A Study on Demand Information Distortion in Airline Industry Supply Chain

항공산업 공급체인의 수요정보 왜곡현상에 관한 연구

The supply chain of the airline industry includes multiple airline companies, travel agencies and customers. Various air fares are offered by travel agencies. The travel agencies grant deposit to the airline company in advance and preoccupy seats with deep discount, which called group-discount-ticket. The group-discount-ticket offers the lowest air fare but it does not base on real demand. So the information flow generated by group-discount-ticket can cause the information distortion in airline supply chain. This study analyzes the bullwhip effect in the airline industry. A mathematical model is formulated and managerial suggestions is provided.