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Collaborative Planning: Issues with Asymmetric Cost and Hold-Up in Automotive Supply Chains

In: Operations Research Proceedings 2008

Author

Listed:
  • Thomas Staeblein

    (Daimler AG, Research)

Abstract

Summary Supply chain optimization has emerged as an important topic in several industries. In the automotive industry supply chains are prevalently composed of independent agents with specific preferences, e.g. distinct firms or profit centers in holdings. In either case, one must expect that no single party has control over the entire chain, and no partner has the power to optimize the whole chain by hierarchical planning. Under such decentralized decisions a way to improve supply chain performance is achievable through coordination and synchronization. The field of collaborative planning offers novel coordination concepts for such situations. We characterize issues in such concepts in automotive supply chains under asymmetric cost allocations. Here, and as well in other industries, few assembly sites (mostly owned by OEM‘s) are linked to multiple suppliers in a converging structure. We find, that under such setting, an iterative negotiation-based process based on counter-proposals is little different to upstream-planning, as local supplier-side savings have comparatively small effects. Further, we study the interaction between collaborative planning and the hold-up problem (i.e. at least one party performs relationship-specific investments), as an additional characteristic in the automotive industry.

Suggested Citation

  • Thomas Staeblein, 2009. "Collaborative Planning: Issues with Asymmetric Cost and Hold-Up in Automotive Supply Chains," Springer Books, in: Bernhard Fleischmann & Karl-Heinz Borgwardt & Robert Klein & Axel Tuma (ed.), Operations Research Proceedings 2008, chapter 37, pages 227-232, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-00142-0_37
    DOI: 10.1007/978-3-642-00142-0_37
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