Reduction of the value of information sharing as demand becomes strongly auto-correlated

International Journal of Production Economics

Volumn 181, Issue , 2016, Pages 130-135

  Babai, M Z ^a   Boylan, J E ^b   Syntetos, A A ^c   Ali, M M ^d  

^a KEDGE BUSINESS SCHOOL   (France)

^b LANCASTER UNIVERSITY   (United Kingdom)

^c CARDIFF UNIVERSITY   (United Kingdom)

^d Institute for Clean Growth and Future Mobility   (United Kingdom)

Author keywords

Autoregressive demand; Bullwhip effect; Information sharing; Supply chain

Indexed keywords

INFORMATION ANALYSIS; SUPPLY CHAINS;

AUTO-CORRELATED DEMAND; AUTO-REGRESSIVE; AUTOREGRESSIVE PARAMETERS; BULLWHIP EFFECTS; INCREASING FUNCTIONS; INFORMATION SHARING; INVENTORY REDUCTIONS; VALUE OF INFORMATION SHARING;

INFORMATION DISSEMINATION;

EID: 84930323359     PISSN: 09255273     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijpe.2015.05.005     Document Type: Article

References (49)

1. Agrawal, S., Sengupta, R., Shanker, K., Impact of information sharing and lead time on bullwhip effect and on-hand inventory. Eur. J. Oper. Res. 192 (2009), 576–593.
2. Ali, M.M., Boylan, J.E., Feasibility principles for downstream demand inference in supply chains. J. Oper. Res. Soc. 62 (2011), 474–482.
3. Ali, M.M., Boylan, J.E., On the effect of non-optimal forecasting methods on supply chain downstream demand. IMA J. Manag. Math. 23 (2012), 81–98.
4. Ali, M.M., Boylan, J.E., Syntetos, A.A., Forecast errors and inventory performance under forecast information sharing. Int. J. Forecast. 28 (2012), 830–841.
5. Babai, M.Z., Ali, M.M., Boylan, J.E., Syntetos, A.A., Forecasting and inventory performance in a two-stage supply chain with ARIMA (0,1,1) demand: Theory and empirical analysis. Int. J. Prod. Econ. 157 (2013), 212–219.
6. Barlas, Y., Gunduz, B., Demand forecasting and sharing strategies to reduce fluctuations and the bullwhip effect in supply chains. J. Oper. Res. Soc. 62 (2011), 458–473.
7. Boone, T., Ganeshan, R., The value of information sharing in the retail chain: two case studies. Foresight 9 (2008), 12–17.
8. Box, G.E.P., Jenkins, G.M., Time series analysis: forecasting and control, 2nd ed., 1976, Holden Day, San Francisco.
9. Cachon, G.P., Managing supply chain demand variability with scheduled ordering policies. Manag. Sci. 45 (1999), 843–856.
10. Cachon, G.P., Fisher, M., Supply chain inventory management and the value of shared information. Manag. Sci. 46 (2000), 1032–1048.
11. Cannella, S., Order-up-to policies in information exchange supply chains. Appl. Math. Model. 38 (2014), 5553–5561.
12. Cannella, S., Ciancimino, E., On the bullwhip avoidance phase: supply chain collaboration and order smoothing. Int. J. Prod. Res. 48 (2010), 6739–6776.
13. Cannella, S., Ciancimino, E., Framinan, J.M., Inventory policies and information sharing in multi-echelon supply chains. Prod. Plan. Control 22 (2011), 649–659.
14. Cheng, T.C.E., Wu, Y., The impact of information sharing in a two-level supply chain with multiple retailers. J. Oper. Res. Soc. 56 (2005), 1159–1165.
15. Ciancimino, E., Cannella, S., Bruccoleri, M., Framinan, J.M., On the bullwhip avoidance phase: the synchronised supply chain. Eur. J. Oper. Res. 221 (2012), 49–63.
16. Dejonckheere, J., Disney, S.M., Lambrecht, M.R., Towill, D.R., Measuring and avoiding the bullwhip effect: a control theoretic approach. Eur. J. Oper. Res. 147 (2003), 567–590.
17. Dejonckheere, J., Disney, S.M., Lambrecht, M.R., Towill, D.R., The impact of information enrichment on the bullwhip effect in supply chains: a control engineering perspective. Eur. J. Oper. Res. 153 (2004), 727–750.
18. Disney, S.M., Supply chain aperiodicity, bullwhip and stability analysis with Jury׳s inners. IMA J. Manag. Math. 19 (2008), 101–116.
19. Disney, S.M., Lambrecht, M., Towill, D.R., Van de Velde, W., The value of coordination in a two-echelon supply chain. IIE Trans. 40 (2008), 341–355.
20. Disney, S.M., Lambrecht, M., On replenishment rules, forecasting, and the bullwhip effect in supply chains. Foundations and Trends in Technology. Inf. Oper. Manag. 2 (2008), 1–80.
21. Disney, S.M., Naim, M.M., Potter, A., Assessing the impact of e-business on supply chain dynamics. Int. J. Prod. Econ. 89 (2004), 109–118.
22. Domínguez, R., Cannella, S., Framinan, J.M., On bullwhip-limiting strategies in divergent supply chain networks. Comp. Ind. Eng. 73 (2014), 85–95.
23. Dong, Y., Dresner, M., Yao, Y., Beyond information sharing: an empirical analysis of vendor-managed inventory. Prod. Oper. Manag. 23 (2014), 817–828.
24. Erkip, N., Hausman, W.H., Nahmias, S., Optimal centralized ordering policies in multi-echelon inventory systems with correlated demands. Manag. Sci. 36:3 (1990), 381–392.
25. Fildes, R., Nikolopoulos, K., Crone, S., Syntetos, A.A., Forecasting and operational research: a review. J. Oper. Res. Soc. 59 (2008), 1150–1172.
26. Gaur, V, Giloni, A., Seshadri, S., Information sharing in a supply chain under ARMA demand. Manag. Sci. 51 (2005), 961–969.
27. Gilbert, K., An ARIMA supply chain model. Manag. Sci. 51 (2005), 305–310.
28. Holland, W., Sodhi, M.S., Quantifying the effect of batch size and order errors on the bullwhip effect using simulation. Int. J. Logist. Res. Appl. 7 (2004), 251–261.
29. Hosoda, T., Disney, S.M., On variance amplification in a three-echelon supply chain with minimum mean square error forecasting. OMEGA: Int. J. Manag. Sci. 34 (2006), 344–358.
30. Hosoda, T., Naim, M.M., Disney, S.M., Potter, A., Is there a benefit to sharing market sales information? Linking theory and practice. Comput. Ind. Eng. 54 (2008), 315–326.
31. Kouvelis, P., Chambers, C., Wang, H., Supply chain management research and production and operations management: review, trends, and opportunities. Prod. Oper. Manag. 15:3 (2006), 449–469.
32. Kulp, S.C., Lee, H.L., Ofek, E., Manufacturer benefits from information integration with retail customers. Manag. Sci. 50 (2004), 431–444.
33. Lee, H.L., Padmanabhan, V., Whang, S., Information distortion in a supply chain: the bullwhip effect. Manag. Sci. 43 (1997), 546–558.
34. Lee, H.L., Whang, S., Information sharing in a supply chain. Int. J. Manuf. Technol. Manag. 1 (2000), 79–93.
35. Lee, H.L., So, K.C., Tang, C.S., The value of information sharing in a two-level supply chain. Manag. Sci. 46 (2000), 626–643.
36. Luong, H.T., Measure of bullwhip effect in supply chains with autoregressive demand process. Eur. J. Oper. Res. 180 (2007), 1086–1097.
37. Machuca, J.A.D., Barajas, R.P., The impact of electronic data interchange on reducing bullwhip effect and supply chain inventory costs. Transp. Res. Part E: Logist. Transp. Rev. 40 (2004), 209–228.
38. Najafi, M., Zanjirani Farahani, R., New forecasting insights on the bullwhip effect in a supply chain. IMA J. Manag. Math. 25 (2014), 259–286.
39. Noblesse, A.M., Boute, R.N., Lambrecht, M.R., van Houdt, B., Characterizing order processes of continuous review (s; S) and (r; nQ) policies. Eur. J. Oper. Res. 236 (2014), 534–547.
40. Raghunathan, S., Information sharing in a supply chain: a note on its value when demand is non-stationary. Manag. Sci. 47 (2001), 605–610.
41. Raghunathan, S., Impact of demand correlation on the value of and incentives for information sharing in a supply chain. Eur. J. Oper. Res. 146 (2003), 634–649.
42. Trapero, J.R., Kourentzes, N., Fildes, R., Impact of information exchange on supplier forecasting performance. Omega 40 (2012), 738–747.
43. Yao, Y., Dresner, M., The inventory value of information sharing, continuous replenishment and vendor-managed inventory. Transp. Res. Part E 44 (2008), 361–378.
44. Yu, Z., Yan, H., Cheng, T.C.E., Benefits of information sharing with supply chain partnerships. Ind. Manag. Data Syst. 101 (2001), 114–121.
45. Yu, Z., Yan, H., Cheng, T.C.E., Modelling the benefits of information sharing-based partnerships in a two-level supply chain. J. Oper. Res. Soc. 53 (2002), 436–446.
46. Zhang, X., Evolution of ARMA demand in supply chains. Manuf. Serv. Oper. Manag. 6 (2004), 195–198.
47. Zhang, X., Impact of forecasting methods on the bullwhip effect. Int. J. Prod. Econ. 88 (2004), 15–27.
48. Zhang, J., Chen, J., Coordination of information sharing in a supply chain. Int. J. Prod. Econ. 143 (2013), 178–187.
49. Zhou, H., Benton, W. Jr, Supply chain practice and information sharing. J. Oper. Manag. 25 (2007), 1348–1365.