Hybrid production system: perspectives in supply chain risk management

Abstract

Purpose – From the perspective of the supply chain risk management (SCRM), this paper addresses the effects of a hybrid production system (make-to-stock and make-to-order) in order to know which risks can impact the production planning process at a large automaker in Brazil. Through the correlation of these themes, the purpose of this paper is to understand the relevant risks to the supply chain (SC). Design/methodology/approach – Before the field research, a theoretical approach was made on two themes. After theoretical analysis of a case study on the automaker and data collection, the work used the Pearson’s product moment correlation (r) and χ2 and Kolmogorov–Smirnov tests to assess the risk factors raised by the interviewed professionals, thus characterizing a mixed methodological approach (i.e. qualitative and quantitative). Findings – It was evidenced that many risks are the result of functional failures, such as input of incorrect information in the system, and many are inherent to managerial decisions when procedures and different paths of production are adopted. Additionally, it has been proven that the adoption of a hybrid production planning approach does not increase the risks to the SC and that the identified risks do not necessarily are included within the scope of SCRM. Originality/value – This study is characterized by an approach which combines SCRM and hybrid production system.

Keywords

• supply chain
• risks
• hybrid production system
• mts–mto