IDEAS home Printed from https://ideas.repec.org/a/igg/jisscm/v1y2008i1p1-14.html
   My bibliography  Save this article

Balancing Accuracy of Promised Ship Data and IT Costs

Author

Listed:
  • Young M. Lee

    (IBM T.J. Watson Research Center, USA)

Abstract

In an ideal e-business environment, when a customer order is scheduled and a ship date is computed, the availability should immediately be reserved and not be available for future orders. However, in reality the availability data that are used for the scheduling the orders are not real time availability (physical availability), but they are availability information stored in an IT system (system availability). The availability data in the IT system (static view of availability) is typically refreshed (synchronized with real time availability) only periodically since it is very expensive to update the database in real time. Due to this potentially inaccurate view of the availability, some orders cannot be shipped on the promised ship date. Therefore, for certain customer orders, products are shipped later than the promised ship date resulting in customer dissatisfaction. Therefore, one of key decisions in order fulfillment process is to properly balance IT system (e.g., IT expense) and accuracy of promised ship date. In this work, we study how availability fresh rate (IT system) impacts customer service level. The simulation model we develop helps making critical business decision on refresh rate of availability, and avoiding expensive IT investment.

Suggested Citation

  • Young M. Lee, 2008. "Balancing Accuracy of Promised Ship Data and IT Costs," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 1(1), pages 1-14, January.
    • Handle: RePEc:igg:jisscm:v:1:y:2008:i:1:p:1-14
    as

    Download full text from publisher

    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/jisscm.2008010101
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:igg:jisscm:v:1:y:2008:i:1:p:1-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journal Editor (email available below). General contact details of provider: https://www.igi-global.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.