2016
DOI: 10.1109/tem.2016.2560162
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Production Planning Using Evolving Demand Forecasts in the Automotive Industry

Abstract: This paper considers an auto parts supplier who receives order release updates from its customers and revises its production plan for future periods on a weekly basis. The inaccuracy of the order releases causes significant costs in the form of premium expedited transportation, production overtime, and excess inventory. This setting provides a rich context for studying order release variance, because the supply chain has adopted a just-in-time (JIT) approach where ideal inventory levels are kept at zero. This … Show more

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Cited by 17 publications
(7 citation statements)
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“…Novelty and relevance of the problem considered is achieved by carefully bounding the problem, relating it to current research and carrying out an investigation that is rigorous. As an example, the author recently carried out a research project with a major automotive supplier that combines rigor, relevance and practical value (Yildiz et al, 2016). Faculty and doctoral students must be encouraged to pursue sponsored research opportunities with industry.…”
Section: Sponsored Researchmentioning
confidence: 99%
“…Novelty and relevance of the problem considered is achieved by carefully bounding the problem, relating it to current research and carrying out an investigation that is rigorous. As an example, the author recently carried out a research project with a major automotive supplier that combines rigor, relevance and practical value (Yildiz et al, 2016). Faculty and doctoral students must be encouraged to pursue sponsored research opportunities with industry.…”
Section: Sponsored Researchmentioning
confidence: 99%
“…2.1. Information-sharing-based SCP model (VIS-P) During the recent years, the vast majority of SCP models considered Information Sharing the key element for improving SC performances (Yildiz, Duhadway, Narasimhan, & Narayanan, 2016). SC players communicate production plans, purchasing orders, customer orders and inventory levels to their SC partners in order to facilitate them in defining the timing of production orders and purchasing orders (Pan, Nigrelli, Ballot, Sarraj, & Yang, 2015).…”
Section: Research Backgroundmentioning
confidence: 99%
“…We consider a three-tier supply chain composed of a focal company (part manufacturer in automotive industry), potential suppliers and customers. The automotive industry provides a good context for studying various supply chain problems, including supplier selection and risk management, as many auto manufacturers operate in a JIT environment and expect very high customer service and high reliability from their suppliers even if that means extra costs (Yildiz et al, 2016). We assume that there are multiple customers, but one of these customers is more important than the rest and designated as the "main customer" (see Figure 1), which is quite common for automotive parts manufacturers.…”
Section: Problem Descriptionmentioning
confidence: 99%