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  • 1. Alnestig, Peter
    et al.
    Segerstedt, Anders
    Product costing in ten Swedish manufacturing companies1996In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 46-47, p. 441-457Article in journal (Refereed)
    Abstract [en]

    This paper presents the main results from case studies in 10 Swedish manufacturing companies concerning their product costing. The main purpose of the study is to find out what models of product costing the companies use, what allocation bases are applied. Several questions have been asked to the companies: What is the purpose of the product costing? Is a special product costing used for inventory valuation? Is full costing or variable costing used? How are depreciation costs and cost of capital treated? Is some sort of activity-based costing used? If so, which arethe cost drivers? The study is a case analysis, no questionnaires are used. The study presents arguments that a separation of product costing in “Activity-Based Costing” or “traditional costing” is not possible, but also that more “ABC-thinking” is necessary.

  • 2.
    Axsäter, Sven
    et al.
    Department of Industrial Engineering, Lund University.
    Forsberg, Rolf
    Zhang, Wen-Fa
    Luleå tekniska universitet.
    Approximating general multi-echelon inventory systems by Poisson models1994In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 35, no 1-3, p. 201-206Article in journal (Refereed)
    Abstract [en]

    We consider a continuous review two-level inventory system with a central warehouse and a number of retailers. The demand processes at the retailers are different compound Poisson processes. We present and evaluate an approximate optimization technique, where the real demand is replaced by "equivalent" Poisson demand such that the ratio between mean and standard deviation is the same as for the real distribution. The solution of the Poisson model is then scaled back to the original problem.

  • 3.
    Axsäter, Sven
    et al.
    Lunds universitet.
    Juntti, Lars
    Luleå tekniska universitet.
    Comparison of Echelon Stock and Installation Stock Policies for Two-Level Inventory Systems1996In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 45, no 1-3, p. 303-310Article in journal (Refereed)
    Abstract [en]

    It is previously known that echelon stock reorder point policies dominate installation stock reorder point policies for serial and assembly multi-level inventory systems. This paper presents worst-case results for the relative cost difference in case of constant demand and no backorders. Furthermore, we analyze distribution systems with stochastic demand by simulation. Depending on the structure of the system either echelon stock or installation stock policies may be advantageous

  • 4. Axsäter, Sven
    et al.
    Juntti, Lars
    Luleå tekniska universitet.
    Comparison of echelon stock and installation stock policies with policy adjusted order quantities1997In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 48, no 1, p. 1-7Article in journal (Refereed)
    Abstract [en]

    Echelon stock and installation stock reorder point policies for multi-level inventory control have been compared in previous studies. It is known that echelon stock policies dominate installation stock policies for serial and assembly systems. Earlier comparisons assume that both policies use the same given order quantities, while each policy is optimized with respect to its reorder points. This paper presents worst case results for the cost ratio when the order quantities can be optimized for each policy.

  • 5. Bergström, Max
    et al.
    Stehn, Lars
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
    Integrated design and production of multi-storey timber frame houses: production effects caused by customer-oriented design2002In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 77, no 3, p. 259-269Article in journal (Refereed)
    Abstract [en]

    This paper presents the results from an ongoing R and D project aiming for an industrialised development of a multi-storey timber frame house system. The development was conducted systematically using methods from concurrent engineering (CE) focusing on the customer satisfaction and production-design problems/possibilities. A Swedish SME building company was investigated from the viewpoint of customer orientation, production and design of multi-storey timber frame houses. The company uses industrial fabrication of volumes. The aim was to analyse how the production can benefit from an integration of a customer-oriented design and production. First, a model based on the QFD method is proposed on how requirements from customers, i.e., tenants, can be taken into account in the design process and how CE can be adapted to a SME design process. Second, a preliminary model is proposed considering disturbances and relative cost effects on the production due to changes in the design solutions. The presented model aims to predict the total cost for a customer affected design on the used building system to forecast the costs for the main contractor and building owner for a similar integrated design in the future. All observations are based on case studies of the design process and the industrialised production of a three-storey timber frame house with three different floor designs.

  • 6. Bergström, Max
    et al.
    Stehn, Lars
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
    Matching industrialised timber frame housing needs and enterprise resource planning: a change process2005In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 97, no 2, p. 172-184Article in journal (Refereed)
    Abstract [en]

    The potential for improvements in industrialised housing through the adoption of concepts like enterprise resource planning (ERP) from the manufacturing industry, as applied to small and medium-sized enterprises, is evaluated in this paper. Four single, consecutive case studies were performed at a Swedish medium-sized industrialised housing company. The findings suggest that ERP can meet industrialised housing needs as well as promote an organisation to be re-engineered through comprehensive change and act as a driver for a more efficient internal and external supply chain.

  • 7.
    Brander, Pär
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Forsberg, Rolf
    Determination of safety stocks for cyclic schedules with stochastic demands2006In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 104, no 2, p. 271-295Article in journal (Refereed)
    Abstract [en]

    This paper considers the problem of scheduling the production of multiple items, each with random demand, on a single facility. We show how the variance in demand during lead time can be estimated and present a model for determination of safety stocks and order-up-to levels for a fixed cyclic sequence, both with and without idle time. For systems with idle time, we present a control model to make the decision to produce next item in sequence or idle the facility. The performance of the model is tested in a simulation study.

  • 8.
    Brander, Pär
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
    Forsberg, Rolf
    Safety stocks for cyclic schedules with stochastic operation times and setup times2007In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 108, no 1-2Article in journal (Other academic)
  • 9. Brander, Pär
    et al.
    Levén, Erik
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Lot sizes in a capacity constrained facility: a simulation study of stationary stochastic demand2005In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 93-94, no Spec. issue, p. 375-386Article in journal (Refereed)
    Abstract [en]

    This paper considers the scheduling of several different items on a single machine, in literature known as the economic lot scheduling problem, ELSP. One of the characteristics of this problem is that the demand rate is deterministic and constant. However, in a practical situation demand usually varies. In this paper we examine if a deterministic model can be used if demand is stationary stochastic. A dynamic programming approach from Bomberger (Manage. Sci. 12(11) (1966) 778) and a heuristic method from Segerstedt (Int. J. Production Econom. 59(1–3) (1999) 469) are used to calculate lot sizes for four items. The production of these items is simulated with different variations in demand rates. Our conclusion is that a deterministic model of this kind can be used in a practical situation where the demand rate is stationary stochastic, but the models must be complemented by a decision rule; which item to produce and when to produce it. In our tests the heuristic method and the dynamic programming approach perform rather similarly with respect to costs and inventory levels, but the dynamic programming approach results in more backorders when there is small variation in demand rates. This study indicates that the model used for determination of lot sizes is of less importance than the decision rule used for identification of the item to produce and when to produce it.

  • 10.
    Cenamor, Javier
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Rönnberg Sjödin, David
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Parida, Vinit
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Adopting a Platform Approach in Servitization: Leveraging the Value of Digitalization2017In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 192, p. 54-65Article in journal (Refereed)
    Abstract [en]

    This study explores how a platform approach facilitates the implementation of advanced service offerings in manufacturing firms. Understanding servitization through a platform approach is important because many manufacturing firms fail to manage the service paradox, that is, the challenge of simultaneously enriching the value proposition by adding services while maintaining cost levels. This study focuses on how adopting a platform approach leverages the value of digital and information technologies (e.g., smart and connected machines) for advanced service offerings. It is argued that a platform approach based on a modular architecture can enable manufacturers to pursue both customization and operational efficiency. Based on multiple case studies, the findings highlight the importance of information modules replacing product and service modules as the core modules for successful servitization. More specifically, the findings illustrates the journeys of manufacturing firms as they leverage value from information modules to facilitate the orchestrating role of back-end units and the builder role of front-end units.

  • 11. Chattopadhyay, G.
    et al.
    Larsson-Kråik, Per-Olof
    Hargreaves, D.
    Reddy, V.
    Modelling and analysis of rail maintenance cost2007In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 105, no 2, p. 475-482Article in journal (Refereed)
    Abstract [en]

    Lubrication at wheel flange and rails on sharp curves is considered as an effective solution for reducing wear loss of material from effective cross-section of rail and wheels. Rail administrations around the world have been increasing axle loads and traffic densities in rail networks. This has led to traffic initiated wear, fatigue initiated surface cracks and rail breaks. Limited research has been carried out on the overall impact of combining lubrication strategies and rail grinding. This paper presents a model for lubrication strategy and rail-grinding interval to reduce wear and rolling contact fatigue (RCF). Data from rail industry is collected and used for numerical illustration.

  • 12.
    Deleryd, Mats
    Luleå tekniska universitet.
    A pragmatic view on process capability studies1999In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 58, no 3, p. 319-330Article in journal (Refereed)
    Abstract [en]

    In recent years an increasing number of organisations use process capability studies on a regular basis. Contemporaneous with the increasing number of organisations using process capability studies, warnings have been launched that imprudent use of numerical measures of capability, the so-called process capability indices, might lead the user to make erroneous decisions. As a result, many practitioners of today are left with a somewhat ambivalent attitude towards process capability studies. In order to reduce these ambiguities, this paper outlines the advantages and disadvantages of the method. The results presented are based on a survey performed among 97 Swedish organisations that use process capability studies on a regular basis

  • 13.
    Fundin, Anders
    et al.
    School of Innovation, Design and Engineering, Mälardalen University.
    Bergquist, Bjarne
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Eriksson, Henrik
    Department of Technology Management and Economics, Chalmers University of Technology.
    Gremyr, Ida
    Department of Technology Management and Economics, Chalmers University of Technology.
    Challenges and propositions for research in quality management2018In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 199, p. 125-137Article in journal (Refereed)
    Abstract [en]

    From its inception, the field of quality management (QM) has been characterised by practice-driven development. Although QM has reached maturity as a field of research based on empirical enquiry, its practitioners still struggle to adapt QM implementations to reap their benefits. This study aims to identify their challenges to better understand how contemporary QM research addresses them. We propose approaches to bridge the potential relevance gaps between research and practice. A Delphi study of QM practitioners in Swedish private and public organisations, several of which operate globally, generated 49 challenges. An exploratory factor analysis was performed to cluster these challenges into themes, and the literature was reviewed to investigate how each theme has been addressed in QM research. The empirical investigation identified three themes related to future QM challenges—organisations' adaptability to rapid changes in the business environment, quality as a strategic concern for business owners, and managerial ownership of quality. By analysing these challenges, six propositions for future research were proposed to reduce potential relevance gaps. Future research should focus on how to make QM a strategic concern for owners, and explore how it can contribute to organisational ambidexterity and adaptability. Research should also determine how context influences the way QM is applied, and investigate how it can improve organisational learning and innovation. Finally, research should indicate how top managers can adopt the responsibilities of quality managers, and explore the ways the principal values of QM can be better integrated into organisations.

  • 14. Hageback, Charlotte
    et al.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    The need for co-distribution in rural areas: a study of Pajala in Sweden2004In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 89, no 2, p. 153-163Article in journal (Refereed)
    Abstract [en]

    To be a part of a supply chain network a company competing on the global market must mostly show short lead times and deliver at the right time. Is this really possible for a company placed in a rural or sparsely populated area? Pajala, a village and a municipality in the north of Sweden, has 7500 inhabitants in an area of 7900 km2 which means one inhabitant per km2. The number of inhabitants in the municipality of Pajala is decreasing. To stop this problem, Pajala needs more work opportunities and therefore they need more successful companies. Approximately 20 different conveyers/suppliers transport goods to and from companies in Pajala. But most of the conveyers/suppliers transport goods only once a week. Companies in Pajala, to be able to compete and be a part in a supply chain and a chain that competes with other supply chains, should have the opportunity to send and receive goods any day they want for shortening the delivery times to customers. One solution to this may be co-distribution. Co-distribution means that different conveyers/suppliers transport their goods in only one truck that goes for example in this case to and from Pajala. A preliminary study has been performed in Pajala to investigate if co-distribution has any benefits in rural areas. We find that the companies receive and distribute goods with a low frequency and that the trucks carrying loads to and from Pajala are often loaded less than 50%. This implies that to lower transportation costs and increase delivery services some sort of co-distribution is necessary to strengthen the capability of competing for the companies in Pajala. We have here studied specifically Pajala but we are convinced we would find almost the same result if we had studied other municipalities in rural areas of Sweden.

  • 15.
    Holmbom, Martin
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Economic Order Quantities in Production: From Harris to Economic Lot Scheduling Problems2014In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 155, p. 82-90Article in journal (Refereed)
    Abstract [en]

    This article provides a short historical overview from Harris and his Economic Order Quantity (EOQ) formula to the Economic Lot Scheduling Problem (ELSP). The aim is to describe the development of the ELSP field from the EOQ formula to the advanced methods of today in a manner that suits master and graduate students. The article shows the complexities, difficulties and possibilities of scheduling and producing several different items in a single production facility with constrained capacity. The items have different: demand, cost, operation time and setup time. Setup time consumes capacity and makes the scheduling more complicated. Idle time makes the scheduling easier but is bad from a practical point of view since it creates unnecessary costs due to low utilisation of the facility. A heuristic solution method is used on a small numerical example to illustrate different solution approaches. The solution method creates a detailed schedule and estimates the correct setup and inventory holding cost even if the facility works close to its capacity.

  • 16. Levén, Erik
    et al.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Inventory control with a modified Croston procedure and Erlang distribution2004In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 90, no 3, p. 361-367Article in journal (Refereed)
    Abstract [en]

    This paper considers an inventory control system, primarily for a finished goods inventory. The purpose is to create a procedure that can handle both fast-moving items with regular demand and slow-moving items. The suggested procedure should be easy to implement in a modern computerized ERP-system. Essentially, the system is a periodic review system built around a Croston forecasting procedure. An Erlang distribution is fitted to the observed data using the mean and variance of the forecasted demand rate. According to probabilities for stock shortages, derived from the probability distribution, the system decides if it is time to place a new order or not. The Croston forecasting method is theoretically more accurate than ordinary exponential smoothing for slow-moving items. However, it is not evident that a Croston forecasting procedure (with assumed Erlang distribution) outperforms ordinary exponential smoothing (with assumed normal distribution) applied in a “practical” inventory control system with varying demand, automatically generated replenishment, etc. Our simulation study shows that the system in focus will present fewer shortages at lower inventory levels than a system based on exponential smoothing and the normal distribution.

  • 17.
    Lundmark, Robert
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.
    Olsson, Anna
    Factor substitution and procurement competition for forest resources in Sweden2015In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 169, p. 99-109Article in journal (Refereed)
    Abstract [en]

    The utilisation of forest resources in the energy sector has been increasing, partly caused by economic policies introduced to reduce the emission of greenhouse gases. This in turn has led to an increase in the procurement competition between the forest industries and the energy sector. A translog cost function approach is used to analyse the factor substitution in the sawmill industry, the pulp and paper industry and the heating industry in Sweden over the period 1970–2008. The estimated parameters are used to calculate the Allen and Morishima elasticities of substitution as well as the price elasticities of input demand. The results indicate that it is easier for the heating industry to substitutes between by-products and logging residues than it is for the pulp and paper industry to substitute between by-products and roundwood. This suggests that the pulp and paper industry could suffer from an increase in the procurement competition. However, overall the substitutions elasticities estimated in our study are relatively low. This indicates that substitution possibilities could be rather limited due to rigidities in input prices. This result suggests that competition of forest resources also might be relatively limited.

  • 18.
    Lundmark, Robert
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.
    Söderholm, Patrik
    Estimating and decomposing the rate of technical change in the Swedish pulp and paper industry: A general index approach2004In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 91, no 1, p. 17-35Article in journal (Refereed)
    Abstract [en]

    The purpose of this paper is to analyse the rate and the impacts of technical change in the Swedish pulp and paper industry. In contrast to earlier research on this industry we replace the standard time trend with time-specific dummy variables enabling the estimation and decomposing of a general index of technical change. The analysis is made within a Translog cost function model, which is estimated using a panel data set with observations across individual paper and board mills over the time period 1974–1994. Our results indicate that the highest rates of technical change have generally occurred during the latter part of this period. Pure technical change is the primary component that has directed technical change over the entire time period. We also find evidence of non-neutral technical change. Energy use has been stimulated by technical improvements while labour use has been discouraged. Also, technical change has had wastepaper and woodpulp using impacts. However, the magnitudes of these latter impacts are relatively small, implying that the increase in wastepaper use during the last decades has mainly been stimulated by relative price changes.

  • 19.
    Maiga, Adam S
    et al.
    Columbus State University.
    Nilsson, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Ax, Christian
    Handelshögskolan, Göteborg.
    Relationships between internal and external information systems integration, cost and quality performance, and firm profitability2015In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 169, p. 422-434Article in journal (Refereed)
    Abstract [en]

    This paper proposes that the impact of information systems (IS) integration on manufacturing firm profitability is underestimated as a result of inadequate attention to indirect effects. The study uses structural equation modeling to investigate the associations among internal and external information system integration, quality and cost performance, and firm profitability. Overall, the results from a mail survey of 263 member firms of the Institute for Supply Management support the theoretical model. Results indicate that (a) internal IS integration has a significant positive association with external IS integration, (b) both internal IS integration and external IS integration are significantly positively associated with cost and quality performance, (c) quality performance is significantly positively associated with cost performance, and (d) both quality and cost performance have significant positive associations with firm profitability. However, the direct effects of internal and external IS integration on firm profitability are not significant. Rather, the association is through cost and quality performance, suggesting that both cost and quality performance act as intervening variables. This study extends the literature on IS integration by providing insights into a set of interrelationships that matters for the attainment of firm profitability from IS integration

  • 20. Nilsson, Andreas
    et al.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Sluis, Erik van der
    University of Amsterdam.
    A new iterative heuristic to solve the joint replenishment problem using a spread-sheet technique2007In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 108, no 1-2, p. 399-405Article in journal (Refereed)
    Abstract [en]

    In this paper, a heuristic method is presented which gives a novel approach to solve joint replenishment problems (JRP) with strict cycle policies. The heuristic solves the JRP in an iterative procedure and is based on a spreadsheet technique. The principle of the recursion procedure is to find a balance between the replenishment and inventory holding costs for the different items by adjusting the replenishment frequencies. The heuristic is also tested according to an extensive test template and shows pleasing results. It also performs well in comparison with many other heuristics.

  • 21.
    Olsson, Richard
    Luleå tekniska universitet.
    Subcontract Coordination in Construction1998In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 56-57, p. 503-509Article in journal (Refereed)
    Abstract [en]

    The building industry in Sweden has for the last five years been under hard pressure to reduce costs, and lead times, while at the same time improving quality. During this period the range of services such as air distribution, heating, cooling and electrical systems has continued to increase, creating more complex buildings. Today, we encounter problems with communication, boundaries between subcontractors, too many people in the same place at the wrong time and too little emphasis on the testing phase. In order to meet customer's expectations, to have a fully functional and tested product at a given time, several main contractors in Sweden have started to use a special subcontract coordinator in an effort to reduce problems.The case study method was used to find out how the subcontract coordinator was working, where in the organisation he should be placed and what he adds to the construction process. Studies have been conducted on several types of building projects, varying organisations and geographically spread projects.The need for the subcontract coordinator is clearly stated among all types of participants. The function adds a more holistic outlook in scheduling, communication, troubleshooting and performance testing before project completion. The aim of this study is to provide a guideline for the coordinator's work. The results can be used to achieve a smoother construction phase with a successful project close-out.

  • 22.
    Palage, Kristoffer
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.
    Lundmark, Robert
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.
    Söderholm, Patrik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.
    The impact of pilot and demonstration plants on innovation: The case of advanced biofuel patenting in the European Union2019In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 210, p. 42-55Article in journal (Refereed)
    Abstract [en]

    The objective of this paper is to investigate how pilot and demonstration plants affect innovation in the empirical context of advanced biofuel technology. Patent counts are used as a proxy for innovation; we employ data for eight EU Member States over the time-period 1980–2011, and negative binomial regression techniques. The focus is on plant investments that have received public co-funding. The results are overall robust to alternative model specifications, and show that the knowledge generated through past investments in pilot and demonstration plants has had positive effects on advanced biofuel patenting activities. This result is particularly valid for so-called experimental plants, i.e., aiming at testing the technical viability of new technology. The empirical analysis does not indicate the presence of any positive interaction between investments in experimental plants and biofuel blending policies, i.e., in the sense that more stringent blending requirements can raise the rate-of-return on additional pilot tests. Moreover, advanced biofuel innovation is also affected through knowledge spillovers across the selected EU Member States. The paper ends by outlining avenues for future research on the role of pilot and demonstration plants in technology development.

  • 23.
    Partanen, Jukka
    et al.
    University of Vaasa, Department of Management, Helsinki, Finland.
    Kohtamäki, Marko
    University of Vaasa, School of Management / University of South-Eastern Norway, USN Business School , Vaasa, Finland.
    Patel, Pankaj C.
    Villanova School of Business, Villanova University, Villanova, PA, USA.
    Parida, Vinit
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering. School of Management, University of Vaasa, Vaasa, Finland.
    Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow2019In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579Article in journal (Refereed)
    Abstract [en]

    Organizational ambidexterity is the simultaneous act of exploiting existing competences and exploring new opportunities. Prior studies suggest that resource-constrained SMEs cannot successfully pursue simultaneous interorganizational ambidexterity but need to rely on functionally separated alliances (i.e., alliances based on their value chain function such as explorative R&D alliances or exploitative commercialization alliances) to achieve ambidexterity. Yet, others propose that ambidexterity can occur within the functional domain of a supply chain. We investigate the relationships among supply chain ambidexterity, network capabilities, strategic information flow, and firm performance. In a sample of manufacturing SMEs in Sweden, we hypothesize the direct association between supply chain ambidexterity and performance and the moderating effect of network capabilities and strategic information flow. By testing our hypotheses in a sample of 200 manufacturing SMEs, we show that supply chain ambidexterity decreases firm performance; however, network capabilities and strategic information flow with their supply chain partners help mitigate this negative relationship. The present study advances understanding of ambidextrous interorganizational collaboration and alliances in general and supply chain ambidexterity of manufacturing SMEs in particular. In contexts where supply chain ambidexterity is negatively associated with performance, network capabilities and strategic information flow may be necessary to lower the negative effects.

  • 24.
    Pettersen, Jan-Arne
    et al.
    Narvik University College, 8505 Narvik, Norway.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Restricted work-in-process: a study of differences between Kanban and CONWIP2009In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 118, no 1, p. 199-207Article in journal (Refereed)
    Abstract [en]

    This article presents a simulation study over a small supply chain, where the amount of work-inprocess (WIP) is restricted. The supply chain consists of five linked machines, or production facilities, with stochastic operation times. A number of test cases are made where the number of jobs in the machines and the buffer areas are restricted. The restrictions are designed both in the Kanban way, linked to every machine, and in the CONWIP way, connected only to the total production line. But no Kanban-cards and no Kanban-cells are involved in our study, just restricted inventories between the machines. With the same amount of limited WIP, CONWIP control compared to Kanban control presents a higher throughput rate, less time between jobs out, but the jobs stay on average longer in the system. The stochastic operation times cause that the upstream machine sometimes consumes the jobs in a rate that the downstream machine does not catch up with, therefore all available storage room temporarily are not used. Kanban and CONWIP control presents the same amount of average outflow per time unit with the same variation in operation times and with the same amount of real average WIP. But Kanban control causes a lower utilisation of present available storage room and storage equipment than CONWIP. The user of Kanban and CONWIP can only control maximum WIP and not average WIP; average WIP is a consequence of existing variations, so the difference is important. The coefficient of variation of the lead-times increases when WIP increases; this is very difficult to handlein practical applications. Restricted WIP that shortens the lead-time and decreases its variation is more important than if it is a "push" or "pull" system. Finally it is argued that CONWIP control is to prefer over Kanban control in theory, but in practice there is a lack of CONWIP installation guidelines.

  • 25.
    Pettersson, Annelie
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Measuring supply chain cost2013In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 143, no 2, p. 357-363Article in journal (Refereed)
    Abstract [en]

    Organisations focus on reducing costs in their supply chains to increase net income. In order to reduce costs a company needs to know how to measure Supply Chain Cost (SCC). This paper is concerned with SCC and how measurements of SCC are and can be used in industry. The paper describes a suggested model for measuring SCC. Representatives from 30 companies in 10 different business sectors are interviewed about how they measure costs in their supply chains compared against this model. The focus is also on identifying the difference between SCC based on estimated standard cost compared to actual cost. A case study describes and shows the difference between measuring SCC based on calculated standard cost and measuring it based on actual cost. Our studies show that general thorough cost and supply chain analyses in many companies can be improved and further developed.

  • 26.
    Rabetino, Rodrigo
    et al.
    University of Vaasa, Department of Management.
    Kohtamäki, Marko
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Gebauer, Heiko
    Eawag – Swiss Federal Institute of Aquatic Research.
    Strategy map of servitization2017In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 192, p. 144-156Article in journal (Refereed)
    Abstract [en]

    By representing the servitization of three leading corporations via a strategy map, this multiple-case study discusses how the strategic logic of servitization can be explained by linking the key practices adopted by manufacturers to support critical processes while shifting their focus to project-based customer solutions. The results draw on data collected from solution providers operating in the metal and machinery industries headquartered in Finland. By examining the strategic actions, tools, and processes behind the implementation of servitization, this study extends recent debates on the service-based business models of manufacturing companies. For servitization theory, this study develops a strategy map for a solution provider. For manufacturing firms, this study provides a framework and a tool for benchmarking, developing and implementing a strategy while mitigating the processes of long-term value creation and appropriation.

  • 27. Segerstedt, Anders
    A capacity-constrained multi-level inventory and production control problem1996In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 45, no 1-3, p. 449-461Article in journal (Refereed)
    Abstract [en]

    This paper presents a mathematical formulation of a capacity constrained multistage inventory and production control problem. It argues that most practical multistage inventory and production control problems can be summarised in the formulation. The model has a strong connection to the model of Billington, McClain and Thomas (1983) and is also inspired of a paper from Bard and Golany (1991). The revised Billington/McClain/Thomas model is formulated in a dynamic programming recursion. A numerical solution to a simple problem is presented. A scheduling problem concerning capacity constrained models are enlightened. Further, the paper points to differences and relationships between this capacity constrained model, MRP, Kanban and Cover-Time Planning.

  • 28.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    A simple heuristic for vehicle routing: A variant of Clarke and Wright’s saving method2014In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 157, no S1, p. 74-79Article in journal (Refereed)
    Abstract [en]

    Efficient collection and distribution of items are important because fewer resources and less energy would be used and this would help the world to be more sustainable. Many goods are always in transit. Efficient collection from storage racks and depots, and efficient distribution to retailers and customers, etc., will decrease transport inventories. The paper presents a variant of the Clarke and Wright’s saving method that is suitable for introducing the vehicle routing problem and the importance of efficient vehicle routing. The method uses only the first pair of calculated savings and uses these also when searching for complements or additions to an already decided route. The variant is simple, very fast and finds the best known solution to the Dantzig and Ramser (1959)–problem.

  • 29.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Corrigendum and a complement “A simple heuristic for vehicle routing: A variant of Clarke and Wright's saving method” [Int. J. Prod. Econ. 157 (2014) 74–79]2018In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 199, p. 104-106Article in journal (Refereed)
    Abstract [en]

    A simple heuristic for vehicle routing - A variant of Clarke and Wright's saving method (International journal of Production Economics, 157 (2014), 74–79) contains a mistake that must be corrected. But the mistake also allows for a possible improvement of the search procedure which is demonstrated. We emphasise that the chosen sequence of the distribution, clockwise or anti-clockwise, can highly influence the vehicles' fuel consumptions.

  • 30. Segerstedt, Anders
    Cover-Time Planning, a method for calculation of material requirements1995In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 41, no 1-3, p. 355-368Article in journal (Refereed)
    Abstract [en]

    This paper presents Cover-Time Planning, a method for calculation of material requirements. Cover-Time Planning resembles MRP but it lacks its automatic time-phasing ability. Basically Cover-Time Planning is a reorder point system based on demand rates and time instead of quantities.

  • 31.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Cover-Time Planning/Takt Planning: A technique for Materials Requirement and Production Planning2017In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 194, p. 25-31Article in journal (Refereed)
    Abstract [en]

    Cover-Time Planning, or Takt Planning, is presented. It is a system for calculating material requirements and start of purchases and production. Requested production rates of sales items, or alternative prefabricated modules in stock, are “broken down”, exploded, to create the need for components, for all underlying items (articles) in the Bill of Material. Inventory and already ordered replenishments are compared with the item's desired production rate. How long already made actions are expected to cover the desired expected sales and production rates is compared with the item's lead time; if a forward future shortage is likely the article is signalled for a refill. With examples is described how make-to-order production is done easily. The method is a type of reorder point system, but with time instead of quantity as decision variable. Unlike a traditional reorder point system increases and decreases of production can be planned. Future work load in various production sections can be estimated. It is described how an “Available-to-promise”-system should be designed and used. Cover-Time Planning (CTP) is a complete alternative to Materials Requirements Planning (MRP). CTP responds faster than MRP, since MRP for each structural level uses a batch size to "break down" and to magnify the need at the underlying level. In the end a large material acquisition needs to be ordered maybe just to build a single end item. CTP uses the end item requirement rates on all structural levels shifted with the lead times, when customer demand changes, the entire production chain react simultaneously

  • 32.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Forecasting slow-moving items and ordinary items: a modification of Croston’s idea2003In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 81/82Article in journal (Refereed)
  • 33. Segerstedt, Anders
    Formulas of MRP1996In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 46-47, p. 127-136Article in journal (Refereed)
    Abstract [en]

    This paper presents MRP in formulas. The usual presentation of the MRP-calculation in textbooks for operations management and production economics in tables are described here in formulas. In the MRP-calculation: first MRP reschedules already open orders to current gross requirements, then MRP calculates and time-phases planned orders to satisfy remaining gross requirements. The MRP-calculation can face an open order with a planned due date in past time, and where the real due date will be some period in the future. Such problems are seldom pointed out in textbooks, but the presented formulas must handle it and similar problems. The paper tries to postulate the “real” MRP-calculation. It is important that we define what we really mean when we talk about MRP, formulas are a supreme method for communication. Furthermore the paper points to the connections between MRP and input-output analyses. Definitions of inefficiencies related to MRP, “remnant stock” and “imbalance”, are discussed with used formulas.

  • 34. Segerstedt, Anders
    Inventory control with variation in lead times, especially when demand is intermittent1994In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 35, no 1-3, p. 365-372Article in journal (Refereed)
    Abstract [en]

    This paper presents a model for inventory control where variation in lead times is allowed. No reorder point is computed. The mean value and the variance for the time between withdrawals, the order size and the lead time are measured by exponential smoothing. These variables are assumed to be Gamma distributed. Together with the constants: the inventory on hand plus on-order, passed time since the last withdrawal and time to the next inspection; the probability for a shortage is calculated. If the probability is greater than the service level requires then a replenishment order must be placed.

  • 35. Segerstedt, Anders
    Lot sizes in a capacity constrained facility with available initial inventories1999In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 59, no 1-3, p. 469-475Article in journal (Refereed)
    Abstract [en]

    This paper presents an heuristic method for deciding what items and what order sizes to produce in a capacity constrained facility. The available inventories on hand decide in what order the production should be performed for avoiding shortages. The recursion procedure finds the same solution to the Bomberger (Management Science 12 (11) (1996) 778–784) problem as Doll and Whybark (Management Science 20 (1) (1973) 50–55).

  • 36.
    Wallström, Peter
    et al.
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Evaluation of forecasting error measurements and techniques for intermittent demand2010In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 128, no 2, p. 625-636Article in journal (Refereed)
    Abstract [en]

    When intermittent demand is concerned the Croston forecasting technique is mostly regarded as a better choice than single exponential smoothing. These two methods, Croston and single exponential smoothing, together with two modifications of the Croston method, are discussed and evaluated with real intermittent data. The apprehended performance of a forecasting technique is dependent of the chosen measurement of forecast errors. Our main purpose is to examine and evaluate different forecasting error measurements. Traditional measurements of forecast errors are studied, Mean Absolute Deviation (MAD), Mean Square Error (MSE) etc together with new suggested complementary error and bias measurements: "Periods in Stock" (PIS) and "Number of shortages" (NOS). PIS considers the time aspect of the forecast error, NOS considers the development of Cumulated Forecast Error (CFE). A complementary measure for descriptive statistics of time series is also suggested, Mean Average Change. The conclusion, through Principal Components Analysis (PCA), is that a single measure of forecast errors cannot present the total different dimensions of the errors. Complementary error measures should be used.

  • 37.
    Wijk, Olle
    et al.
    Systecon, Stockholm, Sweden.
    Andersson, Patric
    Systecon, Stockholm, Sweden.
    Block, Jan
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Operation, Maintenance and Acoustics. Saab Support and Services, Logistics Analysis and Fleet Monitoring, Lifecycle Logistics Division.
    Righard, Thord
    Systecon, Stockholm, Sweden.
    Phase-out maintenance optimization for an aircraft fleet2017In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 188, p. 105-115Article in journal (Refereed)
    Abstract [en]

    This paper presents a novel approach for cost-effective optimization of stop-maintenance strategies for a set of repairable items (rotables). The optimization method has two steps. First, the novel concept of matrix simulations is introduced to locate the solution space of the optimization problem in question. Second, a genetic algorithm is applied to find the minimum cost solution. The combination of matrix simulations and genetic algorithm is shown to constitute a powerful method for solving the optimization problem in a fast manner. To demonstrate the efficacy of the proposed method, it is compared with a crude search, and a steepest descent algorithm. Our proposed method is faster than the crude search and also locates the optimum more often than the steepest descent search. The method is illustrated by applying it to a phase-out scenario of an aircraft fleet, where the optimal stop-maintenance strategy is determined for a set of rotables.

  • 38.
    Zackrisson, Jesper
    et al.
    Luleå tekniska universitet.
    Franzén, M.
    Umeå University, Department of Statistics.
    Melbin, M.
    ABB Railcar AB.
    Shahnavaz, Houshang
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Human Work Science.
    Quality by a step-by-step program in low scale industries1995In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 41, no 1-3, p. 419-427Article in journal (Refereed)
    Abstract [en]

    This paper focuses on the effectiveness of the on-line QC in the low scale or experience industries. The basis of the study is the manufacturing process of trams in Sweden. The result indicates that the QC program demands a solid base to be effective from the beginning of its implementation. Empirical results show that during the off-line process the lead-time in the production was reduced by 50% and the mean cycle time of the storage is decreased by 33%. Formally, quality tools are investigated as regards the scale of the industry.

  • 39.
    Zhang, Qinhong
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Dong, Ming
    School of Management, Shanghai Jiao Tong University.
    Lou, Jianwen
    School of Management, Shanghai Jiao Tong University.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Supply Chain Coordination with Trade Credit and Quantity Discount Incorporating Default Risk2014In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 153, p. 352-360Article in journal (Refereed)
    Abstract [en]

    We explore the issue of supply chain coordination by considering trade credit and its risk. It shows that, in a retailer-manufacturer system, the manufacturer may deliver less than the retailer's order quantity when the payment is delayed, and the manufacturer's risk aversion makes this result hold in a wider range. These findings are different from the common sense believed in the retailer-manufacturer coordination literature, which suggests the manufacturer to entice the retailer to enlarge the lot size. The manufacturer's decision of decreasing the order quantity prevents the supply chain from operating in the optimal situation. In order to coordinate supply chain, we propose a modified quantity discount based on both order quantity and advance payment which means the manufacturer offers quantity discount if the retailer pays part of the payment in advance and enlarges her order quantity. The ranges of advance payment ratio and the quantity discount are derived. Numerical examples are used to demonstrate the conclusions.

  • 40.
    Zhang, Qinhong
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Tsao, Yun-Chung
    Department of Industrial Management, National Taiwan University of Science and Technology, Taipei.
    Liu, Biyu
    School of Economics and Management, Fuzhou University.
    Returnable packaging management in automotive parts logistics: dedicated mode and shared mode2015In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 168, p. 234-244Article in journal (Refereed)
    Abstract [en]

    We compare two different modes, i.e., dedicated mode and shared mode, used in packaging management in automotive parts logistics. In dedicated mode, every parts supplier uses his own packaging; while in shared mode, packages can be shared among the suppliers. For each mode, we calculate the total costs consisting of transportation cost and inventory holding cost, and prove that the total costs, the transportation cost and the inventory holding cost are all smaller under shared mode. We further illustrate the factors that influence the cost savings of shared mode, i.e., the total cost of dedicated mode minus that of shared mode. In particular, the cost savings are proved to be negatively related to the number of package categories, and are positively related to: (1) the demand gap of packages between areas, i.e., sum of the volume difference of every kind of packages that transported in and out of one area; (2) the failed ratio factor of the returned packages, i.e., the ratio of the packages that cannot be returned to the supplier because of broken, pilferage, misplace, etc.; and (3) the time savings of short distance transportation, i.e., the transportation time consumed between areas minus the transportation time within one area. Finally, numerical examples show that the cost savings can be considerable, and the number of package categories is the most important influence factor.

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