Monday September 01, 2008 On The Margins
(Masood Mortazavi)
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Monday September 01, 2008
[ Business ]
Time Delays
In Competing Against Time: How Time-Based Competition is Reshaping Global Markets, George Stalk, Jr. and Thomas M. Hout wrote:
Distortion between actual demand and perceived demand plague most businesses today. To escape them, companies have a choice. They can produce to forecast and try to ignore the reverberation that would cause them to do otherwise, or they can reduce the time delays in the flow of information and product through the system. The traditional solution is to produce to forecast...The new solution is to reduce the consumption of time throughout the system.
Managing time and information in supply chains have improved considerably since Stalk and Hout wrote their 1990 book. Bullwhip effect remains universally and as well-recognized (starting with ideas rooted in Jay W. Forrester's work) as in 1990. It is also known that even in the case of perfect information flow up a supply chain, some amplification of oscillations will continue to propagate upstream of any supply chain, and the only control action that remains (in a world of "perfect" information flow) is still the reduction of time delays, some of which will continue to survive due to the physical conditions of lived time and space. It still takes time to transport goods from point A to point B.
2008-09-01 01:18:13.0 --
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I work at Sun Microsystems. The opinions expressed here are purely my own, and neither Sun nor any other party necessarily agrees with them.Coordinates
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