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ABSTRACTRecent articles in the Wall Street Journal summarize the state of business practice in American hospitals by shedding light on the state of supply chain management practices and foci in today's health care supply chains. In health care, the single largest cost after labor is materials, and it has been documented that health care facilities can reduce the environmental impacts of the products and services they consume before regulatory problems arise or waste disposal costs increase by focusing on their upstream activities. Health care systems around the country consume significant quantities and varieties of products within the health delivery processes. Solving these environmental problems requires a much broader view involving collaborative efforts of professionals from different areas of health care to meet these challenges. The purchasing function bridges the gaps by providing a healthy dialogue on key environmental attributes within the health care supply chain. The concept of bundling new with refurbished products is gaining a lot of attention in the health care supply chain. This research describes a health care purchasing problem for bundling new and refurbished products of the type facing a growing number of large health care providers, and then proposes a methodology for evaluating the complex tradeoffs involved in bundling decisions for refurbished health care products. By exploiting some useful properties of the problem structure, our results provide buyers with useful insights for examining and selecting suppliers who are willing to offer bundles of new and refurbished products.

This study explores the applicability of the resource‐based view at the organizational unit level by investigating why resource utilization, as measured by efficiency, might differ within a firm. Using a downstream petroleum firm as the context for this study, the data envelopment analysis framework is applied to examine resource input congestion of its DCs (i.e. distribution centers). The study also provides a more granular analysis by decomposing distribution efficiency into managerial, scale, and programmatic efficiency, and examines the impact of corporate‐level decision making by including non‐discretionary variables. The analysis identifies opportunities to improve efficiency at the organizational unit level, using alternative views of the operational problem. The approach also provides practicing managers with an objective means to evaluate performance at the level of the organizational unit. Both the efficiency view and the managerial performance view are discussed simultaneously from a strategic view of firm resources.

ABSTRACTThis article presents a consensus‐building methodology to implement dyadic performance measurement. It focuses on transmuting supplier performance and buyer performance metrics on several important attributes into actionable relationship management plans using Clark's (1996) theory of performance frontiers. Access to the supplier performance management program of a Fortune 100 corporation was granted to the research team. Direct observation of practice and in‐depth discussions with several managers provided a roadmap for investigating both the literature on quantitative evaluation methods and the empirically derived theory on buyer–supplier relationships from several perspectives. This study describes a multiphase, iterative framework that uses current methods and theory on dyadic buyer–supplier evaluation to consider: (i) evaluation criteria and their importance; (ii) whether the improvement focus should be on strengths, weaknesses, or both; and (iii) whether the referent role supplier should be the ideal supplier, best supplier, or best‐in‐strategic‐group supplier in the focal supply base. We illustrate a unifying approach by reporting results from a large buyer and 35 of its key suppliers. This research makes the case for managing supplier relationships through the dyadic performance lens. The outputs from this framework provide individual supplier improvement paths which are actionable prescriptions for each buyer–supplier dyad, as well as recommendations for strategic group formation.