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

The authors surveyed the automotive and consumer electronics industries in North America and Japan between 1997 and 2001, and report that assembly manufacturers in these industries placed orders in week N-2 for production in week N. However, the order is supported by the 12-week rolling forecast, and more especially by the 4-week forecast, 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 supply the top three American automotive manufacturers. The 4-week forecast is useful for Tiers 1 and 2 if replenishment-based production based on this forecast is to be realised with a high degree of precision. The 12-week forecast is also rolled in the consumer electronics industry, particularly by notebook computer assembly manufacturers, and by Tier 1, particularly semi-conductor manufacturers. However, the 4week forecast is not used in this industry: VMI is used instead. This is why demand fluctuates seriously, which is a disadvantage for Tier 1.