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Feasibility principles for Downstream Demand Inference in supply chains

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Feasibility principles for Downstream Demand Inference in supply chains. / Ali, M. M.; Boylan, John.
In: Journal of the Operational Research Society, Vol. 62, No. 3, 01.03.2011, p. 474-482.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Ali, MM & Boylan, J 2011, 'Feasibility principles for Downstream Demand Inference in supply chains', Journal of the Operational Research Society, vol. 62, no. 3, pp. 474-482. https://doi.org/10.1057/jors.2010.82

APA

Ali, M. M., & Boylan, J. (2011). Feasibility principles for Downstream Demand Inference in supply chains. Journal of the Operational Research Society, 62(3), 474-482. https://doi.org/10.1057/jors.2010.82

Vancouver

Ali MM, Boylan J. Feasibility principles for Downstream Demand Inference in supply chains. Journal of the Operational Research Society. 2011 Mar 1;62(3):474-482. Epub 2010 Jul 14. doi: 10.1057/jors.2010.82

Author

Ali, M. M. ; Boylan, John. / Feasibility principles for Downstream Demand Inference in supply chains. In: Journal of the Operational Research Society. 2011 ; Vol. 62, No. 3. pp. 474-482.

Bibtex

@article{4f0770b0a7d94b80bd515cf35e72442b,
title = "Feasibility principles for Downstream Demand Inference in supply chains",
abstract = "Many companies are adopting strategies that enable Demand Information Sharing (DIS) between the supply chain links. Recently, a steady stream of research has identified mathematical relationships between demands and orders at any link in the supply chain. Based on these relationships and strict model assumptions, it has been suggested that the upstream member can infer the demand at the downstream member from their orders. If this is so, DIS will be of no value. In this paper, we argue that real-world modelling requires less restrictive assumptions. We present Feasibility Principles to show that it is not possible for an upstream member to accurately infer consumer demand under more realistic model assumptions. Thus, we conclude that DIS has value in supply chains. We then move our focus to the supply chain model assumptions in the papers arguing that there is value in sharing demand information. Using a simulation experiment, we show that the value of sharing demand information in terms of inventory reductions will increase under more realistic supply chain model assumptions.",
keywords = "Bullwhip effect, ARIMA modeling, Downstream demand inference, Information sharing, Supplement",
author = "Ali, {M. M.} and John Boylan",
note = "Accepted April 2010",
year = "2011",
month = mar,
day = "1",
doi = "10.1057/jors.2010.82",
language = "English",
volume = "62",
pages = "474--482",
journal = "Journal of the Operational Research Society",
issn = "0160-5682",
publisher = "Taylor and Francis Ltd.",
number = "3",

}

RIS

TY - JOUR

T1 - Feasibility principles for Downstream Demand Inference in supply chains

AU - Ali, M. M.

AU - Boylan, John

N1 - Accepted April 2010

PY - 2011/3/1

Y1 - 2011/3/1

N2 - Many companies are adopting strategies that enable Demand Information Sharing (DIS) between the supply chain links. Recently, a steady stream of research has identified mathematical relationships between demands and orders at any link in the supply chain. Based on these relationships and strict model assumptions, it has been suggested that the upstream member can infer the demand at the downstream member from their orders. If this is so, DIS will be of no value. In this paper, we argue that real-world modelling requires less restrictive assumptions. We present Feasibility Principles to show that it is not possible for an upstream member to accurately infer consumer demand under more realistic model assumptions. Thus, we conclude that DIS has value in supply chains. We then move our focus to the supply chain model assumptions in the papers arguing that there is value in sharing demand information. Using a simulation experiment, we show that the value of sharing demand information in terms of inventory reductions will increase under more realistic supply chain model assumptions.

AB - Many companies are adopting strategies that enable Demand Information Sharing (DIS) between the supply chain links. Recently, a steady stream of research has identified mathematical relationships between demands and orders at any link in the supply chain. Based on these relationships and strict model assumptions, it has been suggested that the upstream member can infer the demand at the downstream member from their orders. If this is so, DIS will be of no value. In this paper, we argue that real-world modelling requires less restrictive assumptions. We present Feasibility Principles to show that it is not possible for an upstream member to accurately infer consumer demand under more realistic model assumptions. Thus, we conclude that DIS has value in supply chains. We then move our focus to the supply chain model assumptions in the papers arguing that there is value in sharing demand information. Using a simulation experiment, we show that the value of sharing demand information in terms of inventory reductions will increase under more realistic supply chain model assumptions.

KW - Bullwhip effect

KW - ARIMA modeling

KW - Downstream demand inference

KW - Information sharing

KW - Supplement

U2 - 10.1057/jors.2010.82

DO - 10.1057/jors.2010.82

M3 - Journal article

VL - 62

SP - 474

EP - 482

JO - Journal of the Operational Research Society

JF - Journal of the Operational Research Society

SN - 0160-5682

IS - 3

ER -