Paper info: Information Structure of Buyer-Seller Relationship in the Automotive Industry and Consumer Electronics Industry - Empirical and Logical Study
Information Structure of Buyer-Seller Relationship in the Automotive Industry and Consumer Electronics Industry - Empirical and Logical Study
Hiroaki Seto and Michio Honda
Place of Publication
The paper was published at the 17th IMP-conference in Oslo, Norway in 2001.
The authors surveyed the automotive and consumer electronics industries in NorthAmerica and Japan between 1997 and 2001, and report that assembly manufacturers inthese industries placed orders in week N-2 for production in week N. However, theorder is supported by the 12-week rolling forecast, and more especially by the 4-weekforecast, which is sent in month N-1 for the production of month N. A Japanese U.S.-based automotive manufacturer sends the 4-week forecast to Tier 1, which also supplythe top three American automotive manufacturers. The 4-week forecast is useful forTiers 1 and 2 if replenishment-based production based on this forecast is to be realisedwith a high degree of precision. The 12-week forecast is also rolled in the consumerelectronics industry, particularly by notebook computer assembly manufacturers, and byTier 1, particularly semi-conductor manufacturers. However, the 4- week forecast is notused in this industry: VMI is used instead. This is why demand fluctuates seriously,which is a disadvantage for Tier 1.