Supply chain risk management

An agent-based simulation to study the impact of retail stockouts

Teresa Wu, Simin Huang, Jennifer Blackhurst, Xiaoling Zhang, Shanshan Wang

Research output: Contribution to journalArticle

30 Citations (Scopus)

Abstract

In today's highly dynamic and competitive environment, companies are under the pressure to improve their supply chain strategy in order to be more responsive to customer demand. However, supply chains are susceptible to unanticipated events that make responsive supply chain management a challenging task. One such disruption event is a product stockout at the retailer. In this paper, we investigate retail stockouts through the development of an agent-based simulation model in order to develop a better understanding of the effect of different stockout lengths for different products (with different consumer response profiles to stockouts) on both the retailer and the manufacturer of the product. We consider the change of market share as a measure of resilience for both the manufacturer and the retailer to examine the impact of the stockout. Insights are developed for manufacturers and retailers in responding to the stockout disruption.

Original languageEnglish (US)
Article number6193170
Pages (from-to)676-686
Number of pages11
JournalIEEE Transactions on Engineering Management
Volume60
Issue number4
DOIs
StatePublished - 2013

Fingerprint

Supply chain management
Risk management
Supply chains
Industry
Agent-based simulation
Supply risk management
Stockouts
Stockout
Retail
Retailers
Disruption

Keywords

  • Agent-based simulation
  • consumer response
  • market share
  • retail stockout
  • supply network disruption management

ASJC Scopus subject areas

  • Electrical and Electronic Engineering
  • Strategy and Management

Cite this

Supply chain risk management : An agent-based simulation to study the impact of retail stockouts. / Wu, Teresa; Huang, Simin; Blackhurst, Jennifer; Zhang, Xiaoling; Wang, Shanshan.

In: IEEE Transactions on Engineering Management, Vol. 60, No. 4, 6193170, 2013, p. 676-686.

Research output: Contribution to journalArticle

Wu, Teresa ; Huang, Simin ; Blackhurst, Jennifer ; Zhang, Xiaoling ; Wang, Shanshan. / Supply chain risk management : An agent-based simulation to study the impact of retail stockouts. In: IEEE Transactions on Engineering Management. 2013 ; Vol. 60, No. 4. pp. 676-686.
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