Production Lots as Determinant of Paper Production Lead Time Performance

Pekka Koskinen and Olli-Pekka Hilmola
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Pekka Koskinen: Confidea Business Consulting, Finland
Olli-Pekka Hilmola: Lappeenranta University of Technology, Finland

International Journal of Information Systems and Supply Chain Management (IJISSCM), 2009, vol. 2, issue 4, 63-79

Abstract: In this research work we are interested about connection between lead time performance, and production order size as well as in how many production lots this order was eventually produced. Based on the system dynamics simulation model, the authors got a priori assumption that production lots have in multiproduct environment better explanation power. Our empirical findings give support for this – number of production lots explain in production environment manufacturing lead time much better than production order size. Further support is gained from supply chain phases, which are analyzed similarly, but as surprise explanation power of production lots decreases, and seems to be significantly lower in more distant markets. It is interesting to note that currently used IT applications of analyzed global case company do not give real time snapshot regarding to the development of overall supply chain lead time.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:igg:jisscm:v:2:y:2009:i:4:p:63-79

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