Market responsive manufacturing for the automotive supply chain
Journal of Manufacturing Technology Management
ISSN: 1741-038X
Article publication date: 1 January 2004
Abstract
Building to order enables manufacturing to better respond to market conditions. The time lost between changes in customer preferences and product mix disappears and customer demand can both be anticipated and shaped by the sales system. An automotive build to order supply chain must be able to meet seasonality within markets, and understand the detailed demand volatility for certain elements of the complex product mix, from which much of the profitability is derived. Market responsive manufacturing entails adaptive and flexible production and supply capability in conjunction with real‐time market interaction through revenue management. The combination of late capacity setting and revenue management can enable the whole extended enterprise to operate as a single entity. This article outlines the demand volatility examined for automotive products, integrated revenue and demand management as a solution, and the subsequent order system investment requirements.
Keywords
Citation
Waller, B. (2004), "Market responsive manufacturing for the automotive supply chain", Journal of Manufacturing Technology Management, Vol. 15 No. 1, pp. 10-19. https://doi.org/10.1108/09576060410512194
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited