Impact analysis of customized demand information sharing on supply chain performance

Abstract

In today's dynamic market environment, rapidly changing customer preferences increase the customization of products and the diversification of demand mix. Companies should understand how the demand mix influences supply chain performance and react properly to fulfil customer satisfaction as to what the customers want. This paper investigated the impact of information sharing of the demand mix on the supply chain performance, under increasing product customization, by changing customer demand pattern and production capacity. The results of simulation analysis demonstrated that a demand mix can be determined that produces the best supply chain performance. A real multi-echelon automotive supply chain was analysed for each of six performance measures and the demand mix information significantly influenced five of them. Demand variation and production capacity also resulted in significant impact on the performance measures.

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