What is a recommended strategy to combat shortage gaming?

The recommended strategy to combat shortage gaming is to allocate orders based on past demand. This approach helps in creating a more stable and predictable ordering system for both suppliers and customers. When orders are allocated based on historical data, it reduces the tendency for customers to overstate their demand due to anticipated shortages. In turn, it creates a fairer environment where all parties operate based on reliable information rather than speculative forecasts.

By using past demand patterns, organizations can better match supply with genuine customer needs, curbing the reactive behavior commonly observed during times of perceived scarcity. This strategy fosters better relationships and trust between suppliers and customers, alleviating the pressure that often leads to shortage gaming.

The other strategies might not effectively address the core issue. For example, reducing stock levels could exacerbate the situation, as lower stock might heighten concerns about availability. Encouraging customers to forecast demand is generally beneficial, but it could still lead to inaccuracies and potential over-ordering if customers provide inflated forecasts. Offering discounts might incentivize orders but could also lead to further distortion of demand patterns unless carefully managed.