A study on information sharing for supply chains with multiple suppliers

Yeu Shiang Huang, Jing Sian Hung, Jyh Wen Ho

Research output: Contribution to journalArticlepeer-review

24 Citations (Scopus)

Abstract

This study considers the coordination of a two-echelon supply chain with multiple suppliers, with which information sharing is essential, since it can often enhance the performance of the supply chain, but may also intensify the competition among members in the chain. In general, information sharing among channel members can improve the efficiency of inventory holding by achieving better quality predictions of demand. Nevertheless, sharing perfect information may often result in the problem of double marginalization; while sharing partial information may result in the problem of distortion between demand and inventory, i.e., the bullwhip effect. This study probes into the impacts of information sharing on inventory reduction and profit gains with consideration of possible promotion activities performed by the retailer, which hinders the suppliers from accurately forecasting the market demand. It is found that, as the demand of successive periods is more correlated, information sharing would have more impact on the reduction of inventory level and total costs of the suppliers, i.e., information sharing is more valuable as the correlation coefficient on successive demand increases.

Original languageEnglish
Pages (from-to)114-123
Number of pages10
JournalComputers and Industrial Engineering
Volume104
DOIs
Publication statusPublished - 2017 Feb 1

All Science Journal Classification (ASJC) codes

  • Computer Science(all)
  • Engineering(all)

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