Collaborative planning forecasting and replenishment: new solutions needed for mass collaboration

Holmström, Jan; Främling, Kary; Kaipia, Riikka; Saranen, Juha

doi:10.1108/13598540210436595

Cited by 128 publications

(83 citation statements)

References 5 publications

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“…Because of T ∈ (0, 1), Equation (2) indicates that the average demand µ S is a value between the retailer's ordered quantity µ RS and the historical average demand µ 0 . According to Equation (2), we have lim…”

Section: Decisions In Decentralised Patternmentioning

confidence: 99%

See 1 more Smart Citation

Sustainable Regulation of Information Sharing with Electronic Data Interchange by a Trust-Embedded Contract

Han

Dong

2017

Sustainability

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This paper studies the risks in demand information sharing applications by electronic soft-orders using electronic data interchange (EDI) systems in e-commerce and aims to suggest a sustainable regulation mechanism with a trust-embedded contract. In a supply chain with one retailer and one supplier, the retailer solicits private forecasted demand and places soft-orders via EDI to the supplier. To ensure abundant supply, the retailer has an incentive to inflate her soft-orders, which potentially harms the credible information sharing and sustainability of business cooperation. Normally, the degree to which the supplier relies on the retailer's order information is specified by trust, which is evaluated according to the retailer's reputation and supplier's intuition in this study. Based on standard game theory, we find that both the retailer's order and the quantity of supplier prepared materials are independent of the retailer's forecast. Therefore, EDI based information sharing in e-commerce without a regulation mechanism leads to inefficient demand information sharing. Since both the supplier and retailer are proved to faces huge of potential profit losses due to the failure of information sharing, the commerce by EDI based information sharing is full of risk and unsustainable. Therefore, a regulation mechanism that leaded by the retailer is proposed to establish 'win-win' sustainable cooperation. Numerical experiments highlight the value of trust, the impact of reputation and intuition in decisions, and the effectiveness of the regulation mechanism by a cost-sharing contract.

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Section: Decisions In Decentralised Patternmentioning

confidence: 99%

“…These costless, non-binding and nonverifiable type of orders are employed to quickly and directly transfer market information to suppliers [2]. In the last decades, buyers, with the help of modern technologies, can shop across many different channels, including physical store, laptop, smartphones, among others [3].…”

Section: Introductionmentioning

confidence: 99%

Sustainable Regulation of Information Sharing with Electronic Data Interchange by a Trust-Embedded Contract

Han

Dong

2017

Sustainability

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“…This indicates that the concept of CPFR is not exclusive to consumer goods organisations and retailers, but is more widespread across multiple industries. Holmstr ö m et al 8 provide an example around Nabisco and Wegman ' s with their collaborative approach including the benefi ts generated, such as increase in sales and reducing a day ' s supply., It thus seems that the benefi ts generated by CPFR are quite considerable and if applied to various industries should lead to greater results across all industries and those organisations that apply it.…”

Section: Collaborative Planning Forecasting and Replenishmentmentioning

confidence: 99%

Estimating benefits of Demand Sensing for consumer goods organisations

Folinas

Rabi²

2012

J Database Mark Cust Strategy Manag

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The main objectives of this article are: fi rst, to present the evolution of collaborative demand planning approaches such as Collaborative Planning, Forecasting and Replenishment and Demand-Driven Value Networks to Demand Sensing, and second, to identify the benefi ts that Demand Sensing can generate for the Consumer Goods Organisations (CPG) industry. After synthesising the relative literature on the above collaborative approaches, three case studies are presented to identify the benefi ts of the Demand Sensing approach. The conclusions of the case studies, as well as the fi ndings of a survey on CPG organisations in the United Kingdom and the United States, are combined in order to design a framework that organises the benefi ts derived from Demand Sensing into various functional areas.

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“…3 Large-scale projects are specific initiatives of Supply Chain Collaboration. Notorious large-scale projects are efficient consumer response (McKinsey & Co. 1992), vendor managed inventory Fisher 1997, Disney andTowill 2003b), continuous replenishment (Andraski 1994), collaborative planning, forecasting and replenishment (VICS 1998, Holmström et al 2002, centralised inventory management (Lee et al 1997). (Lee and Whang 2003), in order to capture the different dimensions of collaboration 4 and to clarify its ontological nature.…”

Section: Supply Chain Collaborationmentioning

confidence: 99%