IDEAS home Printed from https://ideas.repec.org/a/ids/ijlsma/v32y2019i3-4p322-345.html
   My bibliography  Save this article

Replenishment behaviour in sequential supply chains

Author

Listed:
  • Amin Kaboli
  • Rémy Glardon
  • Nicolas Zufferey
  • Naoufel Cheikhrouhou

Abstract

Inventory managers do not predominantly follow normative optimisation models. At best, they introduce a level of bounded rationality in their inventory replenishment decisions. This paper examines the behaviour of inventory decision-makers under continuous review in a decentralised supply chain, using an experimental approach with unknown market demand and local information availability. The analysis reveals that not only the magnitude and the variability of order quantity tend to be larger, but also that the order-time intervals is lengthen and highly variable while moving upstream along the supply chain. The role of the inventory managers' replenishment decisions on the echelon holding, backorder, and total costs, is also investigated. Finally, a normative model is designed and its solutions are compared to the experimental results. It is observed that humans do not operate in a perfectly optimal way, but are generally reluctant to risk increasing backorder costs and reducing inventory carrying cost, even if this would lead to lower total cost.

Suggested Citation

  • Amin Kaboli & Rémy Glardon & Nicolas Zufferey & Naoufel Cheikhrouhou, 2019. "Replenishment behaviour in sequential supply chains," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 32(3/4), pages 322-345.
    • Handle: RePEc:ids:ijlsma:v:32:y:2019:i:3/4:p:322-345
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=98322
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijlsma:v:32:y:2019:i:3/4:p:322-345. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=134 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.