Skip to main content
SpringerLink
Log in

Supply Chain Strategies to Sustain Economic and Customer Uncertainties

  • Chapter
  • First Online:
Flexible Strategies in VUCA Markets

Part of the book series: Flexible Systems Management ((FLEXSYS))

Abstract

Previous research showed that passenger car manufacturing sector gets affected due to economic volatility and customer behavior pattern. In course of economic slowdown, inventory builds up and production rate suffers. While during recovery, backlog increases causing customers to shift brand loyalty. Besides, customer’s preference tends to affect the supply chain of a firm too. In passenger car sector, changes in pre-designed models have significant bearing on the lead time. Delay in adopting changes sought by the customers’ results in longer production time and obsolescence of inventory. The impact of economic variations on sales of cars has been analyzed through multivariate regression, and the dimensions explaining the customers’ buying pattern have been identified through factor analysis of responses obtained from car buyers. The purpose of this chapter is to establish a system dynamics model, to study the effect of economic volatility and customer’s buying behavior on supply chain of passenger car firms. The proposed framework will enable supply chain managers to carry out policy experimentation under different volatile situations arising out of exogenous factors. The proposed model is expected to address the major challenge, i.e., when there is economic instability with changing customer preferences.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Bibhushan, Prakash A., & Wadhwa, B. (2014). Supply chain flexibility: Some perceptions. In Sushil & E. A. Stohr (Eds.), The flexible enterprise, Flexible Systems Management (pp. 321–331). New Delhi: Springer.

    Google Scholar 

  • Cariolle, J. (2012). Measuring macroeconomic volatility applications to export revenue data, 1970–2005, Fondation Pour Les Etudes Et Recherches Sur Le Development International. Working paper n°I14 “Innovative indicators” series March 2012.

    Google Scholar 

  • Chopra, S., & Meindl, P. (2001). Supply chain management: Strategy, planning, and operation (p. 457). New Jersey: Prentice Hall, Upper Saddle River.

    Google Scholar 

  • Christopher, M. (2005). Logistics and supply chain management: Creating value adding networks (3rd ed.), London, UK: Financial Times Prentice Hall.

    Google Scholar 

  • Coyle, R. G. (1977). Management system dynamics. London: Wiley.

    Google Scholar 

  • Dargay, J., & Gately, D. (1999). Income’s effect on car and vehicle ownership, worldwide: 1960–2015. Transportation Research. Part A: Policy and Practice, 33(2).

    Google Scholar 

  • Dargay, J., & Gately, D. (2001). Modelling global vehicle ownership. In Proceedings of the Ninth World Conference on Transport Research (pp. 22–27).

    Google Scholar 

  • Demiroğlu, U., & Yüncüler, Ç. (2016). Estimating light-vehicle sales in Turkey. Central Bank Review, 16(3), 93–108.

    Article  Google Scholar 

  • Dey, D., & Sinha, D. (2016). System dynamics simulation of a supply chain intelligence model. In A. Dwivedi (Ed.), Innovative solutions for implementing global supply chains in emerging markets (pp. 71–83). UK: University of Hull Business School.

    Google Scholar 

  • Dhir, S., Aniruddha, N. A., & Mital, A. (2014). Alliance network heterogeneity absorptive capacity and innovation performance: A framework for mediation and moderation effects, international. Journal of Strategic Business Alliances, 3(2–3), 168–178.

    Article  Google Scholar 

  • Dhir, S., & Mital, A. (2013). Value creation on bilateral cross-border joint ventures: Evidence from India. Strategic Change, 22(5–6), 307–326.

    Article  Google Scholar 

  • Eskeland, G., & Feyzioglu, T. (1997). Is demand for polluting goods manageable? An econometric study of car ownership and use in Mexico. Journal of Development Economics, 5(3), 423–445.

    Article  Google Scholar 

  • Forrester, J. W. (1961). Industrial, dynamics (p. 156). Cambridge, Massachusetts: M.I.T Press.

    Google Scholar 

  • Forrester, J. W. (1968). Principals of systems. Cambridge, Massachusetts: Wright Allen Press.

    Google Scholar 

  • Greenspan, A., & Cohen, D. (1999). Motor vehicle stocks, scrappage and sales. The Review of Economics and Statistics, 81(3), 369–383.

    Article  Google Scholar 

  • Gunasekaran, A., Dubey, R., & Singh, S. P. (2016). Flexible sustainable supply chain network design: Current trends, opportunities and future. Global Journal of Flexible Systems Management, 17(2), 109–112.

    Article  Google Scholar 

  • Gunasekaran, A., Lai, K. H., & Edwin Cheng, T. C. (2008). Responsive supply chain: A competitive strategy in a networked economy. Omega, 36(4), 549–564.

    Article  Google Scholar 

  • Gunawan, F. E., & Chandra, F. Y. (2014). Optimal averaging time for predicting traffic velocity using floating car data technique for advanced traveler information system. Procedia-Social and Behavioral Sciences, 138, 566–575.

    Article  Google Scholar 

  • Hamilton, B. W., & Macauley, M. K. (1998). Competition and car longevity, Working paper.

    Google Scholar 

  • Hnatkovska, V., & Loayza, N. (2005). Volatility and Growth. In J. Azeinman & B. Pinto (Eds.), Managing economic volatility and crises. Cambridge, Mass: Cambridge University Press.

    Google Scholar 

  • Jacobsen, M. R., & Van Benthem, A. A. (2015). Vehicle scrappage and gasoline policy. The American Economic Review, 105(3), 1312–1338.

    Article  Google Scholar 

  • Kahn, J. A. (1986). Gasoline prices and the used car market: A rational expectations asset price approach. The Quarterly Journal of Economics, 101(2), 323–340.

    Article  Google Scholar 

  • Khanra, S., & Dhir, S. (2017). Creating value in small-cap firms by mitigating risks of market volatility. Vision, 21(4), 350–355.

    Article  Google Scholar 

  • Kurien, G. P., & Qureshi, M. N. (2014). Measurement of flexibility and its benchmarking using data envelopment analysis in supply chains. In M. K. Nandakumar, Sanjay Jharkharia & Abhilash S. Nair (Eds.), Organizational flexibility and competitiveness, Flexible Systems Management (pp. 259–272). New Delhi: Springer.

    Google Scholar 

  • Mukhtar, M., Jailani, N., Abdullah, S., Yahya, Y., & Abdullah, Z. (2009). A framework for analyzing E-supply chains. European Journal of Scientific Research, 25(4), 649–662.

    Google Scholar 

  • Naik, A. (2016). http://auto.ndtv.com/news/maruti-suzuki-vitara-brezza-wins-cnb-viewers-choice-car-of-the-year-2017-163990, May 2, 2017.

  • Parameswar, N., Dhir, S., & Dhir, S. (2017). Banking on innovation, innovation in banking at ICICI bank. Global Business and Organizational Excellence, 36(2), 6–16.

    Article  Google Scholar 

  • Patel, J., Modi, A., & Paul, J. (2017). Pro-environmental behavior and socio-demographic factors in an emerging market. Asian Journal of Business Ethics, 6(2), 189–214.

    Article  Google Scholar 

  • Rota, M. F., Carcedo, J. M., & García, J. P. (2016). Dual approach for modelling demand saturation levels in the automobile market. The Gompertz curve: Macro versus Micro data. Investigación Económica, 75(296), 43–72.

    Article  Google Scholar 

  • Senge, P. (1990). The fifth discipline: The art and science of the learning organization. New York: Currency Doubleday.

    Google Scholar 

  • Sheffi, Y., & Rice, J. B. (2005). A supply chain view of the resilient enterprise. MIT Sloan Management Review, 47(1), 41–48.

    Google Scholar 

  • Stevenson, M., & Spring, M. (2007). Flexibility from a supply chain perspective: Definition and review. International Journal of Operations & Production Management, 27(7), 685–713.

    Article  Google Scholar 

  • Sushil, (1993). System dynamics—A practical approach for managerial problems. New Delhi: Wiley Eastern Ltd.

    Google Scholar 

  • Swafford, P. M., Ghosh, S., & Murthy, N. (2006). The antecedents of supply chain agility of a firm: Scale development and model testing. Journal of Operations Management, 24(2), 170–188.

    Article  Google Scholar 

  • Van der Velde, L.N. J., & Meijer, B. R. (2003). A system approach to supply chain design with a multinational for colorant and coatings. Retieved September 20, 2006 from http://ww.ifm.eng.ca.ac.uk/mcn/pdf_files/part6_5.pdf.

  • Wu, T., Zhao, H., & Ou, X. (2014). Vehicle ownership analysis based on GDP per Capita in China: 1963–2050. Sustainability, 6(8), 4877–4899.

    Article  Google Scholar 

Web References

Download references

Author information

Authors and Affiliations

  1. IIFT, Kolkata, India

    Deepankar Sinha

  2. City College of Commerce and Business Administration, Kolkata, India

    Debasri Dey

  3. Department of MCA, BCA, IGNOU Regional Centre Kolkata, Kolkata, India

    Debasri Dey

  4. NMIS, Mumbai, India

    Debasri Dey

Authors
  1. Deepankar Sinha
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Debasri Dey
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Debasri Dey .

Editor information

Editors and Affiliations

  1. Indian Institute of Technology Delhi, New Delhi, Delhi, India

    Sanjay Dhir

  2. Indian Institute of Technology Delhi , New Delhi, Delhi, India

    Sushil

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Sinha, D., Dey, D. (2018). Supply Chain Strategies to Sustain Economic and Customer Uncertainties. In: Dhir, S., Sushil (eds) Flexible Strategies in VUCA Markets. Flexible Systems Management. Springer, Singapore. https://doi.org/10.1007/978-981-10-8926-8_10

Download citation

Publish with us

Policies and ethics

Search

Navigation