An empirical study of impacts of production mix, product route efficiencies on operations performance and profitability: a reverse logistics approach

This research studies the impact of two reverse logistics business strategies on profitability of the firm through operations management (OM). The study is employed on scrap steel industry. The first strategy is production mix efficiency (PME), which is involved in the process of producing goods. The second strategy is product route efficiency (PRE), which engages in the transportation of goods. Our finding indicates that OM alone does not have a positive impact on profitability. However, the two strategies have a positive effect on profitability, which provides a potential answer to firms trying to improve profitability.

[1]  Sergio Rubio,et al.  Characteristics of the research on reverse logistics (1995–2005) , 2008 .

[2]  M. I. M. Wahab Measuring machine and product mix flexibilities of a manufacturing system , 2005 .

[3]  B. Williams,et al.  Operations management. , 2001, Optometry.

[4]  Charles W. McNichols,et al.  An Integrative, Experiential Approach to Production Management Education , 1989 .

[5]  R. Banker,et al.  Relevant costs, congestion and stochasticity in production environments , 1988 .

[6]  Frederic H. Murphy,et al.  MANAGING REVERSE LOGISTICS CHANNELS WITH DATA ENVELOPMENT ANALYSIS , 2003 .

[7]  B. Jaggi,et al.  AN EXAMINATION OF THE IMPACT OF POLLUTION PERFORMANCE ON ECONOMIC AND MARKET PERFORMANCE: PULP AND PAPER FIRMS , 1992 .

[8]  Nigel Slack,et al.  The Flexibility of Manufacturing Systems , 1987 .

[9]  Andrew Whinston,et al.  Option Contracts and Capacity Management—Enabling Price Discrimination under Demand Uncertainty , 2007 .

[10]  Bei Wang,et al.  Reverse Logistics , 2004 .

[11]  George Foster,et al.  Manufacturing overhead cost driver analysis , 1990 .

[12]  Javier Faulin,et al.  The DSS LOGDIS Optimizes Delivery Routes for FRILAC's Frozen Products , 2005, Interfaces.

[13]  Kim B. Clark,et al.  Explaining Observed Productivity Differentials Between Plants: Implications for Operations Research , 1985 .

[14]  Shannon W. Anderson,et al.  Direct and Indirect Effects of Product Mix Characteristics on Capacity Management Decisions and Operating Performance , 2001 .

[15]  William W. Cooper,et al.  Accounting for complexity in costing high technology manufacturing , 1995 .

[16]  Leslie A. Hayduk Structural equation modeling with LISREL: essentials and advances , 1987 .

[17]  Shad Dowlatshahi,et al.  Developing a Theory of Reverse Logistics , 2000, Interfaces.

[18]  Aleda V. Roth,et al.  DESIGNING AND MANAGING SERVICE OPERATIONS: INTRODUCTION TO THE SPECIAL ISSUE , 2009 .

[19]  Chad W. Autry Formalization of reverse logistics programs: A strategy for managing liberalized returns , 2005 .

[21]  K. W. Palmer Iron and steel scrap , 1979 .

[22]  Mohamed E. Bayou,et al.  Analyzing the product‐mix decision by using a fuzzy hierarchical model , 2005 .

[23]  Chad W. Autry,et al.  REVERSE LOGISTICS: THE RELATIONSHIP BETWEEN RESOURCE COMMITMENT AND PROGRAM PERFORMANCE , 2001 .

[24]  S. Dowlatshahi,et al.  A strategic framework for the design and implementation of remanufacturing operations in reverse logistics , 2005 .

[25]  Hans W. Gottinger A computational model for solid waste management with application , 1988 .

[26]  Nagraj Balakrishnan,et al.  Environmental considerations on the optimal product mix , 2005, Eur. J. Oper. Res..

[27]  P. Daugherty,et al.  Reverse logistics: superior performance through focused resource commitments to information technology , 2005 .

[28]  Yadong Luo,et al.  Creating Competitive Advantages Through New Value Creation: A Reverse Logistics Perspective , 2007 .

[29]  R. P. McDonald,et al.  Structural Equations with Latent Variables , 1989 .

[30]  K. Srinivasan,et al.  Broader product line: a necessity to achieve success? , 1990 .

[31]  Chad W. Autry,et al.  Reverse logistics : the impact of timing and resources , 2004 .

[32]  Karl G. Jöreskog,et al.  Lisrel 8: Structural Equation Modeling With the Simplis Command Language , 1993 .

[33]  Xianggui Qu,et al.  Multivariate Data Analysis , 2007, Technometrics.

[34]  R. Giuntini An introduction to reverse logistics for environmental management: A new system to support sustainability and profitability , 1996 .