Business Development: Literature Review Critique Report

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This report provides a comprehensive critique of a literature review article titled "Information sharing for sales and operations planning: Contextualized solutions and mechanisms." The critique examines the article's main purpose, which is to establish the benefits of a robust system for sharing sales information to improve operations management. The report delves into key questions raised by the article, such as the benefits of information sharing and the challenges organizations face. It also analyzes the most important information presented, including secondary data from literature reviews and model-based studies, highlighting both the positive and negative aspects of information sharing. The critique further explores the main inferences, key concepts, and assumptions of the article, and their implications for operations management. The report concludes with a recommendation for the article to rely more on primary data. The critique emphasizes the importance of information sharing in operations planning and its impact on various aspects, such as new product introductions and supply chain management.
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Running head LITERATURE REVIEW CRITIQUE 1
LITERATURE REVIEW CRITIQUE
Name
Institution
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Table of Contents
Executive Summary.........................................................................................................................3
Main Purpose of the Article.............................................................................................................4
Key Questions for the Article..........................................................................................................4
Most Important Information............................................................................................................5
Main Inferences of the Article.........................................................................................................8
Key Concepts of the Article............................................................................................................9
Main Assumption.............................................................................................................................9
Implications...................................................................................................................................10
Conclusion and Recommendation.................................................................................................10
References......................................................................................................................................11
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Executive Summary
This paper aims to critique article journal titled” Information sharing for sales and
operations planning: Contextualized solutions and mechanism.” The article explains how shared
sales information can be used to improve operations management among the companies. The
paper commences by exploring the main purpose of the article. The paper finds that the authors
of the article have effectively linked its purpose with the operation management. Alternatively,
the paper analyzes the key questions, most important information, major inferences, key
concepts, major assumptions and implications arising from the article. Finally, the paper
concludes by recommending that the article should rely on primary data more than secondary
data.
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Main Purpose of the Article
The main purpose of this article is linked to its title "Information sharing for sales and
operations planning: Contextualized solutions and mechanisms” by (Kaipia, Holmstrom, Småro,
& Rajala, 2017). It strives to establish the benefits that accrue the organization when they design
a strong system that will facilitate the sharing of sales information with customers through well-
planned operations. The article notes that sharing sales information as from lower level as
retailer helps the organization to plan its operations based on the needs of the customer. The
article takes two examples to test the applicability of information sharing for sales and operations
planning between two organizations. In the first organization, where the management embraces
the sharing of sales information to build on operations derived more benefits. On the other side,
the organization that did use the approach of information sharing for sales to plan for its
operations appeared to suffer. Therefore, it is well evidenced that the main purpose of the article
links with the operations management which is the topic under discussion.
Key Questions for the Article
The major question arising from this article is whether relying on information sharing
with the customers helps the organization derive certain benefits. The article compares whether
introducing information sharing system in the sales and operations planning purpose produce or
not produce benefits for the organizations applying it. Secondly, another question in the article
aims to look how the existing challenges that face organizations that apply information sharing in
their sales and operations planning system.
Secondly, the key questions coming out from this article can be identified in the research gap.
Under this section, the article aims to determine how elaborative mechanisms can improve
expected outcomes from information sharing from the perspective of the manufacturers. Another
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question is how the manufacturer can take advantage of a point of sale information to improve
operations management. Lastly, there is a question on how the companies can use collaborative
sales and operations planning system to improve their operations management.
Most Important Information
Apart from the primary data that involves the author collecting the information himself,
the secondary is also important for the development of the article. In fact, the writing and
discussion of academic articles are largely linked to the existing information. Under this section,
this paper will analyze the secondary information that has been used by the authors of their
study. First, the article uses the secondary information to look at the challenges that befall
organizations which introduce information sharing in their sales and operations planning system.
The article has relied on literature review as the major source of its secondary
information. The literature review used in the article highlight the potential benefits as well as
the drawbacks that can face companies using information sharing in their operations planning
processes. In one of the secondary source in the article maintains that are a significant number of
benefits associated with the application on information sharing in sales and operations planning
management ( Márcio, Scavarda, Fernandez, & Scavarda, 2012). However, another information
goes further this study because not situations contribute to benefits as the result of data sharing.
Therefore, the benefits of information sharing will only be achievable in special situations.
Secondly, another source used in the article argues that not all products can be subjected
into information sharing. Also, if the organizations anticipate deriving benefits from this
approach of operations management they have to design different information sharing systems
for different products (Ellinger & Keller, 2010). The secondary data used in this article is
attributable to the topic of operations management. Therefore, it is doubtless that this article uses
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information that has a strong interconnection between information sharing for sales and
operations planning management.
Thirdly, the article was supported its position by using model-based studies from
secondary sources that explains the benefits gained by the organization depends on features of
the model and assumptions applied in the study (Gimenez, 2015). For example, the secondary
information noted that if the supplier uses a single retailer to evaluate the benefits of information
sharing may assume that sharing information will the customers helps the organization improve
its operations management. On the other hand, several studies used in the article assume that if
the organization have access to high demand, sufficient supply, and improved process data in the
supply chain the operation performance of the company will automatically improve. However,
this cannot work effectively without introducing the system of sharing information with the
customers and all other concerned parties.
Again, the article goes ahead to rely on the secondary data to argue that there are contexts
where benefits cannot be realized. For example, the authors of the article argue that in the event
where there is accurate forecasting, low inventory costs and short lead times contributes to
reduced risks even without employing information sharing in the operations planning. Kaipia,
Holmstrom, Småro, & Rajala (2017) looks at both positive and negative side of introducing
information sharing in the operations planning management.
Another secondary information used in the article supports that it is not a guarantee that
information sharing will contribute improved performance. However, this source assumed that
there is improved performance largely when information sharing is operational processes are
used within the company as well as between the participating companies. The Huge volume of
secondary information used in this article recognizes the importance of information sharing in
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operations planning. The majority of secondary sources argue that there are numerous benefits
when a collaborative sales and operations planning (S&OP) is applied (Godsell, 2010).
Several authors that have carried out studies used as the secondary sources in the article
argue that examination of the more collaborative sales and operations planning has a variety of
benefits for the organizations that apply it. For example, when the demand factor from the
customers’ side is known, the company will establish systems that will oversee improved retail
management promotions. This means that all the customers’ demands will be met satisfactorily.
Similarly, the company will reduce or prevent extra costs of producing goods that may not be
needed by the customers. Therefore, sharing sales information helps to improve the internal
operations of the company.
Another simulation study used in the article maintains that sudden change in demand
point on sale data is the important information for the manufacturer to consider (Harwell, 2012).
Similarly, the model-based study used in the article finds out that the value of information
sharing is very important for assessing retail replenishment for perishable products. However, the
author using the model-based study argue that value of information will depend on several
factors such as product price and demand variability.
The respondent survey has also been used in this article as a secondary source. The
author of the source containing the survey argues that supply chain dynamism is the subject of
valuable information (Holt, 2012). This means with sales sharing information it will be difficult
to evaluate and understand the dynamisms associated with supply chain processes. This makes
the management of the supply chain difficult because some of the internal operations do not
conform to the external demand as exhibited by the customers. However, with collaborative
planning, there is a high probability that the getting the demand forecasting correctly.
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Improving new product introduction has also relied on secondary sources as shown in
this article. The source used in article depicts that use of demand information helps the company
t forecast potential sales (Cauchois & Taghipour, 2016). This helps to avoid the challenging
situations that come with new products. For example, the velocity of sales and getting the
company new products being distributed to the international market becomes a big challenge.
However, with the introduction of information sharing for the sales in collaboration with
operations planning to helps the company to have prior knowledge about the customers’ demand
and needs. The application of information sharing eases the process of getting new product in the
market.
From the secondary information used in this article, it is quite evident that it has
effectively used secondary information that relates to operation management. The article has
looked at both sides of information sharing. For example, it has addressed the benefits associated
with information sharing as well the situation where the value of information sharing cannot
work (Cavusoglu, Cavusoglu, & Raghunathan, 2011). Again, the article has also considered
various studies and models that have carried out and developed respectively to undress the topic
under discussion. Therefore, it is indisputable that this article has effectively discussed the
sharing of sales information for operations planning about operation management.
Main Inferences of the Article
The major inference in this article depicts that there is an additional factor that is needed
for sales information sharing for operations planning. Likewise, there are more benefits
associated with the sales information sharing than there are drawbacks. However, the article also
pinpoints that not all companies enjoy the benefits of information sharing. Whether the company
will experience benefits from information sharing for operations planning depends on different
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Running head LITERATURE REVIEW CRITIQUE 9
factors and situations. For example, for the company dealing with multi-production processes
finds it more beneficial to rely on sales of point information than for the company dealing with
the single production process.
Another inference being exhibited in this article connote that companies need to have a
prior knowledge about expected outcomes before investing in acquiring the value of information.
Therefore, the company has to establish sufficient integration between sales and operations. If
the customers’ sales information shared with the supplier is low, and production planning cycles
are long, the value of a point on sale information may be non-existent or very small. Finally, the
article infers that there are bigger challenges when introduced a new product in the market.
However, with the application of the sales information sales for operations planning to get new
product in the market will be very easy.
Key Concepts of the Article
The writing of the articles is based on the concepts that influence the author to develop
his or her study from the beginning to the end. First, the article addresses the outcome that
manufacturers experience from employing sales information sharing for operations planning.
Secondly, the article strives to investigate the concept of how elaborative mechanisms can
contribute to the achievement of desired operations management outcome. Lastly, the article
looks at how manufacturers can use a point on sale information to improve operations planning.
Main Assumption
The major assumption arising from this article holds that information sharing for
operations planning automatically guarantee benefits for the companies that use it. However, this
assumption is disputed on the fact not all companies derive benefits from employing value sales
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Running head LITERATURE REVIEW CRITIQUE 10
information sharing. Secondly, the value of shared sales information varies with different
situations and factors.
Implications
There are major operations management implications evident in this study. The article
offers very important information about the operations management especially during the
production of the new product. Alternatively, the article makes it clear that applicability of
shared sales information with situations. Finally, the article equips operation managers with the
knowledge that they should expect different outcomes when they invest on sales information
sharing. This is because it may result in positive or negative outcomes.
Conclusion and Recommendation
This is one of the best articles that explains the connection between sales data and
operations planning. The article goes further to explain in detail how operations managers can
use a point on sale information to improve operations management. Again, the article provides
the benefits and drawbacks associated with sharing sales information for operations planning.
However, the article is largely based on the assumption. This makes the results of the study a bit
unreliable. Therefore, this paper suggests this article could have been improved through relying
largely on the primary data than on the secondary information.
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References
Márcio, A., Scavarda, L. F., Fernandez, N. S., & Scavarda, A. J. (2012). International Journal of
Productivity and Performance Management Emerald Article. Sales and operations
planning and the firm performance, 61(4), 359 - 381.
Cauchois, R., & Taghipour, A. (2016). Advanced Solutions for a Supply Chain with Stochastic
Information. Journal of Advanced Management Science, 5(1), 9-13.
Cavusoglu, H., Cavusoglu, H., & Raghunathan, S. (2011). The value of an Interaction between
Production Postponement and Information Sharing Strategies for Supply Chain Firms.
Production and Operations Management, 21(3), 470–488.
Ellinger, E., & Keller, R. (2010). The relationship between marketing/logistics interdepartmental
integration and performance in US manufacturing firms: an empirical study. Journal of
Business Logistics, 26(1), 1-22.
Gimenez, C. (2015). Logistics-production, logistics-marketing and external integration: their
impact on performance. International Journal of Operations & Production Management,
25(1), 20-38.
Godsell, J. (2010). Building the supply chain to enable business alignment: lessons from British
American Tobacco. Supply Chain Management: An International Journal, 15(1), 10-15.
Harwell, J. (2012). Sales and operations are planning in the retail industry. Journal of Business
Forecasting, 27(2), 4-10.
Holt, C. (2012). Learning how to plan production inventories and work force. Operations
Research, 96-9.
Kaipia, R., Holmstrom, J., Småro, J., & Rajala, R. (2017). Information sharing for sales and
operations planning: Contextualized solutions and mechanisms. Journal of Operations
Management, 52, 15e2916.
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