Demand variability and value of information sharing in the supply chain. A case study in the automotive industry

This paper presents an analysis of demand variability based on a case study coming from the automotive supply chain. We focus on two links in this chain: the vehicle assembly plant and its supplier who produces mechanical parts. We analyze the variability of the demand expressed by assembly plants on a given period. Beyond the variability related to end customers, we identify two main causes of this variability: the changes of production levels in these plants and the distortion effect generated by information processing. Moreover, we show the importance of improving the existing methods of coordination and we illustrate the value of sharing with suppliers some information owned by assembly plants. © 2017 Lavoisier.