Risk Reduction and Prevention of Backorder Problem in Supply Chain of Automative Industry

Abstract

The objective of this article is to present the risk reduction and prevention of backorder problem in supply chain of automotive. According to the studies, Data has been collected by customer’s order information in last year to calculate the forecast volume by using a Moving Average calculation method and increasing the safety stock value by 20%. The result will be using for planning, forecasting and product replenishment onward. In order to reduce the risk and prevent product problems in the automotive industry. Which analyzes the risk factors that affect the supply chain risk, the automotive industry can be separated by 5 groups. The most of risk prevention methods, Entrepreneurs will have a guideline to reduce risk by focusing on reducing the opportunity of risk which will be occurring in the supply chain as much as possible, followed by focusing on reducing the impact of the risks. And also to reduce a backorder problem, opportunity cost. So, The company must have to deliver goods on time in order to meet in customers' requirement on time with cause a customers to have more confidence in our company, They will take this opportunity to expand the market in parallel with find a new one customer in automotive industrial.