Supply Chain Design for Car Manufacturing

Running head: SUPPLY CHAIN DESIGN
SUPPLY CHAIN DESIGN
Supply Chain of Car Manufacturing
Name of the Student:
Name of the University:
Author Note:

SUPPLY CHAIN DESIGN 1
Introduction:
The aim of this study is to carry out a literature review of the supply chain design of
car manufacturing.
Step 1: Supply Chain Design
Car manufacturing supply chain:
Explanation of design and structure of car manufacturing supply chain and use of network
model in Car manufacturing supply chain in Australia:
Nodes:
Flow of product:
Risks:
Decisions:
Authorities:
Disruptions:
Stakeholders:
Step 2: Supply Chain Analysis
In the view point of Wang, Lai and Shi (2011), manufacturing systems and the
operation in supply chain and logistics are important economic activities as they remain a tool
for business activities and as a competitive means in the market where the company operates.
In order to remain competitive in the market, the companies are coming up with new plans
and ideas to spend the minimum time and expense for the inventory and the supply chain.

SUPPLY CHAIN DESIGN 2
The main objective of the manufacturers is to balance the inventories between the
requirements of the customers and the production capacity. As pointed out by Pishvaee, M.S.,
Rabbani and Torabi (2011), manufacturing management is a reconcile process that needs a
closed tied up with the inventory management. This definitely requires a swing in the
production rate as well as the stock and the inventory management. This level is commonly
known as the bullwhip effect. This indicates the fact that stock level variability in the supply
chain process can tend to higher in upstream rather than downstream. There has to be a
smooth transportation system so that maximum advantage can be gained in terms of
supporting the supply chain process. In the article, Elhedhli and Merrick (2012) discussed
that there can be fluctuation in the demand of the products and supply chain can never be
termed as the only reason behind this process. The demand volatility can be caused by several
external as well as internal forces. The supply chain process co-ordinates and holistically
integrates the information flow. The boom or lack of the demand of products will ultimately
generate a bull whip effect between the inbound, in house and the outbound logistics. The
mathematical design used in this research paper tried to focus on the fact that intra-
organisational supply chain produces the similar pattern as that of the bull whip effect in both
the time and the space considering a number of fundamental properties and characteristics of
bullwhip but under a single company.
In the paper, Pishvaee and Razmi (2012) discussed about the theory of swift, even
flow of productivity for the manufacturing process that falls with the increase in the
variability associated with the material flow. It should be understood that internal processes
are the own processes of a company and the most accessible areas to influence with the high
wealth of knowledge that would lead to an easy access to the real time data. As stated by
Javid and Azad (2010), demand amplification is self-induced by some internal mechanism.
There have been many studies that shows the real variability in demand from the customers

SUPPLY CHAIN DESIGN 3
and thus, demand is definitely a great issue when it comes to the manufacturing and the
supply chain. In the research paper, Farahani et al. (2014) discussed about the internal supply
chain structure that shows the interaction of the system variables by flow of materials along
with information. The material flow is represented by the rate variables while the
accumulation of the flow of materials is represented by stock variables.
In this respect, Baghalian, Rezapour and Farahani (2013) mentioned that in the car
manufacturing companies, a low aggregated data generally leads to a higher variability
compared with the high aggregated data that of a multi company context. There can be a
possibility of very low incoming standard deviation rate but that would lead to tendency of
higher amplifications. In case, internal oscillation occurs, this will definitely result from the
non-linear and the delayed interactions of the internal process of supply chain. Dash is of the
opinion that the freight forwarder should be of also integrating the process into schedule and
provide with certain collective advices.
The manufacturing companies have identified agility as a crucial factor for their
survival and competitiveness. Agility is the way of overcoming the unexpected challenges
and opportunities. In the view point of Jabbarzadeh, Fahimnia and Seuring (2014), the
manufacturing companies should have the ability to understand the demand of the market and
depending on those market opportunities, the knowledge and relationship will speed. Agility
is definitely considered as the win win situation but the supply chain process should also
align with the network and the operations of the dynamic and turbulent nature of the market.
If there is not a systematic approach taken by the manufacturing companies, this will not
allow the necessary proficiency in change. Therefore, supply chain is always depended on