Comment on "newsvendor demand chasing revisited"

Samuel N. Kirshner; Brent B. Moritz

doi:10.1287/mnsc.2019.3489

Comment on "newsvendor demand chasing revisited"

Samuel N. Kirshner, Brent B. Moritz

Supply Chain and Information Systems

Research output: Contribution to journal › Review article › peer-review

5 Scopus citations

Abstract

Based on a simulation, the authors of "Newsvendor Demand Chasing Revisited"recommended using correlation of orders with lagged demand to measure chasing behavior. They concluded that measuring chasing with regression based on partial adjustment is prone to false positives. We show the purported false positives are due to autocorrelation and recommend using partial adjustment regression-based approaches to evaluate chasing.

Original language	English (US)
Pages (from-to)	6062-6064
Number of pages	3
Journal	Management Science
Volume	66
Issue number	12
DOIs	https://doi.org/10.1287/mnsc.2019.3489
State	Published - Dec 2020

All Science Journal Classification (ASJC) codes

Strategy and Management
Management Science and Operations Research

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10.1287/mnsc.2019.3489

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title = "Comment on {"}newsvendor demand chasing revisited{"}",

abstract = "Based on a simulation, the authors of {"}Newsvendor Demand Chasing Revisited{"}recommended using correlation of orders with lagged demand to measure chasing behavior. They concluded that measuring chasing with regression based on partial adjustment is prone to false positives. We show the purported false positives are due to autocorrelation and recommend using partial adjustment regression-based approaches to evaluate chasing. ",

author = "Kirshner, {Samuel N.} and Moritz, {Brent B.}",

note = "Funding Information: The authors gratefully acknowledge research support from the University of New South Wales Business School and the Pennsylvania State University Smeal College of Business. They are also grateful for the constructive feedback provided by the senior editorial team, associate editor, and reviewers. Publisher Copyright: {\textcopyright} 2020 INFORMS. Copyright: Copyright 2020 Elsevier B.V., All rights reserved.",

year = "2020",

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language = "English (US)",

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journal = "Management Science",

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AU - Moritz, Brent B.

N1 - Funding Information: The authors gratefully acknowledge research support from the University of New South Wales Business School and the Pennsylvania State University Smeal College of Business. They are also grateful for the constructive feedback provided by the senior editorial team, associate editor, and reviewers. Publisher Copyright: © 2020 INFORMS. Copyright: Copyright 2020 Elsevier B.V., All rights reserved.

PY - 2020/12

Y1 - 2020/12

N2 - Based on a simulation, the authors of "Newsvendor Demand Chasing Revisited"recommended using correlation of orders with lagged demand to measure chasing behavior. They concluded that measuring chasing with regression based on partial adjustment is prone to false positives. We show the purported false positives are due to autocorrelation and recommend using partial adjustment regression-based approaches to evaluate chasing.

AB - Based on a simulation, the authors of "Newsvendor Demand Chasing Revisited"recommended using correlation of orders with lagged demand to measure chasing behavior. They concluded that measuring chasing with regression based on partial adjustment is prone to false positives. We show the purported false positives are due to autocorrelation and recommend using partial adjustment regression-based approaches to evaluate chasing.

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ER -

Comment on "newsvendor demand chasing revisited"

Abstract

All Science Journal Classification (ASJC) codes

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