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Information processing structures and decision making delays in MRP and JIT

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  • Wang, Hui
  • Gong, Qiguo
  • Wang, Shouyang

Abstract

Prior literature has asserted that higher supply chain visibility, concerned with better information flow and determining more accurate demand levels within the supply chain at a given time, improves decision-making efficiency. Decision-making efficiency denoted by decision-making delay is in turn dependent on the information processing structure. Different production control systems have different information processing structures. This paper considers the relations between the production control system (MRP and JIT) and the organization structure of information processing that determines the decision making delay. We compare MRP and JIT across different information processing structures and decision efficiency, and find that JIT is suitable for small lot size and large variety production and MRP for large lot size and small variety production. In addition, an optimized organization structure of information processing will surely reduce the decision making delay.

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  • Wang, Hui & Gong, Qiguo & Wang, Shouyang, 2017. "Information processing structures and decision making delays in MRP and JIT," International Journal of Production Economics, Elsevier, vol. 188(C), pages 41-49.
    • Handle: RePEc:eee:proeco:v:188:y:2017:i:c:p:41-49
    DOI: 10.1016/j.ijpe.2017.03.016
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    2. Ziyang Li & Qianwei Ying & Wu Yan & Chenjun Fan, 2022. "Does just‐in‐time adoption have an impact on corporate innovation: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1599-1635, April.
    3. Ruiz-Hernández, Diego & Menezes, Mozart B.C. & Amrani, Aicha, 2019. "An information-content based measure of proliferation as a proxi for structural complexity," International Journal of Production Economics, Elsevier, vol. 212(C), pages 78-91.
    4. Nelson Duarte, 2018. "Systemy informatyczne w przemyśle: perspektywa dostawcy," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 49, pages 465-476.
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    6. Ahmad A. Mumani & Ghazi M. Magableh & Mahmoud Z. Mistarihi, 2022. "Decision making process in lean assessment and implementation: a review," Management Review Quarterly, Springer, vol. 72(4), pages 1089-1128, December.

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