@article{Hosoda2009,
title = "Impact of market demand mis-specification on a two-level supply chain",
journal = "International Journal of Production Economics",
volume = "121",
number = "2",
pages = "739 - 751",
year = "2009",
issn = "0925-5273",
doi = "https://doi.org/10.1016/j.ijpe.2009.04.024",
url = "http://www.sciencedirect.com/science/article/pii/S0925527309001340",
author = "Takamichi Hosoda and Stephen M. Disney",
keywords = "Order-up-to policy, Base-stock policy, Mis-specification, Forecasting, Box–Jenkins model",
abstract = "This paper investigates the impact of mis-specifying the market demand process on a serially linked two-level supply chain. Box–Jenkins models are used to represent both the true and a mis-specified market demand processes. It is shown that the impact of mis-specification on cost is minor if the supply chain tries to minimise the market demand forecast errors. Furthermore, our analysis suggests that mis-specification does not always result in additional costs. A managerial insight is revealed; poor forecast accuracy is not always bad for the total supply chain costs. In other words, employing more accurate forecasting methods may actually result in higher total supply chain costs."
}