
In this study Survey Strategy through questionnaire will be chosen for collecting the data.
Collecting data from structured questionnaire is a common method in business research. This
Survey Method allows the opportunity of collecting data from a large sample size of
population. A survey allows for standardization of data which allows easy comparisons. In
authoritative. Furthermore, the survey method gives more control over the research process.
The principle instrument will be a questionnaire, on which each (respondent) will be asked to
The study will be restricted to the manufacturing sector which is very vast for the study so the
researcher will be focused on the Inventory Distribution Coordination which is an integral part
of logistic units. All the leading manufacturing units of India will be included in the study.
Sampling Unit: For the research total 300 respondents were selected.
Sampling Techniques: For the study of purposive, convenience and random sampling techniques will be
used.
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
1.5.5. SCALING
A psychologist Rensis Likert developed this Likert-scale for measuring the degree, intensity,
scale. It has many parameters to quantify the data. Some researchers adopt five-point, seven-
point, three-point, ten-point or four-point depending on the need of the study. In this study five
For the research 300 questionnaires were distributed to the target respondents of Central India
that covered the managers of firms who have inventory distribution coordination in supply
chain management and also 300 managers of those firms who do not have inventory
The data coded in excel using Ms-Office package. The coded data will then analyzed using
graph chart . The data will be analyzed using descriptive statistics. First all questions will be
subjected to frequency analysis and item total correlation to check whether the scale is
measuring any variation or not. Thereafter, the reliability and validity of the scale will be done
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
1.6 HYPOTHESES
H13: There is a significant effect of Distributor Selection Criteria on Firm's Performance. H04:
There is no significant effect of Distributor Performance Evaluation on Firm's Performance.
This study will be concluded that there will be a significant impact of inventory distribution
coordinate their activities across firm boundaries and this increased coordination provides
1. Integration enables reduced transaction process costs, increases the speed and accuracy with
which companies respond to trading partners. In addition, lowering total supply chain costs
increases overall profit, which benefits all the participants in the supply chain. 2. More efficient
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
3. Improved supply chain planning: Integration allows firms to share information about sales
forecasts, promotions, capacity utilization, etc. CPFR efforts can both increase sales and reduce
4. Supply chain optimization: Integration allows firms not only to operate in the same way
more efficiently but also allows them to reconfigure how they operate together.
1.8 CONCLUSION
Many firms simply are unaware of the fundamental dynamics of supply chains, but even those
firms that are enlightened enough to understand these dynamics are often unable to realize inter-
organizational coordination. Often the most effective supply chains have a dominating
organization that sees the benefits of SCC and forces the rest of the supply chain to comply (i.e.,
global leader in retailing such as Wal-Mart). Many supply chains, however, either do not have a
coordinating the supply chain is most difficult. Typically, it is observed that the SCC problems
could be due to the conflicting objectives that leads to a short time relationships with SC
members, hence the environment and expectations changes frequently with dealing with new
members.
The research is required to explore the utility of contracts in multi-period cases. In multi period
model, the supply chain members are more expose to the uncertainty as they are dealing with
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
supply chain members frequently. How various coordination mechanisms can be allied in multi
REFERENCES:
1. Arshinder K (2008) An integrative framework for supply chain coordination.
5. Kleindorfer PR, Saad GH (2005) Managing disruptions risks in supply chains. Prod
6. Lambert DM, Cooper MC (2000) Issues in supply chain management. Ind Mark Manage
29(1): 65-83.
7. Lee HL (2000) Creating value through supply chain integration. Supply Chain Manage Rev
4(4): 30-36.
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"A Study on Impact of Inventory-Distribution Coordination on
Supply Chain
Performance in Bata India Ltd"
9. Pfohl H, Kohler H, Thomas D (2010) State of the art in supply chain risk management
research: empirical and conceptual findings and a roadmap for the implementation in
10. Ritchie B, Brindley C (2007) Supply chain risk management and performance: a guiding
framework for future development. Int J Oper Prod Manage 27(3):303- 322.
11. Stank TP, Crum MR, Arango M (1999) Benefits of inter-firm coordination in food industry
12. Simatupang TM, Sridharan R (2002) The collaborative supply chain. Int J Logistics Manage
13(1):15-30
13. Simatupang TM, Wright AC, Sridharan R (2002) The knowledge of coordination for supply
14. Simatupang TM, Sandroto IV, Lubis SBH (2004) Supply chain coordination in a fashion
15. Stock GN, Greis NP, Kasarda JD (2000) Enterprise logistics and supply chain structure: the
16. Tang CS (2006) Perspectives in supply chain risk management. Int J Prod Econ 103(2):451-
488.
17. Thomas DJ, Griffin PM (1996) Coordinated supply chain management. Eur J Oper Res
94(1): 1-15.
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