Is there a benefit to sharing market sales information? Linking theory and practice

Hosoda, Takamichi, Naim, Mohamed Mohamed ORCID: https://orcid.org/0000-0003-3361-9400, Disney, Stephen Michael ORCID: https://orcid.org/0000-0003-2505-9271 and Potter, Andrew Thomas ORCID: https://orcid.org/0000-0002-3157-9735 2008. Is there a benefit to sharing market sales information? Linking theory and practice. Computers & Industrial Engineering 54 (2) , pp. 315-326. 10.1016/j.cie.2007.07.014

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Abstract

Using a real-life data set, we investigate the benefit of sharing market sales information in a setting where a theoretical model argues there is no benefit from such a collaboration scheme. The set of real Electronic Point Of Sales (EPOS) data and the orders that were placed by a retailer to a suppler was used. We have focused on products that operate under an every day low price strategy. To measure the benefit of the second echelon player the Standard Deviation of the Prediction Errors (SDPE) is used as this is linearly related to inventory costs. It is revealed that the second echelon player can reduce its SDPE by between 8% and 19% by exploiting the shared EPOS data, suggesting that there is a benefit to information sharing. Furthermore, it is proposed that the noise element that is originally contained in the EPOS series is the major source of the information sharing benefit.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics) Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce H Social Sciences > HG Finance
Uncontrolled Keywords:	Data sharing ; Design ; Everyday low price products ; Information sharing ; Logistics ; Management ; Multi-echelon ; Order-up-to policy ; Performance ; Quick scan ; Supply chain management
Additional Information:	Available online 3 August 2007
Publisher:	Elsevier
ISSN:	0360-8352
Date of First Compliant Deposit:	30 March 2016
Date of Acceptance:	27 July 2007
Last Modified:	10 May 2023 23:58
URI:	https://orca.cardiff.ac.uk/id/eprint/19052

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