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Journal cover: International Journal of Logistics Management, The

International Journal of Logistics Management, The

ISSN: 0957-4093

Online from: 1990

Subject Area: Operations and Logistics Management

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An Empirical Comparison of Anticipatory and Response-Based Supply Chain Strategies

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Title:An Empirical Comparison of Anticipatory and Response-Based Supply Chain Strategies
Author(s):David J. Closs, (Michigan State University), Anthony S. Roath, (Michigan State University), Thomas J. Goldsby, (Iowa State University), James A. Eckert, (Northeastern University), Stephen M. Swartz, (Air Force Institute of Technology)
Citation:David J. Closs, Anthony S. Roath, Thomas J. Goldsby, James A. Eckert, Stephen M. Swartz, (1998) "An Empirical Comparison of Anticipatory and Response-Based Supply Chain Strategies", International Journal of Logistics Management, The, Vol. 9 Iss: 2, pp.21 - 34
Keywords:Channel relationships, Communications, Evaluation, Modelling, Simulation, Supply-chain management
Article type:Research paper
DOI:10.1108/09574099810805816 (Permanent URL)
Publisher:MCB UP Ltd
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.

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