Villa, Sebastian with Paulo Goncalves and Santiago Arango, "Retailer’s Order Decisions under Delays: System Dynamics and Experimental Results", 2011 July 24-2011 July 28

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When final customer demand exceeds available supply, retailers often hedge against shortages by inflating orders to their suppliers. As several retailers compete for scarce supply, the amplification in orders lead to excess supplier capacity, high inventory variability, low capacity utilization, and financial and reputation losses for suppliers and retailers. While the amplification in orders caused by the competition for scarce resources has been described in the literature almost a century ago (Mitchell 1924), there is little research quantifying the impact of such order amplification by retailers.

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  • 2011 July 24-2011 July 28
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