Ordering and inventory reallocation decisions in a shared inventory platform with demand information sharing

Xu, Qi; Sun, Zhongmiao; Gao, Xiaoqing

doi:10.1007/s10479-020-03803-5

Cited by 4 publications

(3 citation statements)

References 35 publications

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“…Paul and Chowdhury (2020) stated that collaborating and sharing resources among manufacturers increases the service level. However, when this mechanism is based on individual profit and loss, supply chain partners can share fake information (Xu et al, 2020). Therefore, this strategy cannot be implemented in the absence of a high level of trust.…”

Section: Discussion and Managerial Insightsmentioning

confidence: 99%

Design of resilient and viable sourcing strategies in intertwined circular supply networks

Echefaj,

Charkaoui,

Cherrafi

et al. 2024

Ann Oper Res

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This study examines the effects of intertwining and circularity on the design of resilient and viable sourcing and recovery strategies in supply chains. We first construct a case study where the supply chains of three industries (i.e., automotive, healthcare, and electronics) frame an intertwined supply network (ISN). Through a discrete-event simulation model developed in anyLogistix, we examine the impact of disruptions in supply and demand on the performance of individual supply chains and the ISN as a whole. We test the performance of several sourcing strategies and their combinations. A special focus is directed toward shared reverse flows. The results show that disruption impact and recovery processes in the Circular ISN do not always follow conventional patterns known from the resilience of individual supply chains due to intertwining and circularity effects. We offer some managerial recommendations for the design of resilient sourcing strategies in the ISN context that are triangulated around collaborative sourcing practices, coordinated production planning, shared reverse flows, and visibility in inventory management.

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Section: Discussion and Managerial Insightsmentioning

confidence: 99%

Design of resilient and viable sourcing strategies in intertwined circular supply networks

Echefaj,

Charkaoui,

Cherrafi

et al. 2024

Ann Oper Res

View full text Add to dashboard Cite

show abstract

“…Karabuk and Wu (2005) study the capacity allocation problem within a firm and explore bonus payments schemes that align incentives. More recently, Xu et al (2020) investigate the optimal ordering and inventory reallocation decisions of a platform based on retailer demand information sharing, and propose a punishment mechanism to encourage truthful sharing. We focus instead on the potential of allocation mechanisms as a tool to align incentives and encourage retailers to report their true demands.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, because the central planner does not have access to local demand information, they must rely on retail orders to inform his allocation decision (see also Özen et al 2008). This implies the possibility that retailers may receive either less or more than they ordered, depending on the total quantity of order requests relative to available inventory (as in Xu et al 2020), and hence, may have an incentive to either inflate or deflate their needs. Compared with interactions across firms, the possibility of retailers receiving more than they requested may seem somewhat surprising.…”

Section: Introductionmentioning

confidence: 99%

Ordering Behavior and the Impact of Allocation Mechanisms in an Integrated Distribution System

Spiliotopoulou

Donohue

Gürbüz

2022

Production and Operations Management

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W e study the impact of three well-known inventory allocation mechanisms, including proportional, linear, and uniform, on the ordering behavior of retailers serviced from a central distribution center. Based on the allocation mechanism, retailers may have an incentive to adjust (either inflate or deflate) their orders to gain a more favorable allocation, a behavior that may reduce allocation efficiency from a system perspective. We find that while all three mechanisms are centrally optimal under common knowledge of local demands, only the uniform allocation incentivizes retailers to set orders truthfully. Consistent with theory, our experimental results show that using proportional or linear allocation results in larger and more frequent order adjustments, with the degree of strategic ordering being largest under the linear mechanism. Across all mechanisms, order adjustments decrease both allocation efficiency and local retail profits. While uniform allocation results in smaller and less frequent adjustments overall, it may not be feasible to implement in more general settings. Hence, we propose and test a new mechanism, tailored uniform, that leverages the uniform principle while overcoming some practical limitations. It provides more flexibility by allowing for differences in the allocated quantities among retailers, while still providing no incentive for order manipulation. The tailored uniform mechanism performs similarly to uniform in terms of order adjustments, and further increases allocation efficiency when retailers have heterogeneous demands.

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B2C car-sharing services: Sharing mode selection and value-added service investment

Guo

Fan

Sun

2022

Transportation Research Part E: Logistics and Transportation Re

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Ordering and inventory reallocation decisions in a shared inventory platform with demand information sharing

Cited by 4 publications

References 35 publications

Design of resilient and viable sourcing strategies in intertwined circular supply networks

Design of resilient and viable sourcing strategies in intertwined circular supply networks

Ordering Behavior and the Impact of Allocation Mechanisms in an Integrated Distribution System

B2C car-sharing services: Sharing mode selection and value-added service investment

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