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Impact of Information Exchange on Supplier Forecasting Performance

Trapero Arenas, J R and Kourentzes, N and Fildes, R A (2010) Impact of Information Exchange on Supplier Forecasting Performance. Working Paper. The Department of Management Science, Lancaster University.

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    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 decentralised system where each member feeds its own Forecasting Support System (FSS) with incoming orders from direct customers. Nevertheless, other collaboration schemes are also possible, for instance, the Information Exchange framework allows demand information to be shared between the supplier and the retailer. Current theoretical models have shown the limited circumstances where retailer information is valuable to the supplier. However, there has been very little empirical work carried out. This works assesses the role of sharing market sales information obtained by the retailer on the supplier forecasting accuracy. Data have been collected from a manufacturer of domestic cleaning products and a major UK grocery retailer to show the circumstances where information sharing leads to improved accuracy. We find significant evidence of benefits through information sharing.

    Item Type: Monograph (Working Paper)
    Uncontrolled Keywords: Bullwhip effect ; Supply chain ; Supply chain collaboration ; Bullwhip ratio ; Neural Networks
    Subjects: H Social Sciences > HB Economic Theory
    Departments: Lancaster University Management School > Management Science
    ID Code: 49026
    Deposited By: ep_importer_pure
    Deposited On: 11 Jul 2011 22:30
    Refereed?: No
    Published?: Published
    Last Modified: 17 Jan 2018 00:07
    Identification Number:

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