This paper documents that excess inventory announcements, an indication of demand-supply mismatch, are associated with an economically and statistically significant negative stock market reaction. The results are based on a sample of 276 excess inventory announcements made during 1990-2002. Over...

An important observation in supply chain management, known as the bullwhip effect, suggests that demand variability increases as one moves up a supply chain. In this paper we quantify this effect for simple, two-stage supply chains consisting of a single retailer and a single manufacturer. Our...

This paper presents a multistage supply chain model that is based on Autoregressive Integrated Moving Average (ARIMA) time-series models. Given an ARIMA model of consumer demand and the lead times at each stage, it is shown that the orders and inventories at each stage are also ARIMA, and...

Many theoretical models adopt a normative approach and assume that decision makers are perfect optimizers. In contrast, this paper takes a descriptive approach and considers bounded rationality, in the sense that decision makers are prone to errors and biases. Our decision model builds on the...

In a supply chain the variability of the orders received by the supplier can be greater than the demand variability. This phenomenon is named bullwhip effect. Some researchers are quantified the bullwhip by measuring the differences between observed variances in the different stages of the...

The present article refers to the bullwhip effect that negatively influences the supply chain performance. This effect is experienced by various industries, from fast moving consumer goods to IT products. The consequences for the supply chain members are the following: increased costs, lower...

In an upstream supply chain dedicated to the mass production of customized products, many sources create production instability: the level and structure of production in the final assembly line, variability of lead times, quality issues, packaging and loading constraints on transportation,...

The bullwhip effect that occurs in supply chain inventory can distort demand forecasts and lead to inefficiencies such as excessive inventory, stock-outs, and backorders. In this paper we theorize that inventory bullwhip also leads to cash-flow bullwhip (CFB). Specifically, this paper focuses on...

Forecasts of demand are crucial to drive supply chains and enterprise resource planning systems. Usually, well-known univariate methods that work automatically such as exponential smoothing are employed to accomplish such forecasts. The traditional Supply Chain relies on a decentralized system...

In an upstream supply chain dedicated to the mass production of customized products, many sources create production instability: the level and structure of production in the final assembly line, variability of lead times, quality issues, packaging and loading constraints on transportation,...