Journal of Intelligence and Information Systems (지능정보연구)

Korea Intelligent Information System Society (한국지능정보시스템학회)
권호 표지
DOI QR코드

DOI QR Code

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

공급사슬지능 : 시스템 다이나믹스를 이용한 재고 과부족 경험이 공급사슬에 미치는 영향 분석

  • Received : 2013.05.08
  • Accepted : 2013.06.10
  • Published : 2013.06.30
Download PDF
⟨ Previous Next ⟩

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.

본 연구는 재고 과부족 경험을 주문에 반영하고자 하는 구매자의 행동적 경향이 공급사슬의 성과에 미치는 영향에 대해 고찰하였다. 이를 위해 한국의 대표적인 소매점 몇 곳의 경영자와의 인터뷰 결과를 토대로 시스템 다이나믹스 시뮬레이션 기법을 사용하여 분석을 수행하였다. 공급사슬 전체 이익, 판매자 이익, 구매자 이익, 주문량, 판매량, 재고초과, 재고부족 등 다양한 공급사슬 성과 변수에 대한 분석 결과 서로 다른 공급 계약은 서로 다른 공급사슬의 성과를 가져왔다. 또한, 구매자의 행동적 요소는 공급계약의 성과에 중요한 영향을 미치고 있었다. 본 연구의 결과를 토대로 공급계약은 공급사슬 참여자들의 행동적 특성을 충분히 반영하여 수립되어야 함을 알 수 있다.

Keywords

References

  1. Bassok, Y. and R. Anupindi, "Analysis of Supply Contracts with Total Minimum Commitment," IIE Transactions, Vol.29, No.5(1997), 373-381.
  2. 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. https://doi.org/10.1287/mnsc.1030.0190
  3. 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. https://doi.org/10.1287/mnsc.1040.0215
  4. 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. https://doi.org/10.1016/S0377-2217(02)00369-7
  5. Farrell, J. and C. Shapiro, "Optimal Contracts with Lock-In," The American Economic Review, Vol.79, No.1(1989), 51-68.
  6. 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.
  7. Forrester, J. W., Industrial Dynamics, Cambridge : MIT Press, MA, 1961.
  8. 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. https://doi.org/10.1002/nav.20114
  9. 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. https://doi.org/10.3401/poms.1080.0023
  10. 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. https://doi.org/10.1002/sdr.318
  11. 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.
  12. Kandel, E., "The Right to Return," Journal of Law and Economics, Vol.39, No.1(1996), 329-356. https://doi.org/10.1086/467351
  13. Kilgore, M., Mitigating supply chain risks. White paper, Chainalytics LLC, Atlanta, Georgia, 2003.
  14. 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.
  15. 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. https://doi.org/10.1287/mnsc.1040.0266
  16. Lee, H., V. Padmanabhan, and S. Wang, "The Bullwhip Effect in Supply Chains," MIT Sloan Management Review, Vol.38, No.3(1997), 93-102.
  17. 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.
  18. 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.
  19. 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. https://doi.org/10.1111/j.1467-937X.2007.00462.x
  20. Narayanan, V. G. and A. Raman, "Aligning Incentives in Supply Chains," Harvard Business Review, Vol.82, No.11(2004), 94-102.
  21. Nellore, R. and J. Motwani, "Procurement Commodity Structures : Issues, Lessons and Contributions," European Journal of Purchasing and Supply Management, Vol.5(1999), 157-166. https://doi.org/10.1016/S0969-7012(99)00022-2
  22. Pasternack, B., "Optimal Pricing and Return Policies for Perishable Commodities," Marketing Science, Vol.2(1985), 166-176.
  23. Simon, H. A., "Bounded rationality and organizational learning," Organization science, Vol.2, No.1(1991), 125-134. https://doi.org/10.1287/orsc.2.1.125
  24. Scott, W. R., Organizations : Rational, Natural, and Open Systems, 2nd Edition. Prentice-Hall International Edition, Englewood Cliffs, NJ, 1987.
  25. Sterman, J. D., Business Dynamics : Systems Thinking and Modeling for a Complex World, Irwin-McGraw-Hill : Chicago, IL, 2000.
  26. 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.
  27. Taylor, T., "Supply Chain Coordination under Channel Rebates with Sales Effort Effects," Management Science, Vol.48, No.8(2002), 992-1007. https://doi.org/10.1287/mnsc.48.8.992.168
  28. Tsay, A. A., "The Quantity Flexibility Contract and Supplier-Customer Incentives," Management Science, Vol.45, No.10(1999), 1339-1358. https://doi.org/10.1287/mnsc.45.10.1339
  29. Tsay, A. A., S. Nahmias, and N. Agrawal, Modeling Supply Chain Contracts : A Review. Quantitative Model for Supply Chain Management, Kluwer, Boston, MA, 1998.

Cited by

  1. System dynamics simulation‐based model for coordination of a three‐level spare parts supply chain vol.26, pp.6, 2013, https://doi.org/10.1111/itor.12664