Product Characteristic Uncertainty in Supply Chains: Cases from the Food Industry
Abstract: The food industry is
a complex supply chain, where the path of a specific food product may vary and
the supply chains within the food industry may have different structures from
each other. Another important characteristic
of the food industry is the high frequency of new product introductions; this
increases choice for consumers and initiates uncertainty related to product
issues such as high product failure rates,
short product life
cycles and high
inventory holding costs.
Consequently, it is
important to understand product
characteristic as a source of supply chain uncertainty, how they can be managed
and the resulting impact on performance. This research presents a review of the
available literature on supply chain uncertainty and related fields, highlights
that although product characteristic has been identified as a source of uncertainty,
insufficient empirical evidence has been presented. Multi-case study research,
using semi-structured interviews, has been conducted across a group of
inter-related companies in the food industry in Indonesia to investigate the
role of product characteristic in creating uncertainty. The result of analysis
helps to refine the concept and provides a basis for detecting and managing
product characteristic uncertainty, critical
in the current competitive context.
Author: Eliot Simangunsong
Journal Code: jpmanajemengg120012

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