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On the impact of order volatility in the European automotive sector

Childerhouse, P., Disney, Stephen Michael and Towill, Denis Royston 2008. On the impact of order volatility in the European automotive sector. International Journal of Production Economics 114 (1) , pp. 2-13. 10.1016/j.ijpe.2007.09.008

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Abstract

Order volatility is an unfortunate fact of life facing most suppliers of both products and services. In this paper we are concerned with establishing the magnitude of the problem faced by the European automotive sector. The evidence has been acquired via the site-based Quick Scan Audit Methodology (QSAM). Production scheduler strategy is thereby classified according to a new five-set schema as observed via individual value-stream volatilities. System variables have then been codified and correlated with customer order volatility. Powerful statistically significant relationships emerge from this evidence. This generally (but not wholly) supports intrinsic views on what constitutes good practice. A specific interface between supplier and OEM shows the existence of a positive loop that acts as a vicious circle to create unnecessary volatility in material flow.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HE Transportation and Communications
T Technology > TL Motor vehicles. Aeronautics. Astronautics
Uncontrolled Keywords: Supply chain audit; Vicious circles; Scheduler strategies; Bullwhip
Publisher: Elsevier
ISSN: 0925-5273
Date of First Compliant Deposit: 16 May 2016
Last Modified: 04 Jun 2017 13:48
URI: http://orca.cf.ac.uk/id/eprint/19652

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