scholarly journals An Optimal Purchase Decision of Reusable Packaging in the Automotive Industry

2019 ◽  
Vol 11 (23) ◽  
pp. 6579 ◽  
Author(s):  
Byungsoo Na ◽  
Min Kyu Sim ◽  
Won Ju Lee
Keyword(s):  
Supply Chain ◽  
Automotive Industry ◽  
Lead Time ◽  
Investment Decision ◽  
Time Variability ◽  
Automotive Supply Chain ◽  
Operation Duration ◽  
Cost Efficient ◽  
Demand Variability ◽  
The Many

Among the many components of material delivery operations, packaging is one of the foundations of secure and cost-efficient on-time delivery. Current environmental concerns have increased the popularity of returnable packaging over disposable packaging. This study considers a supply chain in the automotive industry where a single supplier adopts returnable packages for delivery operations to a single recipient. If a returnable package is not available, then an expendable package will be used as a more expensive alternative. Thus, an investment decision on the number of returnable packages must be made prior to launching a returnable packaging system. Using the actual data from an automotive supply chain, this study conducts simulated experiments, under the uncertainty of future demand and required lead time of reverse logistics, to identify the optimal quantity of returnable packages. Sensitivity analysis is then performed by varying the assumptions on operation duration, demand variability, and lead time variability. In general, the results indicate that a greater initial purchase of returnable packages is desirable for longer operation duration, higher demand variability, and higher lead time variability. However, if operation duration is short and the uncertainty is high, then there may be little benefit in using reusable packages. These results generalize the findings from previous studies. This approach and solution can enhance reliable and efficient supply chain operations in the automotive industry and may be applied to other industries where packaging is important and expensive.

scholarly journals THE IMPACT OF THE COVID-19 PANDEMIC ON SUPPLY CHAINS IN THE AUTOMOTIVE INDUSTRY

2020 ◽  
Author(s):  
Goran Milovanovic ◽  
◽  
Tamara Stankovic ◽  
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Automotive Industry ◽  
Business Relationships ◽  
Automotive Supply Chain ◽  
Automotive Supply ◽  
The Impact ◽  
Insight Into ◽  
Chain Level

Health crises have an impact on supply chains, mainly by disrupting their regular activities. In this research, the authors have analyzed the impact that the Covid-19 pandemic has made on business relationships between supply chain partners in the automotive industry and their suppliers, which are mostly from territories where the initial outbreak of the SARS COV 2 virus occurred. The analysis shows that in some cases, there is a strong dependency between the pandemic and production levels. Being dependent prevents supply chains from maintaining stability and causes system vulnerabilities. The authors conclude their work with a thesis on the pronounced impact of the current pandemic on automotive supply chain activities. For the analysis to be complete, it is necessary to monitor changes in production levels further, since data for the current year still does not provide a realistic insight into all the consequences at the supply chain level.

Modelling the measures of supply chain performance in the Indian automotive industry

2015 ◽  
Vol 22 (4) ◽  
pp. 665-696 ◽  
Author(s):  
Rajesh Katiyar ◽  
Mukesh Kumar Barua ◽  
Purushottam L. Meena
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Automotive Industry ◽  
Lead Time ◽  
Matrix Multiplication ◽  
Supply Chain Performance ◽  
Key Factors ◽  
Order Entry ◽  
Interpretive Structural Modeling ◽  
Content Type

Purpose – The purpose of this paper is to investigate the interactions among the key factors of supply chain (SC) in the Indian automotive industry. These key factors are helpful to measure supply chain performance (SCP) and to improve the firm’s effectiveness. Design/methodology/approach – In this paper, an interpretive structural modeling with a fuzzy cross-impact matrix multiplication applied to classification-based approach is used to examine the interactions among the key factors of SCP measurement. Findings – The authors have identified the most dominant key factors used for measuring the performance in automotive SC. The results exhibit that the order lead-time and order entry method are the most significant key factors. These key factors have high driving power to measure SCP whereas the post-transaction measure of customer service and customer query time are highly dependent on other factors. Such relationships among the key factors can help a firm’s top management to make essential judgments in order to solve the overall SC problems and provide a better approach to proactively deal with problems. Originality/value – In this paper, the authors have explored the interactions among the key factors of the SCP in the Indian automotive industry.

An Approach for Setting Inventory Norms for a Two-Echelon Supply Chain

2013 ◽  
Vol 6 (4) ◽  
pp. 102-119 ◽  
Author(s):  
N. Ramkumar ◽  
P. Subramanian ◽  
T. T. Narendran ◽  
K. Ganesh
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Real Life ◽  
Vendor Managed Inventory ◽  
Two Phase ◽  
Phase Approach ◽  
Supply Chain Costs ◽  
Product Classification ◽  
Demand Variability

Managing inventories is crucial to the objective of minimizing supply chain costs. This paper presents an approach for setting inventory norms in context of a real-life case of an industry which practices Vendor Managed Inventory (VMI). The role of warehouses and the inventories held by them becomes significant in such an environment. This paper presents a two-phase approach to determine various components of inventory norms taking into account lead time and demand variability. Innovative strategic product classification has been done to decide upon stocking quantity at warehouses.

The Design and Evaluation of a Supply Chain Logistic Hub for Automobile and Parts Distribution

2008 ◽  
Vol 594 ◽  
pp. 119-131 ◽  
Author(s):  
Charles V. Trappey ◽  
Amy J.C. Trappey ◽  
C.S. Liu ◽  
W.T. Lee ◽  
Y.L. Hung
Keyword(s):  
Supply Chain ◽  
Automotive Industry ◽  
Business Models ◽  
Logistic Models ◽  
Global Strategy ◽  
Second Phase ◽  
Business Operations ◽  
Automotive Supply Chain ◽  
Automotive Supply ◽  
Operational Processes

Enterprises in Taiwan are facing global competition which requires enterprises to implement sound business models and maintain effective operational processes. The most pressing need is to develop global logistic processes and models that satisfy rapidly changing business and operational objectives. This research studies how the automotive industry in Taiwan has adopted its logistic hubs to improve international business operations and objectives. In the first phase of the study, Taiwan automotive firms were surveyed and their current (as-is) logistic models were derived. In the second phase, based on the industry characteristics and the company’s global strategy, the improved (to-be) logistic processes were derived. Further, a case of Taiwan automobile manufacturers is used to apply and demonstrate the to-be logistic models and evaluate the performance of the proposed models. The resulting framework for a global logistic hub is designed to improve the operations of automotive companies with respect to time and cost, as well as to ensure information sharing among automotive supply chain partners.

THE EFFECT OF LEAD-TIME ON THE SUPPLY CHAIN: THE MEAN VERSUS THE VARIANCE

2011 ◽  
Vol 10 (01) ◽  
pp. 175-185 ◽  
Author(s):  
XIN JAMES HE ◽  
XIAOBO XU ◽  
JACK C. HAYYA
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Inventory Systems ◽  
Time Variability ◽  
Inventory Cost ◽  
Safety Stock ◽  
Stochastic Inventory ◽  
Q Model ◽  
Total Inventory ◽  
The Mean

In a study on stochastic inventory systems, Chopra et al. (Decision Sciences35(1) (2004) 1–24) argue that decreasing lead time is the right lever if they want to cut inventories, not reducing lead time variability. According to Chopra et al., reducing the mean lead time, μ, is more important than reducing the lead time variance, σ2, to reduce total inventory cost via a reduced safety stock. This paper is a criticism of Chopra et al., where the optimal z was derived based upon a predetermined Q, instead of solving the optimal z and Q simultaneously in a (z, Q) inventory system. We argue that such an approach is inappropriate because the two decision variables, z and Q, are in general interdependent, and, moreover, reducing reorder point (safety stock), z, does not necessarily decrease the total inventory cost. We demonstrate by means of a truncated lead time (z, Q) model that it is lead time variability, not mean lead time, that affects the inventory policy and total supply chain cost.

scholarly journals Managing knowledge boundaries for open innovation – lessons from the automotive industry

2018 ◽  
Vol 38 (1) ◽  
pp. 230-248 ◽  
Author(s):  
Miriam Wilhelm ◽  
Wilfred Dolfsma
Keyword(s):  
Supply Chain ◽  
Automotive Industry ◽  
Open Innovation ◽  
Current Knowledge ◽  
Knowledge Flows ◽  
Longitudinal Case Study ◽  
Structured Interviews ◽  
Organizational Boundaries ◽  
Content Type ◽  
Automotive Supply Chain

Purpose The rising need to innovate and obtain knowledge from more distant knowledge sources calls for new innovation strategies and a better integration of other external actors who lie outside the traditional automotive supply chain. Such an open innovation strategy challenges organizational boundaries both on the firm and supply chain level, yet our understanding of the functioning of such boundaries and how they can be managed to allow for purposive knowledge flows is limited. The paper aims to discuss these issues. Design/methodology/approach In a longitudinal case study, the authors trace the development of the first open innovation network in the German automotive industry over a period of five years based on archival data, semi-structured interviews, and field observations. Findings While the automotive industry is advanced in collaborating with suppliers for innovation, routines for assessing and integrating ideas from sources outside the supply chain are still underdeveloped. The authors show which current knowledge boundaries pose obstacles for open innovation initiatives in this industry, and how they could be mediated through the involvement of gatekeepers. Originality/value The authors challenge and clarify the notion of the “permeability of organizational boundaries” in the open innovation literature and investigate the role of gatekeepers for open innovation.

Greening the Automotive Supply Chain

2012 ◽  
pp. 189-199
Author(s):  
Miti Garg
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Side Effects ◽  
Technology Adoption ◽  
Case Studies ◽  
Automotive Industry ◽  
Green Technology ◽  
Chain Management ◽  
Automotive Supply Chain ◽  
Automotive Supply

The word “green” today connotes less environmentally destructive practises that minimize damage to the environment and decrease the side- effects of modern day living. The challenges of modern day automotive supply chain management and logistics as well as green technology adoption have grown manifold in today’s profit-driven automotive industry. A few of these challenges are explored for- Jiangxi Chuaxing Hau Autos Co. Ltd., one of China’s growing automobile manufacturers and for Toyota, the world’s largest automaker in the following case studies.

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