Title: Two sides of a token: coordinating demand and supply at furniture wholesaler

Authors: Per Hilletofth; David Eriksson; Olli-Pekka Hilmola

Addresses: Department of Industrial Engineering and Management, School of Engineering, Jönköping University, P.O. Box 1026, SE-551 11 Jönköping, Sweden ' School of Engineering, University of Borås, SE-501 90 Borås, Sweden ' Lappeenranta University of Technology, Kouvola Research Unit, Prikaatintie 9, FIN-45100 Kouvola, Finland

Abstract: This research work investigates the occurrence of Demand-Supply Chain Management (DSCM) components in a Swedish furniture wholesaler that sources most of its products from China. Three of the eight main components of DSCM were identified in the case company and one component was not fully applicable. The case shows possible caveats of being demand-driven and highlights the need to balance demand and supply sides simultaneously. During economic crisis years 2008-2009, business has experienced extraordinary decline in sales and profitability, while holding considerable amount of inventory at hand. In the long term, supply chain strategy relying on Chinese manufacturing could face increasing challenges in total costs owing to currency changes, transportation costs increase and environmental regulation. [Received 20 December 2010; Revised 31 March 2011; Accepted 14 April 2011]

Keywords: demand-supply ccoordination; supply chain management; SCM; furniture wholesalers; Sweden; China; DCM; demand chain management.

DOI: 10.1504/IJMR.2012.046798

International Journal of Manufacturing Research, 2012 Vol.7 No.2, pp.101 - 122

Published online: 22 Nov 2014 *

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