Inventory sharing and demand-side underweighting

• Main Authors: ZHAO, Hui, XU, Liang, SIEMSEN, Enno
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: inventory sharing; behavioral operations; demand-side underweighting bias; structural estimation; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7083; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8082/viewcontent/Inventory_Sharing_and_Demand_Side_Underweighting_av.pdf
• Institution: Singapore Management University

Problem definition: Transshipment/inventory sharing has been used in practice because of its risk-pooling potential. However, human decision makers play a critical role in making inventory decisions in an inventory sharing system, which may affect its benefits. We investigate whether the opportunity...