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Comment on “Newsvendor Demand Chasing Revisited”

Author

Listed:
  • Samuel N. Kirshner

    (University of New South Wales Business School, University of New South Wales, Sydney, New South Wales 2052, Australia)

  • Brent B. Moritz

    (Smeal College of Business, Pennsylvania State University, University Park, Pennsylvania 16802)

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.

Suggested Citation

  • Samuel N. Kirshner & Brent B. Moritz, 2020. "Comment on “Newsvendor Demand Chasing Revisited”," Management Science, INFORMS, vol. 66(12), pages 6062-6064, December.
    • Handle: RePEc:inm:ormnsc:v:66:y:12:i:2020:p:6062-6064
    DOI: 10.1287/mnsc.2019.3489
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    References listed on IDEAS

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