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A supply chain is "a system through which organizations deliver their products and services to their customers" (Poirier & Reiter, 1996). This chain is a network of interlinked organizations that have a common purpose: to achieve the best possible means of
DeLone & McLean (1992) present an IS success model that has been cited many times over the
dimension involves measures for SC link effectiveness. When the performance criteria are
A model is developed that incorporates the SC and IS (electronic SC) organizational performance. Each SC link's (replenishment) effectiveness can be measured by the
inventory level, order cycle,
The research model is presented in
. Each link in the SC (supplier, manufacturer, distributor, retail outlet, and customer) could be examined in relation to inventory level, order cycle, and availability; however, the present research study focuses on the
distributor-retail outlet link
retail outlet-customer link.
For example, for the distributor-retail outlet link, the order cycle and inventory level are measured. The order cycle is reflective of the distributor used to replenish products. The order cycle will have an affect on the inventory level for the retail outlet and availability of products to the customers (end users). The inventory level is the on-hand quantity of the retail outlet. Therefore, for the retail outlet-customer link, the inventory level held by the retail outlet and the availability of products to the customers are measured. In SC link terms, the effectiveness measures are reflected as
Figure 1: Research Model
Theory suggests that an electronic SC should benefit the retail organization by allowing it to hold less inventory, have shorter order cycles (resulting in less on-order at any given time because should be holding less inventory), and having greater availability of products (resulting in more units sold) (Bowersox, 1974; Harrington et al., 1991; Iyer & Bergen, 1997; Rose, 1979; Strader et al., 1999). When the organization can replenish from its own distribution centers versus outside (third party) distribution centers, one would believe that the organization would have more control, and therefore benefit more, using its own distribution centers. However, in the early stages of electronic retailing, the organization may not see the full benefits of an electronic SC.
For inventory management and buying habits for
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