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Forecasting and inventory performance in a two-stage supply chain with ARIMA(0,1,1) demand: theory and empirical analysis

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Forecasting and inventory performance in a two-stage supply chain with ARIMA(0,1,1) demand: theory and empirical analysis. / Babai, M. Z.; Ali, M. M.; Boylan, John et al.
In: International Journal of Production Economics, Vol. 143, No. 2, 01.06.2013, p. 463-471.

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

Harvard

Babai, MZ, Ali, MM, Boylan, J & Syntetos, AA 2013, 'Forecasting and inventory performance in a two-stage supply chain with ARIMA(0,1,1) demand: theory and empirical analysis', International Journal of Production Economics, vol. 143, no. 2, pp. 463-471. https://doi.org/10.1016/j.ijpe.2011.09.004

APA

Babai, M. Z., Ali, M. M., Boylan, J., & Syntetos, A. A. (2013). Forecasting and inventory performance in a two-stage supply chain with ARIMA(0,1,1) demand: theory and empirical analysis. International Journal of Production Economics, 143(2), 463-471. https://doi.org/10.1016/j.ijpe.2011.09.004

Vancouver

Babai MZ, Ali MM, Boylan J, Syntetos AA. Forecasting and inventory performance in a two-stage supply chain with ARIMA(0,1,1) demand: theory and empirical analysis. International Journal of Production Economics. 2013 Jun 1;143(2):463-471. doi: 10.1016/j.ijpe.2011.09.004

Author

Babai, M. Z. ; Ali, M. M. ; Boylan, John et al. / Forecasting and inventory performance in a two-stage supply chain with ARIMA(0,1,1) demand : theory and empirical analysis. In: International Journal of Production Economics. 2013 ; Vol. 143, No. 2. pp. 463-471.

Bibtex

@article{0eec0f1341084f04b48390a9394fdb9a,
title = "Forecasting and inventory performance in a two-stage supply chain with ARIMA(0,1,1) demand: theory and empirical analysis",
abstract = "The ARIMA(0,1,1) demand model has been analysed extensively by researchers and used widely by forecasting practitioners due to its attractive theoretical properties and empirical evidence in its support. However, no empirical investigations have been conducted in the academic literature to analyse demand forecasting and inventory performance under such a demand model. In this paper, we consider a supply chain formed by a manufacturer and a retailer facing an ARIMA(0,1,1) demand process. The relationship between the forecasting accuracy and inventory performance is analysed along with an investigation on the potential benefits of forecast information sharing between the retailer and the manufacturer. Results are obtained analytically but also empirically by means of experimentation with the sales data related to 329 Stock Keeping Units (SKUs) from a major European superstore. Our analysis contributes towards the development of the current state of knowledge in the areas of inventory forecasting and forecast information sharing and offers insights that should be valuable from the practitioner perspective.",
keywords = "Inventory, Forecasting, ARIMA demand, Supply chain, Information sharing",
author = "Babai, {M. Z.} and Ali, {M. M.} and John Boylan and Syntetos, {A. A.}",
year = "2013",
month = jun,
day = "1",
doi = "10.1016/j.ijpe.2011.09.004",
language = "English",
volume = "143",
pages = "463--471",
journal = "International Journal of Production Economics",
issn = "0925-5273",
publisher = "Elsevier Science B.V.",
number = "2",

}

RIS

TY - JOUR

T1 - Forecasting and inventory performance in a two-stage supply chain with ARIMA(0,1,1) demand

T2 - theory and empirical analysis

AU - Babai, M. Z.

AU - Ali, M. M.

AU - Boylan, John

AU - Syntetos, A. A.

PY - 2013/6/1

Y1 - 2013/6/1

N2 - The ARIMA(0,1,1) demand model has been analysed extensively by researchers and used widely by forecasting practitioners due to its attractive theoretical properties and empirical evidence in its support. However, no empirical investigations have been conducted in the academic literature to analyse demand forecasting and inventory performance under such a demand model. In this paper, we consider a supply chain formed by a manufacturer and a retailer facing an ARIMA(0,1,1) demand process. The relationship between the forecasting accuracy and inventory performance is analysed along with an investigation on the potential benefits of forecast information sharing between the retailer and the manufacturer. Results are obtained analytically but also empirically by means of experimentation with the sales data related to 329 Stock Keeping Units (SKUs) from a major European superstore. Our analysis contributes towards the development of the current state of knowledge in the areas of inventory forecasting and forecast information sharing and offers insights that should be valuable from the practitioner perspective.

AB - The ARIMA(0,1,1) demand model has been analysed extensively by researchers and used widely by forecasting practitioners due to its attractive theoretical properties and empirical evidence in its support. However, no empirical investigations have been conducted in the academic literature to analyse demand forecasting and inventory performance under such a demand model. In this paper, we consider a supply chain formed by a manufacturer and a retailer facing an ARIMA(0,1,1) demand process. The relationship between the forecasting accuracy and inventory performance is analysed along with an investigation on the potential benefits of forecast information sharing between the retailer and the manufacturer. Results are obtained analytically but also empirically by means of experimentation with the sales data related to 329 Stock Keeping Units (SKUs) from a major European superstore. Our analysis contributes towards the development of the current state of knowledge in the areas of inventory forecasting and forecast information sharing and offers insights that should be valuable from the practitioner perspective.

KW - Inventory

KW - Forecasting

KW - ARIMA demand

KW - Supply chain

KW - Information sharing

U2 - 10.1016/j.ijpe.2011.09.004

DO - 10.1016/j.ijpe.2011.09.004

M3 - Journal article

VL - 143

SP - 463

EP - 471

JO - International Journal of Production Economics

JF - International Journal of Production Economics

SN - 0925-5273

IS - 2

ER -