Title: A wider look at demand fluctuations and its relationship to manufacturing performances: empirical results

Authors: J.L.W. Lo, B. Rabenasolo, A-M. Jolly

Addresses: 25, The Quadrant, Abingdon Science Park, Abingdon, Oxford OX14 3YS, UK. ' Laboratory GEMTEX, ENSAIT (Ecole Nationale Superieure des Arts et Industries Textiles), 9 rue de l'Ermitage, BP 30329, F59056 Roubaix Cedex 01, France. ' Laboratory GEMTEX, ENSAIT (Ecole Nationale Superieure des Arts et Industries Textiles), 9 rue de l'Ermitage, BP 30329, F59056 Roubaix Cedex 01, France

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.

Keywords: demand fluctuations; manufacturing performance; customer-supplier relationship; garment industry; clothing industry; apparel industry; empirical results; benchmarking; performance measurement; pricing; delivery lead times; order frequency.

DOI: 10.1504/IJBPM.2007.011861

International Journal of Business Performance Management, 2007 Vol.9 No.2, pp.172 - 187

Published online: 28 Dec 2006 *

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