| Author: | Donselaar, K. van Kopczak, L. R. Wouters, M. |
| Title: | The use of advance demand information in a project-based supply chain |
| Journal: | European Journal of Operational Research
2001 : MAY 1, VOL. 130:3, p. 519-538 |
| Index terms: | SUPPLY CHAIN MANAGEMENT DEMAND PROJECTS |
| Language: | eng |
| Abstract: | This paper analyses the inventory reduction that could be achieved if the installer were to communicate advance demand information (ADI) to the manufacturer. This paper looks at it in particular when the bid is placed. It focused on the following characteristics of available ADI in project environments: First, ADI information is uncertain, because decisions on installer and manufacturer selection have not yet been finalized. Second, information is detailed, available at item level. This paper shows that ADI is particularly valuable when potential demand for large projects is irregular and when proposals for potential projects have a high probability of leading to orders. |
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