search query: @author Zhao, X. / total: 11
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| Author: | Zhao, X. Xie, J. Wei, J. C. |
| Title: | The Impact of Forecast Errors on Early Order Commitment in a Supply Chain |
| Journal: | Decision Sciences Journal
2002 : SPRING, VOL. 33:2, p. 251-280 |
| Index terms: | FORECASTING MANAGEMENT SIMULATION SUPPLY CHAIN MANAGEMENT |
| Language: | eng |
| Abstract: | Supply chain partnership involves mutual commitments among participating firms. One example is early order commitment, wherein a retailer commits to purchase a fixed-order quantity and delivery time from a supplier before the real need takes place. This paper explores the value of practicing early order commitment in the supply chain. The authors investigate the complex interactions between early order commitment and forecast errors by simulating a supply chain with one capacitated supplier and multiple retailers under demand uncertainty. The authors found that practicing early order commitment can generate significant savings in the supply chain, but the benefits are only valid within a range of order commit ment periods. |
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