An Empirical Comparison of Anticipatory and Response‐Based Supply Chain Strategies
The International Journal of Logistics Management
ISSN: 0957-4093
Article publication date: 1 July 1998
Abstract
This paper reports simulation research that empirically investigates and compares supply chain performance under varying conditions of information exchange and demand uncertainty. Specifically, the research objective is to quantitatively document the characteristics and performance impact of information exchange among supply chain entities. The findings suggest that the response‐based supply chain model consistently outperforms the anticipatory model in terms of customer service delivered under conditions of both low and high demand variation. Comparisons of inventory holdings across supply chain models demonstrate that the retailers' inventory burden is significantly lower in the response‐based scenario. The inventory savings enjoyed by retailers in the response‐based model are substantial enough to lower system‐wide inventories. In sum, the study supports the feasibility of achieving both improved service and lower inventories as a result of information sharing.
Keywords
Citation
Closs, D.J., Roath, A.S., Goldsby, T.J., Eckert, J.A. and Swartz, S.M. (1998), "An Empirical Comparison of Anticipatory and Response‐Based Supply Chain Strategies", The International Journal of Logistics Management, Vol. 9 No. 2, pp. 21-34. https://doi.org/10.1108/09574099810805816
Publisher
:MCB UP Ltd
Copyright © 1998, MCB UP Limited