Impacts of buyers' order batching on the supplier's demand correlation and capacity utilization in a branching supply chain
| Autor: | Sk Rhee Seung-Kyu Rhee, Hs Ahn Hyeon-Soo Ahn, Hd Jung Hee-Don Jung, Bh Ahn Byong Hun Ahn |
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| Rok vydání: | 1999 |
| Předmět: |
Demand management
Upstream (petroleum industry) Purchase order Strategy and Management Supply chain Management Science and Operations Research Industrial and Manufacturing Engineering Computer Science Applications Microeconomics Downstream (manufacturing) Order (exchange) Supplier relationship management Capacity utilization Business Industrial organization |
| Zdroj: | Production Planning & Control. 10:472-485 |
| ISSN: | 1366-5871 0953-7287 |
| DOI: | 10.1080/095372899233000 |
| Popis: | There are several ways for a manufacturer to cope with demand uncertainty, e.g. inventories, capacity and cash. Among these, this study focuses on the second one, the capacity, especially on the problem of investing in flexible facilities and enhancing their utilization via demand management. In a supply chain, demands that an upstream firm (supplier) faces are the purchase orders from the downstream members (buyers). We analyse the impacts of buyers' order batching on the supplier's demand correlation and capacity utilization in a simple branching supply chain, where a supplier does business with two buyers whose market demands are correlated. Our results show that: (i) a supplier whofacesa smaller demand correlation coefficient (i.e. closer to-1) would invest more in flexible facilities; (ii) an increase in order lot size mitigates the correlation of purchase orders; and (iii) a supplier whose facilities are flexible would prefer frequent orders with smaller lots only when market demands are highly nega... |
| Databáze: | OpenAIRE |
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