Delayed demand information and dampened bullwhip effect

Delayed demand information and dampened bullwhip effect

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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:
Keywords: forecasting: applications
Abstract:

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.

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