Weakening Demand Misinformation in Supply Chain
Supply chain members work diligently to match supply with demand, but their efforts will be misdirected if the demand is misrepresented due to bogus orders. Demand information is the infrastructure upon which supply chain planning is built. Accurate demand information gives companies a suitable foundation for their actions. Since suppliers and manufacturers rely on order quantities to estimate their demand, spurious orders falsely misallocate their resources triggering an expensive ripple effect of inequity in a supply chain. We hope that our research activates scholarly work promoting practices of accurate demand representation to allow equal opportunities to gain efficiency across a chain. To weaken demand misinformation, we proposed to penalize inaccurate orders to protect the upstream members of a chain. This is done by developing three dynamic pricing models, analyzing various performance measures, and finding the superior model, which ensures inaccurate orders are diminished
Year of publication: |
[2023]
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Authors: | Fortsch, Sima ; Chuang, Chia-Hung |
Publisher: |
[S.l.] : SSRN |
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freely available
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