American Institute of Mathematical Sciences

October  2014, 10(4): 1169-1189. doi: 10.3934/jimo.2014.10.1169

Information sharing in a make-to-stock supply chain

 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, China

Received  February 2013 Revised  September 2013 Published  February 2014

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.
Citation: Juliang Zhang, Jian Chen. Information sharing in a make-to-stock supply chain. Journal of Industrial & Management Optimization, 2014, 10 (4) : 1169-1189. doi: 10.3934/jimo.2014.10.1169
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