Delayed demand information and dampened bullwhip effect |
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| Authors: | Xiaolong Zhang |
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| Affiliation: | Department of Information Systems and Decision Sciences, Information System and Science, Fairleigh Dickinson University, 285 Madison Ave, The Mansion M-MS2-04, Madison, NJ 07940, USA |
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| Abstract: | This paper considers an inventory setting in which the historical data used for demand forecasting is delayed. When the replenishment is controlled via an order-up-to policy, we show that such delays reduce the variability of the order history and dampen the bullwhip effect. We discuss the intuition behind this result. |
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| Keywords: | Information delay Forecasting Supply chain management Bullwhip effect |
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