Beyond Forecast Accuracy: Decision Support in Supply Chain Management

Creators: John, Jessel and Engel, Tobias
Title: Beyond Forecast Accuracy: Decision Support in Supply Chain Management
Item Type: Conference or Workshop Item
Event Title: (Proceedings of the) 21st Midwest Association for Information Systems Conference (MWAIS) "The Future of Work: AdaptingT to the Age of AI and Automation"
Event Location: Athens, OH, USA
Event Dates: May 21-22, 2026
Projects: TTZ Leipheim
Paper No. / Type of Paper: 57 / Research in Progress
Date: May 2026
Divisions: Informationsmanagement
Abstract (ENG): Supply chain simulations have long served as educational tools for understanding demand variability and the bullwhip effect. For example, the beer distribution game demonstrates these phenomena in simplified settings, whereas real-world supply chains are more complex. This research-in-progress paper describes the development of a forecasting decision support dashboard integrated into a more realistic supply chain simulation game, testing three forecasting algorithms, Croston’s method, Exponential Smoothing, and Random Forest, across two games involving a six-tier supply chain over 240 rounds. Our preliminary results reveal that forecasting accuracy degrades substantially upstream through the supply chain, with Mean Absolute Percentage Error increasing from under 2% at Tier 1 to over 80% at Tier 5, regardless of the algorithm used. These findings suggest that forecasts alone may be insufficient to support decision-making in complex, multi-tier supply chains, underscoring the need for behavioral research on how participants use forecasting tools.
Forthcoming: No
Language: English
Citation:

John, Jessel and Engel, Tobias (2026) Beyond Forecast Accuracy: Decision Support in Supply Chain Management. In: (Proceedings of the) 21st Midwest Association for Information Systems Conference (MWAIS) "The Future of Work: AdaptingT to the Age of AI and Automation", May 21-22, 2026, Athens, OH, USA, Paper 57 / Research in Progress.

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