Retailer’s Decision on a Demand-curve’s Shape with AR(1) Shocks and the Bullwhip Effect
This paper discusses impacts of retailers decision on the bullwhip effect for the different demand-curves with first-order autoregression process(AR(1)) shocks in a simple two-stage supply chain system consisting of a single retailer and a single supplier. First, combined decision (pricing and inventory decision) models are made for the retailer with demand-curves with random shocks. Then, impacts of decisions on the bullwhip effect are analyzed. The result shows that when the market demand is a linear curve with A R(1) shocks, the retailers optima l decision cannot ma ke the bullwhip e ffect occur and its measure has no concerns with its demand elasticity and s caling factor; however, when the market demand is an iso-elastic demand function with AR(1) shocks, the bullwhip effect measure will decrease with the increase of the demand elasticity and its scaling factor, but the bullwhip effect will always occur. Moreover, for the above two curves, the bullwhip effects change differently with autoregression coefficient of shocks. Therefore, retailers must consider the pattern of the demand curve and its fine structure to reduce the bullwhip effect.
supply chain pricing decision inventory decision Bullwhip Effect demand-curve
Wang Weijun Tang Xiaowo Ni Debin
Electronic Science and Technology University of China, Chengdu, P.R.China, 610056 College of Informa Electronic Science and Technology University of China, Chengdu, P.R.China, 610056
国际会议
4th International Conference on Productinnovation Management(第四届产品创新管理国际会议)
武汉
英文
1366-1373
2009-08-22（万方平台首次上网日期，不代表论文的发表时间）