Browse > Article
http://dx.doi.org/10.13088/jiis.2013.19.2.021

Supply Contract Intelligence : The Impact of Stockout and Overstock Experiences Using System Dynamics Simulation Model  

Noh, Yonghwi (School of Business Administration, Myongji University)
Choi, Donghyun (Department of Management, Kansas State University)
Rha, Jin Sung (Department of Management, University of Nebraska-Lincoln)
Suh, Yongkee (Logisall Corporation)
Publication Information
Journal of Intelligence and Information Systems / v.19, no.2, 2013 , pp. 21-38 More about this Journal
Abstract
The purpose of this study is to investigate the influence of behavioral factors (buyer's tendency to reflect stockout and overstock experiences in ordering decision) on the supply chain performance. This study employs system dynamics to examine the influence of these behavioral factors derived from the interview with several representatives of retailers in South Korea. The results show that different contract can bring different performance (total profit, seller's profit, buyer's profit, order quantity, sales quantity, overstock, and stockout). The results also suggest that these behavioral factors play a significantly influential role in the performance of supply contract. These results imply that supply contract should be established based on the analysis of behavioral factors of supply chain participants.
Keywords
공급계약;재고부족;재고초과;바이백;수익공유;시뮬레이션;시스템 다이나믹스;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
연도 인용수 순위
1 Tsay, A. A., S. Nahmias, and N. Agrawal, Modeling Supply Chain Contracts : A Review. Quantitative Model for Supply Chain Management, Kluwer, Boston, MA, 1998.
2 Lee, H., V. Padmanabhan, and W. Seungjin, "Information Distortion in a Supply Chain : The Bullwhip Effect," Management Science, Vol.50, No.12(2004), 1875-1886.   DOI
3 Lee, H., V. Padmanabhan, and S. Wang, "The Bullwhip Effect in Supply Chains," MIT Sloan Management Review, Vol.38, No.3(1997), 93-102.
4 Mass, N., Stock and Flo Variables and the Dynamics of Supply and Demand, in Randers, J (ed.), Elements of the System Dynamics Method. Waltham, Pegasus Communications, MA, 1980.
5 Mortimer, J. H., "The effects of revenue-sharing contracts on welfare in vertically separated markets : Evidence from the video rental industry," Review of Economic Studies, Vol.75, No.1(2008), 165-199.   DOI   ScienceOn
6 Narayanan, V. G. and A. Raman, "Aligning Incentives in Supply Chains," Harvard Business Review, Vol.82, No.11(2004), 94-102.
7 Nellore, R. and J. Motwani, "Procurement Commodity Structures : Issues, Lessons and Contributions," European Journal of Purchasing and Supply Management, Vol.5(1999), 157-166.   DOI   ScienceOn
8 Simon, H. A., "Bounded rationality and organizational learning," Organization science, Vol.2, No.1(1991), 125-134.   DOI   ScienceOn
9 Scott, W. R., Organizations : Rational, Natural, and Open Systems, 2nd Edition. Prentice-Hall International Edition, Englewood Cliffs, NJ, 1987.
10 Sterman, J. D., Business Dynamics : Systems Thinking and Modeling for a Complex World, Irwin-McGraw-Hill : Chicago, IL, 2000.
11 Suh, W., D. Lee, and K. Lim, "A Study on the Performance Evaluation of G2B Procurement Process Innovation by Using MAS : Korea G2B KONEPS Case," Journal of Intelligence and Information Systems, Vol.18, No.2(2012), 157-175.
12 Taylor, T., "Supply Chain Coordination under Channel Rebates with Sales Effort Effects," Management Science, Vol.48, No.8(2002), 992-1007.   DOI   ScienceOn
13 Tsay, A. A., "The Quantity Flexibility Contract and Supplier-Customer Incentives," Management Science, Vol.45, No.10(1999), 1339-1358.   DOI   ScienceOn
14 Farrell, J. and C. Shapiro, "Optimal Contracts with Lock-In," The American Economic Review, Vol.79, No.1(1989), 51-68.
15 Bassok, Y. and R. Anupindi, "Analysis of Supply Contracts with Total Minimum Commitment," IIE Transactions, Vol.29, No.5(1997), 373-381.
16 Cachon, G. P. and M. A. Lariviere, "Supply Chain Coordination with Revenue-Sharing Contracts : Strengths and Limitations," Management Science, Vol.51, No.1(2005), 30-44.   DOI   ScienceOn
17 Dejonckheere, J., S. Disney, M. Lambrecht, and D. Towill, "Measuring and avoiding the bullwhip effect : A control theoretic approach," European Journal of Operational Research, Vol.147, No.3(2003), 567-590.   DOI   ScienceOn
18 Fisher, M., J. Hammond, W. Obermeyer, and A. Raman, "Configuring a supply chain to reduce the cost of demand uncertainty," Production and Operations Management, Vol.6, No.3 (1997), 211-225.
19 Granot, D. and S. Yin, "On the Effectiveness of Returns Policies in the Price-Dependent Newsvendor Model," Naval Research Logistics, Vol.52, No.8(2005), 765-779.   DOI   ScienceOn
20 Grssler, A., J. Thun, and P. Milling, "System Dynamics as a Structural Theory in Operations Management," Production and Operations Management, Vol.17, No.3(2008), 373-384.   DOI
21 Hendricks, K. and V. Singhal, "An Empirical Analysis of the Effect of Supply Chain Disruptions on Long-Run Stock Price Performance and Equity Risk of the Firm," Production and Operations Management, Vol.14, No.1(2005), 35-52.
22 Kandel, E., "The Right to Return," Journal of Law and Economics, Vol.39, No.1(1996), 329-356.   DOI   ScienceOn
23 Kilgore, M., Mitigating supply chain risks. White paper, Chainalytics LLC, Atlanta, Georgia, 2003.
24 Pasternack, B., "Optimal Pricing and Return Policies for Perishable Commodities," Marketing Science, Vol.2(1985), 166-176.
25 Kim, H., I. Son, and D. Lee, "The Viral Effect of Online Social Network on New Products Promotion : Investigating Information Diffusion on Twitter," Journal of Intelligence and Information Systems, Vol.18, No.2(2012), 107-130.
26 Cachon, G. P., "The Allocation of Inventory Risk in a Supply Chain : Push, Pull, and Advance-Purchase Discount Contracts," Management Science, Vol.50, No.2(2004), 222-238.   DOI   ScienceOn
27 Forrester, J. W., Industrial Dynamics, Cambridge : MIT Press, MA, 1961.
28 Goncalves, P., J. Hines, and J. Sterman, "The Impact of Endogenous Demand on Push-Pull Production Systems," System Dynamics Review, Vol.21, No.3(2005), 187-216.   DOI   ScienceOn
29 Lee, J., I. Son, and D. Lee, "Does Online Social Network Contribute to WOM Effect on Product Sales?," Journal of Intelligence and Information Systems, Vol.18, No.2(2012), 85-105.