THE DARK SIDE

FOCUSES

Dark Side of Management Sciences

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© 2024 Cuiling JIANG
 Learning Objectives

• Critically evaluate the pros and cons of Just-in-Time system.

• Critically assess using artificial intelligence in upgrading supply chain.

«• Critically evaluate whether plastic packaging is fantastic for packaging.

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A framework
for Critical
thinking

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JUST-IN-TIME SYSTEM IS
FANTASTIC?

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The main components of a
supply chain include
suppliers, manufacturers,
distributors, retailers, and
customers.
- Inventory Management;
- Logistics;
- Risk Management;
- etc?.

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Effective supply chain
management involves
managing the flow of both
goods and information.

This includes coordinating

production schedules, inventory
levels, transportation, and
communication between
various stakeholders.

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 Example: The just-in-time (JIT) system for the inventory management
• The JIT system, also known as the Toyota Production System (TPS), is a supply chain
strategy aimed at minimizing inventory and enhancing efficiency.

• JIT is comprised of the following steps:

• A customer places an order.

• The business receives the order and places an order for the product from the supplier.
« • Upon receiving the order, the supplier delivers it to the business.
• The business fulfills the order, and the customer receives the product.
• The advantages of the JIT system include cost reduction, enhanced efficiency, space
saving, among others.

Question :
Is JIT system a best practice for all the companies
in all the countries at any moment?

https://www.investopedia.com/terms/j/jit.asp
https://www.forbes.com/advisor/business/just-in-time-inventory/
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 Quiz on « just-in-time » system »

1. What is the primary objective of the just- 3. Which of the following is a key principle of
in-time (JIT) system in manufacturing? the just-in-time (JIT) system?

A) Maximizing inventory levels A) High levels of excess inventory

B) Minimizing production efficiency B) Large production batches
C) Reducing waste and improving efficiency C) Continuous improvement
D) Increasing lead times D) Lengthy production lead times

2. Which of the following is a characteristic 4. What is the impact of the just-in-time (JIT)
of the just-in-time (JIT) system? system on production scheduling?

A) High inventory levels A) Reduced flexibility in scheduling

B) Large batch production B) Increased setup times
C) Frequent setup changes C) Shorter production cycles
D) Long lead times D) Longer wait times for customers

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«

https://mimfg.org/Articles/th
e-end-of-jit-adapting-to-the-
global-supply-chain-
shortage-in-2022

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«

https://www.youtube.com/watch?v=-PQEP3wdVo0

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«

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 Drawbacks of JIT https://www.forbes.com/advisor/business/just-in-time-inventory/

• Higher inventory costs. It can be more expensive to make smaller,

more frequent orders than bulk orders every so often. Therefore, JIT
inventory can reduce your profit from each sale.

• Supply chain disruption. If a product goes on back order or a natural

« disaster strikes, you may experience disruptions in your supply chain.
These disruptions can hinder your operations and cost you money.

• JIT has strict requirements for partners (e.g., suppliers) and

employees.

• Tougher to forecast demand. With JIT, you have to predict the short-
term demand for a specific item and envision how demand could
change over time. 12
 If you wish to know more about the dark side of Just-in-Time system, please
read the following articles.

https://mimfg.org/Articles/the-end-of-jit-adapting-to-the-global-supply-chain-shortage-in-2022

https://flow.db.com/trade-finance/is-just-in-time-out-of-time

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https://fortune.com/2022/08/15/inventory-issues-earnings-jit-jic-hybrid-approach-supply-chains-retail-kal-raman/
 UTILIZING ARTIFICIAL
INTELLIGENCE IN DAILY
WORKPLACE IS FANTASTIC?

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 Artificial Intelligence

Artificial intelligence (AI) is typically defined as the ability of machines to perform

human-like cognitive tasks. These can include automation of physical processes such as
manipulating and moving objects, learning, sensing, perceiving, planning, problem-
solving, decision-making and innovation (Benbya, Davenport, & Pachidi, 2020).

AI is being applied in organizations for diverse objectives:

- to make processes more efficient (28% as one of top two),
- to enhance existing products and services (25%),
- to create new products and services (23%), Augmentation
- to improve decision-making (21%), view
- to lower costs (20%).

Benbya, Hind; Davenport, Thomas H.; and Pachidi, Stella (2020) "Artificial Intelligence in Organizations: Current State and Future Opportunities," MIS Quarterly Executive:
19 (4). Available at: https://aisel.aisnet.org/misqe/vol19/iss4/4

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 Using AI in the workplace

Over 50% of business owners

¼ business owners are Nearly two-thirds(64%) of
use AI for cybersecurity and concerned about AI business owners believe AI
affecting website traffic. will improve customer
fraud management.
relationships.

Nearly half (46%) of

business owners use AI to
craft internal
communications.

Almost all (97%) business owners believe ChatGPT

will help their business.
Over 40% are concerned about
1/3 businesses plan to use ChatGPT to write website
content, while 44% plan to use ChatGPT to write
an over-dependence on
content in other languages. technology due to AI use.
https://www.forbes.com/advisor/business/software/ai-in-business/

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 AI IS COMMONLY APPLIED IN SUPPLY CHAIN MANAGEMENT!

• Demand forecasting
• Inventory management
• Production planning
• Logistics and transportation
• Warehouse automation
• Supplier relationship management
• Quality control
• Customer service and support
• Etc.

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https://www.aboutamazon.com/workplace

https://businessmodelanalyst.com/amazon-subsidiaries/
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8 Ways Amazon Is Using Generative AI

https://www.aboutamazon.com/news/innovation-at-amazon/how-amazon-uses-generative-ai

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https://www.youtube.com/watch?v=NrmMk1Myrxc
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https://www.youtube.com/watch?v=Yiafb0-gqF4

https://www.youtube.com/watch?v=ZWonAz7Kczs

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https://www.youtube.com/watch?v=HxXJ8Q2GCs4
https://www.youtube.com/watch?v=Jh27vjAhE-c

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 How do you like Amazon’s AI-related practices?
Do you have any concerns about Amazon's use of AI in the business?

Any dark side of Amazon’s AI-related practices?

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AI is with bias!
- Biased data
- Biased algorithms
- Biased decision-making processes

https://www.youtube.com/watch?v=ixIoDYVfKA0
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PLASTIC IS FANTASTIC?

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«

• Since the 1990’s this company has been recycling polyester, which comes from
plastic soda bottles that are spun to make the materials used in their jackets and other
lines of clothing. To date, 84% of their fabrics are recycled plastic.

https://youtu.be/waUYdw9wVts https://www.patagonia.com/our-footprint/ 26
«
• The Swiss food and beverage company aims to reduce its CO2 emissions by 50% by 2030.
• Nestlé has reduced the packaging materials in its coffee and nutritional products.
• Nestlé has developed a water-saving technology for its coffee machines and invested in carbon-
reducing technologies for refrigeration systems.
• Power all Nestle’s sites with 100% renewable electricity by 2025.
• Use 100% recyclable or reusable packaging by 2025.
• Cut 33% of virgin plastic in their packaging by 2025.
• Plant 20 million trees a year.

https://www.nestle.com/sustainability/climate-change/zero-environmental-impact 27
«

• French cosmetic company Garnier uses recycled plastic in its packaging.

• By 2025, the company will manufacture packaging with recyclable, degradable
or reusable material and ensure all Garnier factories are CO2 neutral.

https://www.youtube.com/watch?v=zOy5FZuG6Mo
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• In 2015, Adidas partnered with environmental organisation Parley for the Oceans, which
focuses on the health of the oceans and the impact of pollution.
• In 2020, half of the polyester used in Adidas’ products came from recycled plastic waste. The
same year, Adidas also manufactured 15mn pairs of shoes made from plastic waste sourced
from beaches.
• From 2024, the company will use recycled polyester in the manufacturing of its garments.

https://www.youtube.com/watch?v=TDfobJAck24 29
We are making a lot of progress in recycling the plastics, right?

It seems like a lot of companies and individuals are engaging in

recycling plastics, right?

In the reality, how does plastic recycling look like at the country
level, sector level, company level and individual level ?

Can all the plastics be recycled?

What are the real data for plastic recycling ?

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What are the bright and dark sides of using plastics in packaging?

Bright side Dark side

• Versatility • Environmental impact : Only 9% of plastics
• Durability in the world have been recycled
• Cost-effectiveness • Non-biodegradable
• Lightweight • Microplastics
• Convenience • Single-use culture
• Etc. • Convenience
• Etc.

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https://www.youtube.com/watch?v=pUEiBZm6qaM&t=103s

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HOW TO REDUCE PLASTIC USAGE IN YOUR SUPPLY CHAIN?

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Thank you

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