Delayed demand information and dampened bullwhip effect
Operations Research Letters（2005）
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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Key words
supply chain management,bullwhip effect,historical data,order history,order-up-to policy,information delay,delayed demand information,forecasting,demand forecasting
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