Examines the reasons driving French food retailers to build major speculative inventories through forward buying from their suppliers. First analyses the origin of the phenomenon and its strategic basis. Then, using the model of postponement‐speculation proposed by Louis Bucklin in the mid‐1960s, explains why forward buying does not conflict with a reduction of in‐store inventories. Final…
The impact of schedule stability on supplier responsiveness is investigated by comparing schedule and calloff quantities for two automotive assemblers who both use the same supplier. Components for the two assemblers are manufactured by the supplier in cells which are focused by customer. The world class assembler (a Japanese transplant) operated a stable, long‐term schedule policy whereas th…
This paper presents a study on the impacts of information sharing and ordering co‐ordination on the performance of a supply chain with one capacitated supplier and multiple retailers under demand uncertainty. In particular, a computer model is proposed to simulate inventory replenishment decisions by the retailers and production decisions by the supplier under different demand patterns and …