A wider look at demand fluctuations and its relationship to manufacturing performances: empirical results
by J.L.W. Lo, B. Rabenasolo, A-M. Jolly
International Journal of Business Performance Management (IJBPM), Vol. 9, No. 2, 2007

Abstract: This paper identifies the types of demand fluctuations and shows the impacts they have on certain manufacturing performances. Literature on demand fluctuations focuses on volume. It is argued that fluctuations in price, delivery lead time and order frequency should also be considered. Based on the performance data from a benchmarking study, relationships between demand fluctuation/demand fluctuation and demand fluctuation/manufacturing performance were tested using a non-parametric ranking method. Five important findings were obtained. First, demand fluctuations in the initial contact stage are related to those in the confirmation stage. Second, fluctuations in volume may be tolerated, as they do not have influences on manufacturing performances. Third, fluctuations in price, delivery lead time and order frequency are interrelated. Fourth, large fluctuations in price and delivery lead time result in longer lead time. Fifth, fluctuation in confirmed delivery lead time has the greatest impact on manufacturing performances.

Online publication date: Thu, 28-Dec-2006

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