Article ID: | iaor20051655 |
Country: | Netherlands |
Volume: | 33 |
Issue: | 3 |
Start Page Number: | 289 |
End Page Number: | 294 |
Publication Date: | May 2005 |
Journal: | Operations Research Letters |
Authors: | Zhang Xiaolong |
Keywords: | forecasting: applications |
This paper considers an inventory setting in which the historical data used for demand forecasting are delayed. When the replenishment is controlled via an order-up-to policy, we show that such delays reduce the variability of the order history and dampen the bullwhip effect. We discuss the intuition behind this result.