A study on semiconductor supply chain management in the automotive industry

Kenichi Nakashima, Thitma Sornmanapong

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Designing an effective supply chain and operating it efficiently is one of the most important issues for a large number of organizations. In the automotive industry, the fluctuating market and competitive pressure has forced organizations to create a better way to control their supply chain. One of the most significant approaches to production, which is implemented widely in the automotive industry, is "lean" production. Due to adoption of lean production by original equipment manufacturers (OEMs) and 1st-tier suppliers, there is a negative effect on 2nd-tier suppliers in terms of order fluctuations. This research examines the cause of demand fluctuation as a risk factor in the supply chain and considers the design of an optimized model taking into account 2nd-tier suppliers and the extent that the demand fluctuation problem can be reduced. Due to a lack of information flow between 1st-tier and 2nd-tier suppliers, demand accuracy is very low. In light of this situation, we consider the Newsboy model to determine the optimal order quantity to maximize the expected profit under different scenarios.

Original languageEnglish
Pages (from-to)284-292
Number of pages9
JournalJournal of Japan Industrial Management Association
Volume64
Issue number2
Publication statusPublished - 2013 Jan 1
Externally publishedYes

Keywords

  • 2-tier suppliers
  • Automotive industry
  • Demand fluctuation
  • Newsboy model
  • Uncertainty

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics

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