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Research output: Working paper
Research output: Working paper
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TY - UNPB
T1 - Impact of Information Exchange on Supplier Forecasting Performance
AU - Trapero Arenas, J R
AU - Kourentzes, N
AU - Fildes, R A
PY - 2010
Y1 - 2010
N2 - Forecasts of demand are crucial to drive supply chains and enterprise resource planning systems. Usually, well-known univariate methods that work automatically such as exponential smoothing are employed to accomplish such forecasts. The traditional Supply Chain relies on a decentralised system where each member feeds its own Forecasting Support System (FSS) with incoming orders from direct customers. Nevertheless, other collaboration schemes are also possible, for instance, the Information Exchange framework allows demand information to be shared between the supplier and the retailer. Current theoretical models have shown the limited circumstances where retailer information is valuable to the supplier. However, there has been very little empirical work carried out. This works assesses the role of sharing market sales information obtained by the retailer on the supplier forecasting accuracy. Data have been collected from a manufacturer of domestic cleaning products and a major UK grocery retailer to show the circumstances where information sharing leads to improved accuracy. We find significant evidence of benefits through information sharing.
AB - Forecasts of demand are crucial to drive supply chains and enterprise resource planning systems. Usually, well-known univariate methods that work automatically such as exponential smoothing are employed to accomplish such forecasts. The traditional Supply Chain relies on a decentralised system where each member feeds its own Forecasting Support System (FSS) with incoming orders from direct customers. Nevertheless, other collaboration schemes are also possible, for instance, the Information Exchange framework allows demand information to be shared between the supplier and the retailer. Current theoretical models have shown the limited circumstances where retailer information is valuable to the supplier. However, there has been very little empirical work carried out. This works assesses the role of sharing market sales information obtained by the retailer on the supplier forecasting accuracy. Data have been collected from a manufacturer of domestic cleaning products and a major UK grocery retailer to show the circumstances where information sharing leads to improved accuracy. We find significant evidence of benefits through information sharing.
KW - Bullwhip effect
KW - Supply chain
KW - Supply chain collaboration
KW - Bullwhip ratio
KW - Neural Networks
M3 - Working paper
T3 - Management Science Working Paper Series
BT - Impact of Information Exchange on Supplier Forecasting Performance
PB - The Department of Management Science
CY - Lancaster University
ER -