Shortage gaming and supply chain performance

Cherian Samuel and Biswajit Mahanty

International Journal of Manufacturing Technology and Management, 2003, vol. 5, issue 5/6, 536-548

Abstract: Supply chain management is an expanding field, both in research and in practice. Performance in supply chains is adversely affected by the bullwhip phenomenon. We have considered a decentralised supply chain subject to delays with no reliable past sales data, as in the case of a new product and modelled the supply chain using system dynamics. The impact of shortage gaming on whiplash effect is evident from the first model. When no reliable past data is available, sharing of demand forecasts may not be credible, as seen in the second model. The third model depicts a case where the shared information is credible as in the case of a customised product. This system shows a better performance.

Keywords: forecast sharing; shortage gaming; system dynamics; supply chain management; supply chain performance; bullwhip effect; information sharing. (search for similar items in EconPapers)
Date: 2003
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