The resource allocation problem for demand forecasting and performance measurement |
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| Authors: | Ling-Chieh Kung Ying-Ju Chen |
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| Affiliation: | Department of Industrial Engineering & Operations Research, University of California, Berkeley, CA 94720, United States |
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| Abstract: | ![]()
We consider a retailer investing in two monitoring functions for unobservable demand and salesperson’s effort. We show that improving effort monitoring is more effective. Moreover, demand monitoring may be less preferable when it becomes relatively cheaper and balancing these two may be worse when they become more complementary. |
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| Keywords: | Information asymmetry Demand forecasting Performance measurement Resource allocation |
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