| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 715129 | IFAC Proceedings Volumes | 2013 | 6 Pages |
Order crossovers occur when the delivery of orders is not in sequence with the issuing of orders. In automotive supply chains this may occur due to transportation mode choices, multiple suppliers, asynchronous capacity management at the suppliers, supply chain design choices, and speed differences in long supply chains.This study examines the problem that a Dutch first-tier supplier to the automotive industry in Europe faces when ordering items in Asia. Their information system and procurement procedures do not take the possibility of order crossovers into account. We have examined the consequences of neglecting these order crossovers with a situation where the occurrence of such order crossovers is used to advance the supply chain management and reduce the overall costs for the first-tier supplier.The difference between a non-crossover policy and our new model shows an average cost improvement of almost 6%.The proposed model is an extension of MRP ordering procedures and is build in an Excel spreadsheet.
