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Analysis of the Impact of Different Forecasting Techniques on the Inventory Bullwhip Effect in Two Parallel Supply Chains with a Competition Effect
Joint Authors
Zhang, Xiao qing
Yuan, Xigang
Zhang, Da-lin
Source
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-28, 28 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-09-11
Country of Publication
Egypt
No. of Pages
28
Main Subjects
Abstract EN
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.
American Psychological Association (APA)
Yuan, Xigang& Zhang, Xiao qing& Zhang, Da-lin. 2020. Analysis of the Impact of Different Forecasting Techniques on the Inventory Bullwhip Effect in Two Parallel Supply Chains with a Competition Effect. Journal of Engineering،Vol. 2020, no. 2020, pp.1-28.
https://search.emarefa.net/detail/BIM-1183664
Modern Language Association (MLA)
Yuan, Xigang…[et al.]. Analysis of the Impact of Different Forecasting Techniques on the Inventory Bullwhip Effect in Two Parallel Supply Chains with a Competition Effect. Journal of Engineering No. 2020 (2020), pp.1-28.
https://search.emarefa.net/detail/BIM-1183664
American Medical Association (AMA)
Yuan, Xigang& Zhang, Xiao qing& Zhang, Da-lin. Analysis of the Impact of Different Forecasting Techniques on the Inventory Bullwhip Effect in Two Parallel Supply Chains with a Competition Effect. Journal of Engineering. 2020. Vol. 2020, no. 2020, pp.1-28.
https://search.emarefa.net/detail/BIM-1183664
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1183664