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Inventory allocation behavior of the distributor during demand shocks and supplier disruptions

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dc.contributor.author Kosgoda, D
dc.contributor.author Perera, HN
dc.contributor.author Aloysius, J
dc.contributor.editor Gunaruwan, TL
dc.date.accessioned 2023-10-19T04:57:41Z
dc.date.available 2023-10-19T04:57:41Z
dc.date.issued 2023-08-26
dc.identifier.citation ** en_US
dc.identifier.uri http://dl.lib.uom.lk/handle/123/21627
dc.description.abstract Inventory allocation is one of the main operations in any supply chain. Most of the time inventory allocation for the retailer is done by the manager of the distribution center. Literature reports three allocation mechanisms namely; proportional, linear, and uniform which can be used by the distributor when allocating inventory to their retailers. However, the distributor struggles to identify the best allocation mechanism when there is a mismatch between available supply and demand. We investigate the inventory allocation behavior of the distributor under three different scenarios; (i). when there are positive demand shocks, (ii) when there are supply disruptions, and (iii) when there are both scenarios. We used a computerized laboratory experiment to study the allocation behavior. We employed undergraduate students as participants in our laboratory experiment. The participants in all treatments were assumed as distributors and they were asked to allocate the inventory using any inventory allocation mechanism out of the three mechanisms. ANOVA techniques were used to analyze our data. Our results suggest, the proportional allocation mechanism as the best allocation mechanism when there are demand spikes. A liner allocation mechanism is ideal to use when there are supply disruptions. Further, when there are both demand spikes and supply disruptions, we recommend using the liner allocation mechanism. en_US
dc.language.iso en en_US
dc.publisher Sri Lanka Society of Transport and Logistics en_US
dc.relation.uri https://slstl.lk/r4tli-2023/ en_US
dc.subject Behavioral operations en_US
dc.subject Inventory allocation decisions en_US
dc.subject Laboratory experiments en_US
dc.title Inventory allocation behavior of the distributor during demand shocks and supplier disruptions en_US
dc.type Conference-Full-text en_US
dc.identifier.faculty Engineering en_US
dc.identifier.department Department of Transport and Logistics Management en_US
dc.identifier.year 2023 en_US
dc.identifier.conference Research for Transport and Logistics Industry Proceedings of the 8th International Conference en_US
dc.identifier.place Moratuwa, Sri Lanka en_US
dc.identifier.pgnos pp. 36-38 en_US
dc.identifier.proceeding Proceedings of the International Conference on Research for Transport and Logistics Industry en_US
dc.identifier.email dilinak@uom.lk en_US
dc.identifier.email hniles@uom.lk en_US
dc.identifier.email Jaloysius@walton.uark.edu en_US


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