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Paper info: Information Structure of Buyer-Seller Relationship in the Automotive Industry and Consumer Electronics Industry - Empirical and Logical Study

Title


Information Structure of Buyer-Seller Relationship in the Automotive Industry and Consumer Electronics Industry - Empirical and Logical Study

Authors


Hiroaki Seto and Michio Honda

Place of Publication


The paper was published at the 17th IMP-conference in Oslo, Norway in 2001.

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Abstract


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.