Information sharing in a make-to-stock supply chain

Juliang Zhang; Jian Chen

doi:10.3934/jimo.2014.10.1169

Article Contents

2014, Volume 10, Issue 4: 1169-1189. Doi: 10.3934/jimo.2014.10.1169

This issue Previous Article Optimal ordering policies and sourcing strategies with supply disruption Next Article On the multi-server machine interference with modified Bernoulli vacation

Information sharing in a make-to-stock supply chain

Juliang Zhang^1, and
Jian Chen^2,

1.
Department of Logistics Management, School of Economics and Management, Beijing Jiaotong University, Beijing, 100044
2.
Department of Management Science and Engineering, School of Economics and Management, Tsinghua University, Beijing, 100084

Received: January 31, 2013

Revised: August 31, 2013

Published: September 2014

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Abstract

This paper addresses how different coordination mechanisms affect the information sharing behavior in a supply chain. We study information sharing in a make-to-stock supply chain under wholesale contract and revenue sharing contract. Under wholesale contract, we show that information sharing is always beneficial to the supplier and identify the conditions ensuring that information sharing is beneficial to the retailer. Under revenue sharing contract, information sharing is beneficial to the supplier, the retailer and the supply chain. This research indicates that whether sharing the demand information is beneficial depends on the coordination mechanism and parameters.

Keywords:

Mathematics Subject Classification: Primary: 90B50, 91B06; Secondary: 91A10.

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