Journal of Business and Management Sciences. 2013, 1(5), 105-111
DOI: 10.12691/JBMS-1-5-4
Original Research

The Impact of Resource Commitment, Product Route Efficiency on Supply Chain Performance and Profitability: An Empirical Case Analysis

Kelly Weeks1, and Joan Mileski1

1Department of Maritime Administration, Texas A&M University at Galveston, Galveston, Texas

Pub. Date: November 03, 2013

Cite this paper

Kelly Weeks and Joan Mileski. The Impact of Resource Commitment, Product Route Efficiency on Supply Chain Performance and Profitability: An Empirical Case Analysis. Journal of Business and Management Sciences. 2013; 1(5):105-111. doi: 10.12691/JBMS-1-5-4


This study examines the impact of resource commitment and product route efficiency on supply chain performance of the firm through operations management. The firm’s profitability is impacted by the commitment made by its management on resources and also by product route efficiency of transporting goods to its customers. Sixteen hundred survey instruments were mailed to the scrap steel industry with 277 of the 307 returned being useable. Structural equation modeling (SEM) was utilized to test each related hypothesis.


supply chain & logistics, operations management, resource commitment, product route efficiency, profitability


Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit


[1]  Craighead, C. W., J. Blackhurst, M. J. Rungtusanatham, and R. B. Handfield. (2007). The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities. Decision Sciences, Vol. 38, No. 1, pp. 131-156.
[2]  Sahin, F., and E. R. Robinson. (2002). Flow Coordination and Information Sharing in Supply Chains: Review, Implications, and Directions for Future Research. Decision Sciences, Vol. 33, No. 4, pp. 505-536.
[3]  Narasimhan, R., and J. Jayaram. (1998). Causal Linkages in Supply Chain Management: An Exploratory Study of North American Manufacturing Firms. Decision Sciences, Vol. 29, No. 3, pp. 579-605.
[4]  Lambert, D. M., J. R. Stock, and L. M. Ellram. (1998). Fundamentals of Logistics Management, Irwin/McGraw-Hill, Boston, MA.
[5]  Tracey, M., J. S. Lim, and M. A. Vonderembse. (2005). The Impact of Supply-chain Management Capabilities on Business Performance. Supply Chain Management: An International Journal, Vol. 10, No. 3/4, pp. 179-191.
[6]  Huang, S. H., M. Uppal, and J. Shi. (2002). A Product Driven Approach to Manufacturing Supply Chain Selection. Supply Chain Management: An International Journal, Vol. 7, No. 4, pp. 189-199.
[7]  Autry, C.W. 2005.Formalisation of Reverse Logistics Programs: A Strategy for Managing Liberalised Returns. Industrial Marketing Management, Vol. 34, No. 7, pp. 749-757.
[8]  Richey, R. G., S. E. Genchev, and P. J. Daugherty. (2005). The Role of Resource Commitment and Innovation in Reverse Logistics Performance." International Journal of Physical Distribution & Logistics Management, Vol. 35, No. 3/4, pp. 233-257.
[9]  Haas, D. A., F. H. Murphy, and R. A. Lancioni. (2003). Managing Reverse Logistics Channels with Data Envelopment Analysis. Transportation Journal, Vol. 42, No. 3, pp. 59-69.
[10]  Gottinger, H. W. (1988). A Computational Model for Solid Waste Management with Application. European Journal of Operational Research, Vol. 35, No. 3, pp. 350-365.
[11]  Byrd, T. A., J.P. Pitts., A.M. Adrian, and N.W. Davidson. (2008). Examination of a Path Model Relating Information Technology Infrastructure with Firm Performance, Journal of Business Logistics, Vol. 29, No. 2, pp. 161-187.
[12]  Daugherty, P. J., C. W. Autry, and A. E. Ellinger (2001). Reverse Logistics: The Relationship Between Resource Commitment and Program Performance." Journal of Business Logistics, Vol. 22, No. 1, pp. 107-123.
[13]  Daugherty, P. J., M. B. Myers, and R. G. Richey (2002). Information Support for Reverse Logistics: The Influence of Relationship Commitment. Journal of Business Logistics, Vol. 23, No. 1, pp. 85-107.
[14]  Daugherty, P. J., R. G. Richey, S. E. Genchev, and H. Chen. (2005). Reverse Logistics: Superior Performance Through Focused Resource Commitments to Information Technology. Transportation Research. Part E, Logistics & Transportation Review, Vol. 41E, No. 2, pp. 77-92.
[15]  Hendricks, K.B., V.R. Singhal, and J.K. Stratman. (2007). The Impact of Enterprise Systems on Corporate Performance: A study of ERP, SCM, and CRM System Implementations. Journal of Operations Management, Vo. 25, pp. 65-82.
[16]  Richey, R. G., P. J. Daugherty, S. E. Genchev, and C. W. Autry. (2004). Reverse Logistics: The Impact of Timing and Resources. Journal of Business Logistics,Vol. 25, No. 2, pp. 229-251.
[17]  Shah, R., and H. Shin. (2007). Relationships Among Information Technology, Inventory, and Profitability: An Investigation of Level Invariance Using Sector Level Data. Journal of Operations Management, Vol. 25, pp. 768-784.
[18]  Alfred, A. and J. Vallieres (1998). "Valued Role of Reverse Logistics in the Supply Chain."Materials Management and Distribution, Vol. 43, No. 5, pp. 63.
[19]  Shah, R., S. M. Goldstein, and P. T. Ward. (2002). Aligning Supply Chain Management Characteristics and Interorganizational Information System Types: An Exploratory Study. IEEE Transactions on Engineering Management, Vol. 49, No. 3, pp.282-292.
[20]  Andel, T. (1997). Reverse logistics: A Second Chance to Profit. Transportation & Distribution,Vol. 38, No. 7, pp. 61-66.
[21]  Reese, A. (2005).Meeting the Reverse Logistics Challenge. Supply & Demand Chain Executive,Vol. 6, No. 4, pp. 44-48.
[22]  Alshamrani, A. (2003). Combined Routing and Product Tank-back strategies in Reverse Logistics. Department of Operations, Case Western Reserve: 198. Available from: [Accessed 5 June 2008].
[23]  Jaggi, B., and M. B. Freedman. (1992). An Examination of the Impact of Pollution Performance on Economic and Market Performance: Pulp and Paper Firms. Journal of Business Finance & Accounting,Vol. 19, No. 5, pp. 697-713.
[24]  Anderson, S. W. (2001). Direct and Indirect Effects of Product Mix Characteristics on Capacity Management Decisions and Operating Performance.International Journal of Flexible Manufacturing Systems,Vol. 13, No. 3, pp. 241-265.
[25]  Hur, D, V. A. Mabert, and K. M. Bretthauer. (2004). Real-Time Work Schedule Adjustment Decisions: An Investigation and Evaluation. Production and Operations Management.Vol. 13, No. 4, pp. 322-340.
[26]  Fang, F., and A. Whinston. (2007). Option Contracts and Capacity Management-Enabling Price Discrimination under Demand Uncertainty. Production and Operations Management, Vol. 16, No. 1, pp. 125-138.
[27]  Scheraga, C. (2004). The Relationship between Operational Efficiency and Customer Service: A Global Study of Thirty-Eight Large International Airlines. Transportation Journal.Vol. 43, No. 3, pp.48-59.
[28]  Tracy, D., and J. Knight. (2008). Lean Operations Management: Identifying and Bridging the Gap between Theory and Practice. Journal of American Academy of Business, Vol.12, No. 2, pp. 8-15.
[29]  Rothschild, M. (2006). Shareholders Pay for ROA. Strategic Finance, Vol. 88, No. 5, pp. 26-32.
[30]  Faulin, J., J. S. Sarobe, and J.Simal. (2005). The DSS LOGDIS Optimizes Delivery Routes for FRILAC'S Frozen Products.Interfaces,Vol. 35, No. 3, pp. 202-217.
[31]  Fenton, M., 2004, Iron and Steel Scrap. Available from:
[32]  Tavoletti, R., 2002. American Iron and Steel Institute, unpub. data, July 2002.
[33]  Hair, J.F., R. E. Anderson, R. L. Tatham, and W. C. Black. (1998). Multivariate Data Analysis. Upper Saddle River, NJ, Prentice Hall.
[34]  Bollen, K. A. (1989). Structural Equation with latent variables.New York, NY: Wiley.
[35]  Gillon, R. (2006). Analyzing Relationships among competitive advantage, supplier selection strategies in product categories and organizational performance. Doctoral Dissertation, JacksonStateUniversity.
[36]  Rakov, T. M., and G.A. Marcoulides. (2000). A first course in structural equation modeling.Manwah, NJ, Lawrence Erlbaum Associates.
[37]  Joreskog, K. G., &Sorbom, D. (1993). LISREL 8: Structural Equation Modeling with the SIMPLIS Command Language Lincolnwood, IL, Scientific Software International, Inc.
[38]  Hayduk, L. A. (1987). Structural equation modeling with LISREL: Essentials and advances. Baltimore, MD, JohnHopkinsUniversity Press.