scholarly journals Analysis of the Impact of Different Forecasting Techniques on the Inventory Bullwhip Effect in Two Parallel Supply Chains with a Competition Effect

2020 ◽  
Vol 2020 ◽  
pp. 1-28
Author(s):  
Xigang Yuan ◽  
Xiaoqing Zhang ◽  
Dalin Zhang
Keyword(s):  
Supply Chains ◽  
Market Share ◽  
Bullwhip Effect ◽  
Sensitivity Coefficient ◽  
The Self ◽  
Price Sensitivity ◽  
Market Demand ◽  
Competition Effect ◽  
The Impact ◽  
Forecasting Techniques

This paper studies the impact of different forecasting techniques on the inventory bullwhip effect in two parallel supply chains with the competition effect, which is in contrast to the situation of a single product in a serial supply chain. In particular, this paper constructs two parallel supply chains, each of which includes one manufacturer and one retailer. Moreover, the market demand is impacted by the self-price sensitivity coefficient, the cross-price sensitivity coefficient, the market share, and the demand shock. We then assumed that the retailer can forecast market demand by using different forecasting techniques (i.e., the moving average technique (MA), the exponential smoothing technique (ES), and the minimum mean square error technique (MMSE)). We constructed the quantity model of the bullwhip effect and the inventory bullwhip effect. Finally, we analyzed the impact of different forecasting techniques and market share on the inventory bullwhip effect. We analyzed the conditions under which the retailers should choose different types of forecasting techniques on the basis of the inventory bullwhip effect. The results show that the MMSE forecasting technique can reduce the lead-time demand forecast error to the largest extent, and the inventory bullwhip effect can obtain the lowest level using the MMSE method: retailer-1 can reduce the inventory bullwhip effect by using the MA technique, when the self-price sensitivity coefficient, the price autoregressive coefficient, and the probabilities associated with customers choosing retailer-1’s product are very low.

scholarly journals The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition Effect

2022 ◽  
Vol 2022 ◽  
pp. 1-21
Author(s):  
Xingji Chen ◽  
Jing Zeng ◽  
Xigang Yuan
Keyword(s):  
Supply Chain ◽  
Market Share ◽  
Cash Flow ◽  
Demand Function ◽  
Bullwhip Effect ◽  
Sensitivity Coefficient ◽  
Competition Effect ◽  
Forecasting Accuracy ◽  
Relationship Of ◽  
The Impact

While considering the competition effect and market share, this study discusses how the cash flow bullwhip effect (CFBE) is impacted in two-product and two-parallel supply chain systems by comparing the situation that it has one kind of product in two-level supply chain (SC). Specifically, the study aimed to examine two-product and two-parallel SC systems that include two suppliers and two retailers. Assuming that the demand function is a linear relationship of price self-sensitivity coefficient and price cross-sensitivity coefficient, which is an AR(1) process, two retailers share the demand. After that, the quantitative equation of the CFBE was deduced from two-product and two-parallel SC systems. Finally, we get the condition that the competition effect and the market share increase or decrease the CFBE, which was in contrast to the situation without the competition effect and the market share. The paper suggested that the manager can cooperate with their partner if two products are substitutable. On the other hand, the firm should improve the forecasting accuracy of the customer’s demand and improve the service quality so that it can increase the market share and reduce the CFBE in two-parallel SC systems.

Investigating the impact of inventory inaccuracy on the bullwhip effect in RFID-enabled supply chains using colored petri nets

2019 ◽  
Vol 14 (2) ◽  
pp. 360-384 ◽  
Author(s):  
Maria Drakaki ◽  
Panagiotis Tzionas
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Petri Nets ◽  
Information Sharing ◽  
Bullwhip Effect ◽  
Colored Petri Nets ◽  
Content Type ◽  
Multi Stage ◽  
The Impact ◽  
Serial Supply Chains

PurposeInformation distortion results in demand variance amplification in upstream supply chain members, known as the bullwhip effect, and inventory inaccuracy in the inventory records. As inventory inaccuracy contributes to the bullwhip effect, the purpose of this paper is to investigate the impact of inventory inaccuracy on the bullwhip effect in radio-frequency identification (RFID)-enabled supply chains and, in this context, to evaluate supply chain performance because of the RFID technology.Design/methodology/approachA simulation modeling method based on hierarchical timed colored petri nets is presented to model inventory management in multi-stage serial supply chains subject to inventory inaccuracy for various traditional and information sharing configurations in the presence and absence of RFID. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results.FindingsThe bullwhip effect is increased in RFID-enabled multi-stage serial supply chains subject to inventory inaccuracy. The information sharing supply chain is more sensitive to the impact of inventory inaccuracy.Research limitations/implicationsInformation sharing involves collaboration in market demand and inventory inaccuracy, whereas RFID is implemented by all echelons. To obtain the full benefits of RFID adoption and collaboration, different collaboration strategies should be investigated.Originality/valueColored petri nets simulation modeling of the inventory management process is a novel approach to study supply chain dynamics. In the context of inventory errors, information on RFID impact on the dynamic behavior of multi-stage serial supply chains is provided.

scholarly journals Estimating the price range and the effect of price bundling strategies

2019 ◽  
Vol 29 (2) ◽  
pp. 166-181 ◽  
Author(s):  
Sérgio Dominique-Ferreira ◽  
Cristina Antunes
Keyword(s):  
Market Share ◽  
Design Methodology ◽  
Price Sensitivity ◽  
Content Type ◽  
Price Range ◽  
Price Bundling ◽  
Hotel Managers ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to investigate and identify the price sensitivity of consumers of three- and five-star hotels and to determine the impact of bundling strategies on consumers’ price sensitivity. Design/methodology/approach To calculate price sensitivity, authors apply the van Westendorp’s price sensitivity meter (PSM). To understand the impact of bundling strategies, univariate and bivariate techniques are applied. Findings PSM results reveal the optimal prices and the range of acceptable prices for three- and five-star hotel. The bundling strategy results reveal that five-star customers are less sensitive to mixed-leader bundling. Regarding mixed-joint bundling, managers could improve sales through bundling strategies if they selected an attractive service (e.g. restaurants). Practical implications Findings assist hotel managers to understand the different price sensitivities, according to the hotel typology. Managers can manage prices without the risk of losing market share or revenue. The results help managers in deciding which bundling strategies they can create, as well as the services to be included to achieve highest profitability. Originality/value No research to date to the best of the authors’ knowledge has attempted to understand and compare the role of bundling strategies in three- and five-stars hotels. Moreover, no research has attempted to measure and compare customers’ price sensitivity of three- and five-stars hotels.

scholarly journals Supply Chain Decision-Making and Coordination considering Anticipated Regret under Price Discount

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Jie Jian ◽  
Huipeng Li ◽  
Nian Zhang ◽  
Jiafu Su
Keyword(s):  
Supply Chain ◽  
Sensitivity Coefficient ◽  
Pricing Strategy ◽  
Market Demand ◽  
Anticipated Regret ◽  
Consumer Heterogeneity ◽  
Price Discount ◽  
Demand Functions ◽  
Homogeneous Product ◽  
The Impact

The increasing homogeneous product market has made more competition among companies to focus on improving customers’ experience. In order to get more competitive advantages, companies often launch discount products to attract consumers. However, stimulated by discount products, the perception of anticipated regret is becoming stronger, which is an inevitable issue in front of companies with price discount strategy. Considering the impact of anticipated regret for discount products, this paper quantitatively describes the utility functions and deduces the demand functions of original price products and discount products. The theoretical analysis and numerical simulation are used to analyze centralized and decentralized models of supply chain for discount products. On its basis, the revenue-sharing contract is designed to optimize the profits of supply chain. This paper finds that the price of products increases first and then decreases with the increase of regret sensitivity coefficient and consumer heterogeneity. When the regret sensitivity coefficient and consumer heterogeneity are lower, companies in the supply chain can adopt the “skimming pricing” strategy in order to obtain more profits. When the regret sensitivity coefficient and consumer heterogeneity increase, companies in the supply chain can adopt “penetrating pricing” strategies to stimulate market demand. For high regret consumers, manufacturers can adopt a “commitment advertising” strategy to promise price and quality, and retailers can adopt a “prestige pricing” strategy to reduce consumer perception of regret. In response to products with higher differences in consumer acceptance, manufacturers can adopt a “differentiated customization” strategy to meet different types of consumer demand and retailers can adopt a “differential pricing” strategy for precise marketing.

scholarly journals Social networks and the situation of blood donation in Poland: a logistics perspective / Sieci społeczne a sytuacja krwiodawstwa w Polsce w perspektywie logistycznej

Management ◽  
2013 ◽  
Vol 17 (1) ◽  
pp. 153-169
Author(s):  
Jacek Szołtysek ◽  
Sebastian Twaróg ◽  
Martyna Wronka
Keyword(s):  
Social Networks ◽  
Supply Chains ◽  
Blood Supply ◽  
Blood Donors ◽  
Blood Donation ◽  
Bullwhip Effect ◽  
Secondary Role ◽  
The Impact ◽  
The Relationship ◽  
Size And Structure

Summary This article aims to present the impact of social networks on the formation on the flow of blood and its components in the civilian blood donation system in Poland. The civilian blood donation system in Poland consists of 21 independently-functioning supply chains of blood and its components (Szołtysek, Twaróg 2009, p. 15). Today, logistics plays a secondary role in the management of blood supply chains, and the integration of flow is performed randomly and intuitively. The rapidly growing recognition of social logistics (T. Takahasi 1988, pp. 245 - 251; Tenhunen 2008, pp. 515-534; Szołtysek 2010, pp. 2-6; Szołtysek 2011, pp.13-18) provides tools to improve the efficiency of the blood donation system in terms of both the existing blood supply chains, and the potential offered by network structures. An unexpected change in demand for blood and its components probably induces a bullwhip effect, and the organizations that form the chains have to deal with supplies unreasonable in terms of their size and structure. A major role in this process is played by social networks, as a source of general mobilization among potential blood donors. Finding a way to change the relationship between social networks and the system of blood donation may minimize the disruptions occurring in the flow of blood and its components in Poland.

The industrial recovery will be uneven and China-led

2020 ◽  
Keyword(s):  
Supply Chains ◽  
Regional Differences ◽  
Global Supply Chains ◽  
Dislocated Workers ◽  
Market Demand ◽  
Geographic Variations ◽  
Content Type ◽  
Manufacturing Employment ◽  
Manufacturing Performance ◽  
The Impact

Significance While manufacturing is recovering after its sharp contraction during the first wave of shutdowns, the recovery is uneven by sector and region, reflecting the impact of COVID-19 on the structure of market demand, manufacturing capacity and global supply chains. Impacts The major industrial economies bar China have become more dependent on manufactured imports during 2020; this will ease gradually. Production is recovering but manufacturing employment is not, and this will continue; policies to support dislocated workers will be key. Geographic variations in the incidence of COVID-19 will accentuate the sectoral and regional differences in manufacturing performance.

scholarly journals Optimization of competitive supply chains with retailers’ horizontal cooperation and consumers’ green preference

2021 ◽  
Author(s):  
Wenfang Shang ◽  
Liangliang Teng ◽  
Jian-bo Yang
Keyword(s):  
Supply Chains ◽  
Positive Impact ◽  
Green Manufacturing ◽  
Market Demand ◽  
Green Products ◽  
Negative Effects ◽  
Horizontal Cooperation ◽  
Supply Chain Competition ◽  
Gradual Process ◽  
The Impact

AbstractWith the wider recognition of the concept of environmental protection and sustainable development, more and more manufacturers have begun to implement green manufacturing strategies. However, green development is a gradual process, and the coexistence of ordinary and green products is common. This paper examines the competition between ordinary products and green ones based on supply chains, and discusses the impact of retailers’ horizontal cooperation on pricing, greenness, market demand, profit, and other related decisions and results. Model solutions and numerical experiments have shown that consumers’ green preference (CGP) has a positive impact on the results of green products and negative effects on those of ordinary ones; however, the impact of competition intensity (CI) is more complex, and the trend tends to change if it exceeds a certain critical value. In general, cooperation encourages retailers to raise prices and make manufacturers lower wholesale prices, but the retail and wholesale prices of green products are always higher than the corresponding prices of ordinary ones. Market demand can be reduced due to cooperation, but it is conducive to strengthening green products’ greenness. However, if CI exceeds a certain threshold, the greenness will be weakened by cooperation. Both retailers can benefit from cooperation easily and they always reach a win-win situation, but manufacturers suffer badly as a result. Nevertheless, when CI is weak, cooperation will bring a greater profit improvement to the whole chain of ordinary products; in this case, if a retailer is willing to compensate for a manufacturer’s profit loss and help it benefit from cooperation, the manufacturer will encourage the retailer to cooperate horizontally with the green retailer, but the green chain will be seriously damaged. When CI is strong, the greenness of green products is not obvious enough, and cooperation can bring some chances to achieve a win-win situation for two chains; if the green retailer can obtain a larger share from cooperation under this scenario, it can also enable its manufacturer to obtain compensation and change the profit increment from negative to positive. From an overall perspective, when CI is very weak or very strong, horizontal cooperation is conducive to improving the profit of the entire supply chain competition system, but when CI is relatively flat, independent operation for each chain is more advantageous; if the competition status is stable and unchanged, independent competition will be superior to horizontal cooperation.

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