Impact of electronic data interchange technology on quality improvement and inventory reduction programs: a field study

Article Abstract:

A study of the impact of electronic data interchange (EDI) technology on manufacturing performance provides evidence of the technology's favorable influence. The study was conducted at LTV Steel, one of the major steel producers in the US. The effectsof routine and exception EDI transactions on the quality improvement and inventory reduction program of 65 outside processors employed by the company were analysed. Results indicate that performance improves with higher quality and lower inventory. EDI transactions were also proven to achieve synchronized manufacturing and mitigate the negative impact of process uncertainties.

Blast furnaces and steel mills, Data processing and preparation, Cold finishing of steel shapes, Management, Usage, Steel industry, Total quality management, LTV Steel Company Inc.

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Electronic data interchange and inventories

Article Abstract:

The effect of electronic data interchange (EDI) on business enterprises was analyzed. EDI is evaluated particularly with regard to its impact on reduced lead time, reduced uncertainty during lead time and reduced ordering cost. The results show that EDI effectively lowers the total inventory management cost and complements the implementation of just-in-time inventory systems. The total cost of the inventory system is determined by the service level.

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Heavy-traffic inventory-production systems

Article Abstract:

Multi-commodity inventory-production systems with two types of customers are studied in heavy-traffic conditions with the aim of obtaining optimal performance. The heavy-traffic situations for single and multiple commodity systems demonstrated that diffusion approximation allows for the evaluation of systems characteristics for optimization. The method allows study of the problem from a warehouse or overall view.

Warehousing

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