TABLE OF CONTENTS
ABSTRACT ……………………………………………………………………………. ii ACKNOWLEDGEMENT ……………………………………………………………. iv LIST OF TABLES…………………………………………………………………….. ix LIST OF TABLES…………………………………………………………………….. xi I. Introduction………………………………………………………………………….. 1 Problem Statement ……………………………………………………………… 3 Purpose of the Study.……………………………………………………………..4 Conceptual Framework for Research……………………………………….…… 5 Research Questions ……………………………………………………………. 12 II. Literature Review …………………………………………………………………. 13 Supply Chain Management (SCM) ……………………...…………………….. 13 Reasons for Forming SCM …………………………………………….. 13 Definition ……………………………………………………………….14 Key Management Processes in the Supply Chain ………………….….. 16 Benefits ………………………………….………………………….….. 17 Supply Chain Management Activities …………………………………. 18 Inventory Management ………………………………………………………... 23 Definition and Type of Inventory ……………………………………… 24 Roles of Inventory ………………………………………….………….. 25 Overview of Inventory Control Model ………………………………… 26 Decisions on Production and Inventory Management …………….……28 Inventory Management in the Supply Chain ……………………….…. 29 Apparel Manufacturing ………………………………………………………... 31 General Overview ……………………………………………………… 31 Apparel Industry and SCM……………………………………….....…. 32 Inventory Management in Apparel Manufacturing …………………… 34 Product Characteristics and Demand Uncertainty ………………….….37 Production System in Apparel Manufacturing ………………………… 43 Fabric Suppliers ………………………………………………………... 48 Retail Customers …………………………………………….………….49 Summary of Literature ………………………………………………………….53
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III. Methodology ……………………………………………………………………… 55 Hypotheses …………………………………………………………………….. 55 Assumptions ……………………………………….……………………………59 Research Design ……………………………………………………………….. 59 Sample …………………………………………………………………………. 60 Instrument ……………………………………………………………………… 63 SCM Activities ………………………………………………………… 63 Company Characteristics ……………...…………….………………… 64 Inventory Performance ………………………………………………… 66 Reliability and Validity of the Instrument ………...…………………… 68 Data Collection ………………………………………………………………… 69 Data Analysis …………………………………….……………………………..70 IV. Findings and Discussion……...……………………………………………………75 Return Rate for the Survey…………………………………………………….. 75 Demographic Profile of the Respondents………………………………………. 79 Size of the Companies………………………………………………….. 80 SIC Code……………………………………………………………….. 81 SCM Activity Level……………………………………………………………. 88 SCM Activity Level and Company Characteristics……………………………. 89 SCM Activity Level and Product Characteristics……………………… 89 SCM Activity Level and Production Systems…………………………. 93 SCM Activity Level and Fabric Supplier Characteristics……………… 96 SCM Activity Level and Retail Customer Characteristics……………. 100 Summary……………………………………………………………… 107 Company Characteristics and Inventory performance…………………………111 Fashion Goods vs. Basic Goods Inventory Performance………………111 Production System and Inventory Performance………………………. 119 Fabric Supplier Characteristics and Inventory performance………….. 120 Retail Customer Characteristics and Inventory Performance………… 122 Summary……………………………………………………………… 127 SCM Activity Level and Inventory Performance…………………………….. 131
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V. Conclusion, Implication, Limitation, and Suggestion………………………….. 142 Conclusion and Implication……………………………………………………143 Limitation and Suggestion……………………………………………………. 147 VI. References……………………………………………………………………….. 150 VITA…………………………………………………………………………………. 178
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LIST OF TABLES
Table II-1. Table II-2. Table II-3. Table III-1 Table IV-1 Table IV-2 Table IV-3 Table IV-4 Table IV-5 Table IV-6 Table IV-7 Table IV-8 Table IV-9 Table IV-10 Table IV-11 Table IV-12 Table IV-13 Table IV-14 Table IV-15 Table IV-16 Table IV-17 Table IV-18 Summary of Definitions of SCM ………………………………………. 15 Summary of SCM Benefits …………………………………………….. 18 SIC and NAICS ………………………………………………………... 38 Measurements Contents of SCM Activities …………………………… 64 Response Rates........................................................................................ 76 Demographics of Non-respondents......................................................... 77 Profile of Respondents by Number of Employees and SIC code ........... 79 Mean Scores of 26 SCM Activity Scales ................................................ 82 Results of Cluster Analysis ..................................................................... 83 Factor Analysis for SCM Activity Dimension and Chronbach Alpha.... 84 ANOVA and Tukey Test for the six SCM Activity Dimensions............ 85 ANOVA and Tukey Test for Number of Employees by SCM Activity Cluster ..................................................................................................... 87 ANOVA and Tukey Test for SCM Activity Level and Product Fashion Level........................................................................................................ 89 Correlation between Six SCM Activity Dimension Scores and Product Fashion level .......................................................................................... 92 Chi-square Analysis for SCM Activity Cluster and Product Category... 92 ANOVA and Tukey test for Six SCM Activity Dimension Scores and Product Category Groups ........................................................................ 93 Production Systems Used by Respondents ............................................ 94 Chi-square Analysis for SCM Activity Cluster and Production System 95 T-test for SCM Activity Dimension Scores and Production System ...... 96 ANOVA and Tukey Test for SCM Activity Cluster and Fabric Supplier Characteristics ......................................................................................... 98 Correlation Analysis for SCM Activity Dimensions Scores and Fabric Supplier Characteristics........................................................................... 99 ANOVA and Tukey test for SCM Activity Cluster and Retail Customer Characteristics ......................................................................................... 102
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Table IV-19 Table IV-20 Table IV-21 Table IV-22 Table IV-23 Table IV-24 Table IV-25 Table IV-26 Table IV-27 Table IV-28 Table IV-29
Correlation Analysis for SCM Activity Dimension Scores and Retail Customer characteristics ......................................................................... 103 Cost-oriented Retail Customer Profile .................................................... 104 Chi-square Analysis for SCM Activity Cluster and Retail Customer Type ................................................................................................................. 105 ANOVA and Tukey test for SCM Activity Dimensions and Retail Customer Type ........................................................................................ 106 Summary of the Relationship between SCM Activity Dimension and Company Characteristics......................................................................... 109 Mean Scores of Raw Material Inventory Performance Measures........... 112 Mean Scores of WIP Inventory Performance Measures ......................... 112 Mean Scores of Finished Good Inventory Performance Measures......... 113 Mean Scores of Expectation of Improvement in Overall inventory Performance Measures ........................................................................... 114 Paired Samples T-test for Inventory Performance Measures.................. 115 Mean Scores and Paired T-test of Total Lead-time for Fashion Goods and Basic Goods............................................................................................. 116
Table IV-30 Correlation Analysis for Fashion Goods Production Volume and Inventory Performance ............................................................................................ 117 Table IV-31 Table IV-32 Table IV-33 Table IV-34 Table IV-35 Table IV-36 Table IV-37 T-test for Production System and Inventory Performance...................... 120 Regression Analysis for Fabric Supplier Characteristics and Significant Inventory Performance Measures............................................................ 121 Regression Analysis for Retailer Characteristics and Significant Inventory Performance Measures ............................................................................ 123 ANOVA and Tukey test for Retailer Type and Inventory Performance. Measures.................................................................................................. 126 Significant Relationships Found between Company Characteristics and Inventory Performance Measures............................................................ 127 ANOVA and Tukey test for SCM Activity Clusters and Inventory Performance Measures ........................................................................... 132 Regression Analysis for SCM Activity Dimensions and Inventory Performance Measures ............................................................................ 138
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LIST OF FIGURES
Figure I-1. Figure II-1. Figure III-1. Figure IV-1. Figure IV-2. Figure IV-3. Figure IV-4. Figure IV-5. Figure IV-6. Figure IV-7. Conceptual Framework ………………………………………………….. 6 Key Management Processes between Chain Members …………………17 Sample Stratum Description……………………………………………. 62 SCM Activity Clusters by Fashion Level ............................................... 91 SCM Activity Dimensions and Company Characteristics ...................... 110 Company Characteristics and Fashion Goods Inventory Performance... 129 Company Characteristics and Basic Goods Inventory Performance ...... 130 SCM Activity Dimension and Fashion Goods Inventory Performance.. 140 SCM Activity Dimension and Fashion Goods Inventory Performance.. 140 Conceptual Framework of the study ....................................................... 142
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