Demand Fluctuation and Supply Chain Integration: Case Studies of Japanese Firms

2017 ◽  
Vol 16 (5) ◽  
pp. 564-586
Author(s):  
Mizuki Kobayashi ◽  
Takahiro Tomino ◽  
Junjiro Shintaku ◽  
YoungWon Park
Keyword(s):  
Supply Chain ◽  
Case Studies ◽  
Manufacturing Firms ◽  
Marketing Channels ◽  
Supply Chain Integration ◽  
Japanese Firms ◽  
Make To Order ◽  
Make To Stock ◽  
And Control ◽  
Tremendous Challenge

Abstract Current Japanese oems utilize both make-to-stock (mts) and make-to-order (mto) to cope with demand fluctuation. In this article, we study how leading manufacturing firms utilize mts and mto by observing two case studies, Toyota’s and Omron’s operations in China. Production and delivery of component suppliers are based on the advance notification from their manufacturers. For this, most automotive firms integrate marketing channels internally, however, most healthcare firms do not. Consequently, it is difficult to forecast and control demand accurately like automotive firms. In this sense, for healthcare firms, it is a tremendous challenge to respond to demand fluctuation through integration with external marketing agencies. We show both companies strategies to mix mts and mto along with integrating internal and external parties.

Managing supplier flexibility performance as a relational exchange investment in make-to-stock versus make-to-order production environments

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Divesh Ojha ◽  
Jeff Shockley ◽  
Pamela P. Rogers ◽  
Danielle Cooper ◽  
Pankaj C. Patel
Keyword(s):  
Supply Chain ◽  
Information Quality ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Relational Exchange ◽  
Relative Importance ◽  
Content Type ◽  
Make To Order ◽  
Production Environments ◽  
Make To Stock

Purpose This paper aims to develop and test a model of buyer–supplier relational investment that links supply chain integration (SCI) to supplier flexibility performance (SFLEX) advantages in different manufacturing environments. Relational stability (RS) and information quality (IQL) are viewed as key indicators of intermediating commitment investments in supplier relationships to help support supplier accommodations for special requests for order flexibility. The model is applied to investigate the relative importance of manufacturer relational investments with suppliers in both make-to-stock (MTS) and make-to-order (MTO) production environments. Design/methodology/approach A survey of 206 US manufacturing firms was used to test the proposed research model using structural equation modeling and multiple-group analysis techniques. Findings Social exchange investments in relationship stability and information quality are found to fully mediate the positive performance relationship between supply chain integration and supplier flexibility performance for manufacturers. However, the relative importance of each form of investment in enhancing supplier flexibility performance varies based on the buyer’s (manufacturer’s) order fulfillment environment (make-to-stock versus make-to-order). Originality/value The proposed model may assist manufacturers make more informed relational exchange investments and supply chain configuration decisions that most conducive to enhancing supplier flexibility performance for different production environments.

Supply chain integration and firm performance: an empirical study of Swedish manufacturing firms

2014 ◽  
Vol 24 (1) ◽  
pp. 20-31 ◽  
Author(s):  
Hooshang M. Beheshti ◽  
Pejvak Oghazi ◽  
Rana Mostaghel ◽  
Magnus Hultman
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Well Being ◽  
Survey Instrument ◽  
Global Market ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact

Purpose – This article aims to explore the impact of supply chain integration on the financial performance of Swedish manufacturing firms. Design/methodology/approach – The literature review provided the foundation for the development of the survey instrument and hypotheses for the study. In addition, the survey instrument was tested by the experts in the field and modified before it was sent to the managers in the survey group. Findings – The findings show that supply chain integration at any level is beneficial to the financial well being of the firm. Companies with total supply chain integration reported the highest level of financial performance. Research limitations/implications – Data were collected from Swedish manufacturing firms without regard to the size of the firm. The results show that supply chain integration is beneficial at any level. Practical implications – The findings will assist managers with decisions regarding supply chain integration and its role as a critical factor in improving the financial performance of manufacturing companies. Originality/value – Limited empirical studies have been conducted in this area, especially in Sweden. This study provides insight for manufacturing managers with regard to the importance of supply chain management and the competitive nature of business in the global market.

Supply chain integration and its impact on supply chain agility and organizational flexibility in manufacturing firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Azwan Ahmad Shukor ◽  
Md. Shah Newaz ◽  
Muhammad Khalilur Rahman ◽  
Azni Zarina Taha
Keyword(s):  
Supply Chain ◽  
Environmental Uncertainty ◽  
Manufacturing Firms ◽  
Partial Least Square ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Organizational Ambidexterity ◽  
Organizational Flexibility ◽  
Content Type ◽  
Supply Chain Agility

PurposeThis study investigates the impact of environmental uncertainty and organizational ambidexterity on supply chain integration and its relationship between supply chain agility and organizational flexibility in the manufacturing firms.Design/methodology/approachThe data were collected from 526 managers in services and manufacturing industry in Kuala Lumpur. The partial least square (SmartPLS 3.0) tool was applied through the use of the structural equation modeling (SEM) technique.FindingsThe results revealed that a strong relationship exist between environmental uncertainty and supply chain integrations including customer, supplier and internal integration. Organizational ambidexterity has a significant relationship with supply chain integration. Supply chain integrations were shown to have a positive impact on the firm's supply chain agility and organizational flexibility.Originality/valueThe findings may assist to establish a set of key drivers for enhancing supply chain agility and organizational flexibility as a supply chain management initiative in the manufacturing and service industry.

Improving Supply Chain Delivery Performance Using Lean Six Sigma

2017 ◽  
pp. 958-980
Author(s):  
Alfred L. Guiffrida ◽  
Kelly O. Weeks ◽  
Lihua Chen
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Six Sigma ◽  
Lean Six Sigma ◽  
Performance Model ◽  
Delivery Performance ◽  
Make To Order ◽  
Make To Stock ◽  
Delivery Models ◽  
Static Point

Models for evaluating and improving delivery performance play an important role in the management of supply chains. A review of supply chain delivery models that use Six Sigma methodologies indicate that the models are limited to only make-to-order supply chains where improvement in delivery performance occurs at a fixed (static) point in time. In this chapter, the authors present a generalized delivery performance model that overcomes these limitations. The model presented here can be used to measure delivery performance in both make-to-order and make-to-stock supply chains and supports improvement in delivery performance over a planned time horizon with definable milestones for attaining targeted levels of improvement. Numerical illustrations of the model are presented.

A Review on Strategic Positioning of Bottleneck around the Customer Order Decoupling Point and Issues on Production Planning in Supply Chain

2016 ◽  
Vol 16 (4) ◽  
pp. 243-254
Author(s):  
Muhammad Saeed ◽  
Samiya Loya ◽  
Adil Loya
Keyword(s):  
Supply Chain ◽  
Capacity Planning ◽  
Strategic Positioning ◽  
Shifting Bottleneck ◽  
Customer Order ◽  
Make To Order ◽  
Make To Stock ◽  
Engineer To Order ◽  
Operational Constraints ◽  
Specific Part

AbstractThe decoupling point separates part of the supply chain oriented towards customer orders from the part based on forecast planning. This paper focuses on identification of bottlenecks and their positioning with respect to customer order decoupling point (CODP) in supply chain continuum. The research is based on a conceptual model that separates engineer to order (ETO), make to order (MTO), assemble to order (ATO) and make to stock (MTS) by a decoupling point. The important feature of this paper is that supply, demand and operational constraints are allocated in specific part of the supply chain, making it more versatile. Shifting bottleneck concepts, including impact of bottleneck position and issues concerning production and capacity planning, are studied extensively to stabilize the supply chain and reduce its complexity.

A Queueing-Game Model for Making Decisions About Order Penetration Point in Supply Chain in Competitive Environment

2013 ◽  
Vol 4 (4) ◽  
pp. 1-24 ◽  
Author(s):  
Ebrahim Teimoury ◽  
Mahdi Fathi
Keyword(s):  
Supply Chain ◽  
Strategic Decision ◽  
Sensitivity Analyses ◽  
Buffer Size ◽  
Inventory Level ◽  
Game Model ◽  
Profit Function ◽  
Make To Order ◽  
Capacity Model ◽  
Make To Stock

This study is dedicated to Order Penetration Point (OPP) strategic decision making which is the boundary between Make-To-Order (MTO) and Make-To-Stock (MTS) policies. This paper considers two competing supply chains in which a manufacturer produces semi-finished items on a MTS basis for a retailer that will customize the items on a MTO basis. The two-echelon supply chain offers multi-product to a market comprised of homogenous customers who have different preferences and willingness to pay. The retailer wishes to determine the optimal OPP, the optimal semi-finished goods buffer size, and the price of the products. Moreover, the authors consider both integrated scenario (shared capacity model) and competition scenario (Stackelberg queueing-game model) in this paper. A matrix geometric method is utilized to evaluate various performance measures for this system and then, optimal solutions are obtained by enumeration techniques. The suggested queueing approach is based on a new perspective between the operation and marketing functions which captures the interactions between several factors including inventory level, price, OPP, and delivery lead time. Finally, parameter sensitivity analyses are carried out and the effect of demand on the profit function, the effect of prices ratio on completion rates ratio and buffer sizes ratio and the variations of profit function for different prices, completion percents, and buffer sizes are examined in both scenarios.

The effect of supply chain information management and information system infrastructure

2018 ◽  
Vol 31 (5) ◽  
pp. 751-770 ◽  
Author(s):  
Veera Pandiyan Kaliani Sundram ◽  
Atikah Shamsul Bahrin ◽  
Zarina Binti Abdul Munir ◽  
Ali Hussein Zolait
Keyword(s):  
Information System ◽  
Supply Chain ◽  
Information Management ◽  
Manufacturing Industry ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Theoretical Argument ◽  
Content Type ◽  
Manufacturing Performance ◽  
The Relationship

Purpose The purpose of this paper is to explain the relationship between supply chain information management, supply chain information system (IS) infrastructure, supply chain integration and the manufacturing performance of firms in manufacturing industry in Malaysia. Therefore, the study addresses a gap in research concerning the effect of supply chain information practices toward manufacturing performance. Design/methodology/approach The research design for this study employed the quantitative method using survey questionnaires that have been developed based on a thorough and detailed analysis of the relevant literature. Based on a sample consist of 248 usable data, mediated multiple regression analysis was used to examine the research model. Findings The findings indicate that supply chain integration fully mediates the relationship between supply chain information management and supply chain information system infrastructure (ISI) toward manufacturing performance. Research limitations/implications This research is limited to a particular sample: i.e. electrical and electronics manufacturing firms in Peninsular Malaysia. Thus, the results need to be generalized to encompass wider samples. Practical implications Organizations interest in making all members in their supply chain to communicate using information network to support managers in better decision making while adopting more enhanced information management and system infrastructure. As a plus, it helps in integrating various internal and external value chain processes across manufacturing firms in the organization’s supply chain network. As result, manufacturing firms could improve their performance in the long run. Originality/value The originality of this study lies in employing a newly developed framework-based existing theoretical argument to examine the effectiveness of supply chain information management and system infrastructure with an improved influence from supply chain integration toward the manufacturing performance.

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