A behavioral experiment on inventory management with supply chain disruption

Sarkar, Sourish; Kumar, Sanjay

doi:10.1016/j.ijpe.2015.07.032

Cited by 75 publications

(45 citation statements)

References 60 publications

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“…So the disruption information is not symmetric between the anticipants of supply chain. The experiment in Sarkar and Kumar confirms that the asymmetry of demand disruption information reduces the efficiency of supply chain [16]. Asymmetric information leads to low supply chain efficiency [17], so lots of research focuses on coordinating the supply 2 Mathematical Problems in Engineering chains with asymmetric information [18][19][20][21][22][23].…”

Section: Introductionmentioning

confidence: 84%

Informed Principal Model and Contract in Supply Chain with Demand Disruption Asymmetric Information

Zhang

Jiang

2016

Mathematical Problems in Engineering

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Because of the frequency and disastrous influence, the supply chain disruption has caused extensive concern both in the industry and in the academia. In a supply chain with one manufacturer and one retailer, the demand of the retailer is uncertain and meanwhile may suffer disruption with a probability. Taking the demand disruption probability as the retailer’s asymmetric information, an informed principal model with the retailer as the principal is explored to make the contract. The retailer can show its information to the manufacturer through the contract. It is found out that the high-risk retailer intends to pretend to be the low-risk one. So the separating contract is given through the low-information-intensity allocation, in which the order quantity and the transferring payment for the low-risk retailer distort upwards, but those of high-risk retailer do not distort. In order to reduce the signaling cost which the low-risk retailer pays, the interim efficient model is introduced, which ends up with the order quantity and transferring payment distorting upwards again but less than before. In the numerical examples, with two different mutation probabilities, the informed principal contracts show the application of the informed principal model in the supply chain with demand disruption.

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Section: Introductionmentioning

confidence: 84%

Informed Principal Model and Contract in Supply Chain with Demand Disruption Asymmetric Information

Zhang

Jiang

2016

Mathematical Problems in Engineering

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“…In particular, Kim et al [28] used a simulation model ‖SISCO‖ to investigate how stochastic lead times, information sharing and quality of information affect the supply chain under a periodic order-up-to inventory policy. Second approach, -Beer Game‖ pioneered by Sterman [29] and followed by Croson and Donohue [30][31], Haines et al [32] and Sarkar and Kumar [33] has mainly addressed the behavioral aspect of bullwhip effect. The third approach initiated by Lee [4][5] introduced four main causes of bullwhip effect such as demand forecast updating (also [34][35][36][37] provide more elaborate analysis about forecasting methods), order inflation or order rationing, order batching, and price fluctuation and concludes that these factors methodically impair the performance of supply chains.…”

Section: Literature Review 21 Bullwhip Effectmentioning

confidence: 99%

Modeling Stock-out Loss and Overstocking Loss Generated by Bullwhip Effect

2018

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Although the literature of the supply chain is teemed with the analysis of the bullwhip effect, few studies regarding the impact of the bullwhip effect or demand distortion on the supply chain profit have been done. Hence, we introduce the concept of Distance to Loss (DL), which is a function of the retailer's selling price, the manufacturer's wholesaler price, the end item's salvage value, the retailer's expected demand and the retailer's variance of demand. This concept can perfectly model both stock-out loss and overstocking loss emanated by the bullwhip effect and combines both the newsvendor model and credit risk concepts. Our findings are based on an experimental design and are profoundly in line with previous research. In particular, our model indicates that variations in demand parameters, retailer's selling price and manufacturer's wholesaler price impinge on the retailer's DL, whereas a slight increase in the salvage value negligibly affect the retailer's DL.

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“…The risk of inventory deficiency is increased due to the unreliability of suppliers. It can be the reason for disruption of the procurement continuity, customer service level reduction and costs increase [6,[8][9][10].…”

Section: Identification Of the Most Important Issuesmentioning

confidence: 99%

“…It results from the need of holding the higher inventory level in the enterprise. The higher inventory level also means a higher risk of unused inventory which also causes generating certain costs [8][9][10].…”

Section: Identification Of the Most Important Issuesmentioning

confidence: 99%

Application of Specific Theory of Constraints Technique for the Identification of Main Causes of Negative Consequences within Procurement Logistics

Kapustina

Chovancová

Klapita

2017

LOGI – Scientific Journal on Transport and Logistics

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Abstract:The paper presents a concrete example of the selected Theory of Constraints (TOC) technique implementation in order to identify the main causes of undesirable consequences in the context of supply logistics issues. Determining the undesirable consequences of supply logistics is primarily related to the adverse impact on costs, profitability and quality of outsourcing enterprise which provide services in supply chain field. Particularly, this implementation includes individual steps of the process related to the creation of the specific TOC technique. The outcome is to identify the main causes which have the most significant impact on the negative consequences.

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A behavioral experiment on inventory management with supply chain disruption

Cited by 75 publications

References 60 publications

Informed Principal Model and Contract in Supply Chain with Demand Disruption Asymmetric Information

Informed Principal Model and Contract in Supply Chain with Demand Disruption Asymmetric Information

Modeling Stock-out Loss and Overstocking Loss Generated by Bullwhip Effect

Application of Specific Theory of Constraints Technique for the Identification of Main Causes of Negative Consequences within Procurement Logistics

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