Abstract
Inventory decisions and demand forecasts are at the heart of supply chain management. Effective integration of these two activities is key to organizational success. Despite this, literature haven’t extensively explored the interrelation between judgmental inputs into forecasts and inventory decisions. This paper draws insights by connecting these two vital activities, applying system dynamics theory at a multinational company dealing in the heavy industries sector. Empirical evidence suggests that despite the growth of various statistical and computational advancements in managing inventory and forecasts, practitioners still frequently adjust the final output. The literature outlines that some practitioners are privy to information that might not be exposed to the system/model which are likely to increase supply chain performance when used effectively. The outcome of this research aids in avoiding double-counting of contextual information and improving forecast accuracy, eventually leading to better supply chain performance.
Original language | English |
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Title of host publication | International Conference on Dynamics in Logistics : LDIC 2020: Dynamics in Logistics |
Number of pages | 11 |
Publisher | Springer |
Publication date | 2020 |
Pages | 516-526 |
ISBN (Print) | 978-3-030-44782-3 |
ISBN (Electronic) | 978-3-030-44783-0 |
DOIs | |
Publication status | Published - 2020 |
Event | International Conference on Dynamics in Logistics - Bremen, Germany Duration: 12 Feb 2020 → 14 Feb 2020 |
Conference
Conference | International Conference on Dynamics in Logistics |
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Country/Territory | Germany |
City | Bremen |
Period | 12/02/2020 → 14/02/2020 |
Series | Lecture Notes in Logistics |
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ISSN | 2194-8917 |
Bibliographical note
Publisher Copyright:© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2020.
Keywords
- Behavioral inventory decisions
- Behavioral supply chain management
- Case study
- Judgmental forecasting
- System Dynamics