Factors influencing the design of build-to-order supply chains

Abstract

The authors have been involved in an applied research project at a mid-volume manufacturer of passenger vehicles, at one of its key module suppliers and several second-tier component suppliers. The purpose of the study was to identify the necessary pre-conditions for applying build-to-order concepts to supply chains. A prototype Internet-enabled supply chain was also developed in order to assess the feasibility of providing final assembly schedules to first and second-tier module and component suppliers. In this paper, the authors suggest an operational design for the Internet-enablement of an automotive supply chain and explore the consequences of final assembly schedule stability on build-to-order capability and on plant and supply chain performance.