Environmental Uncertainty Regarding Inventory Ordering

An empirical investigation examining the environmental uncertainty regarding inventory ordering which confronts a retailer in dealing with its suppliers is described. Of particular interest is how this uncertainty impacts on retailers' behavioural relationships with their suppliers. The findings indicate that increased levels of environmental uncertainty regarding inventory ordering result in higher levels of retailer‐supplier conflict. Suppliers that can offer retailers better customer service in order to reduce environmental uncertainty can improve their relations with retailers and thus develop a more efficient distribution system.