| Author: | Baganha, M. Cohen, M. |
| Title: | The stabilizing effect of inventory in supply chains |
| Journal: | Operations Research
1998 : MAY-JUN, VOL. 46:3, p. S72-S83 |
| Index terms: | OPERATIONAL RESEARCH INVENTORIES STABILIZATION |
| Language: | eng |
| Abstract: | This paper presents a hierarchical model framework for the analysis of the stabilizing effect of inventories in multiechelon manufacturing/distribution supply chains. this framework is used to compare the variance of demand to the variance of replenishment orders at different echelons of the system (e.g., retailer, wholesaler). Empirical data and experience with management games suggest that, in most industries, inventory management policies can have a destabilizing effect by increasing the volatility of demand as it passes up stabilization. |
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