The Development of the Distribution/VMI Game Based on Theory of Constraints

Zheng, Kai‐Wen; Tsai, Chih‐Hung; Li, Rong‐Kwei; Chen, Ching‐Piao; Tsai, Shih‐Chieh

doi:10.1108/15982680980000627

Asian Journal on Quality

2009

DOI: 10.1108/15982680980000627

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The Development of the Distribution/VMI Game Based on Theory of Constraints

Kai‐Wen Zheng

Chih‐Hung Tsai²,

Rong‐Kwei Li³

et al.

Abstract: As the flourish of today’s supply chain, the traditional model of replenishment will cause accumulation of excessive inventory to the retailers and customers, or cause shortages and inability to meet the demands. To solve this problem, Theory of Constraints (TOC) proposed the replenishment model of demand‐pull, combined with the establishment of factory‐warehouse to achieve performance improvement. In the absence of empirical research, this study applied the Bean Game developed by Dr. Goldratt to design a supp… Show more

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Cited by 5 publications

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“…Hansen , Mowen, dan Guan (2009) menyatakan penekanan terhadap (Zheng, Tsai, Li, Chen, & Tsai, 2000 (2) methodological comparisons;…”

mentioning

confidence: 99%

Teori Kendala Sebagai Alat Pengukuran Kinerja

Kurniawan

2017

JAB

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Classifying accounting information for internal users of an organizations is one way to support the needs of information for managers. Managerial accounting has three main objectives, namely: (1) provide information for planning activities of the organization; (2) provide information for controlling the activity; (3) provide information to make effective decisions. Theory of constraints is a method used to perform continuous improvement in manufacturing and nonmanufacturing activity. It is characterized as a “thinking process” that begins by recognizing that all resources are limited to the most critical factor that is referred to as a constraint. One of the most interesting issues in the managerial accounting issue is the incentive-based compensation using a balanced scorecard. This research proposes theory of constraints as a performance measurement tool in the four perspectives of the balanced scorecard as an alternative to short-term measurement methods. The outcome framework in this research needs to be proceed to the next stage in upcoming researches.<br />Keywords: constraints, performance measurement, balanced scorecard

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“…Hansen , Mowen, dan Guan (2009) menyatakan penekanan terhadap (Zheng, Tsai, Li, Chen, & Tsai, 2000 (2) methodological comparisons;…”

mentioning

confidence: 99%

Teori Kendala Sebagai Alat Pengukuran Kinerja

Kurniawan

2017

JAB

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Synergizing ChatGPT and experiential learning: unravelling TOC based production planning and control variants through the dice game

Gupta,

de Souza

et al. 2024

International Journal of Production Research

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Using Exponentially Weighted Moving Average to Improve Buffer Adjustment of Demand-Driven Replenishment Strategies

Chang

Lee³

et al. 2019

Journal of Testing and Evaluation

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Stock management is a critical issue in supply chain management. Previous studies have shown that the demand-pull inventory replenishment strategy combined with a buffer management mechanism (DPBM) suggested by the theory of constraints (TOC) performs better than traditional replenishment strategies in supply chain stock management. In DPBM, buffer management is applied for controlling the target amount of stock to keep, which is adjusted by some predetermined rules that instruct when and how much to adjust the target level. Previous studies found that when applying DPBM to making replenishment decisions for products with a high-variation demand, long production lead-time, and short product life cycle, the conventional DPBM is not very effective. This article proposes a novel method for improving the conventional buffer management mechanism. Instead of the predetermined rules suggested by TOC, this study borrowed the concept of the exponentially weighted moving average approach that has been successfully applied in statistical quality control to design a new set of rules to assist in making buffer adjustment decisions based on the trends shown in demand. To evaluate the proposed method’s feasibility and validity, this article uses both real demand data provided by a wafer foundry factory in Taiwan and simulated data that reveal various demand patterns. As a result, the proposed method performs better than the conventional demand-driven replenishment strategies suggested by TOC, especially when demand has a large variance.

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The Development of the Distribution/VMI Game Based on Theory of Constraints

Cited by 5 publications

References 3 publications

Teori Kendala Sebagai Alat Pengukuran Kinerja

Teori Kendala Sebagai Alat Pengukuran Kinerja

Synergizing ChatGPT and experiential learning: unravelling TOC based production planning and control variants through the dice game

Using Exponentially Weighted Moving Average to Improve Buffer Adjustment of Demand-Driven Replenishment Strategies

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