Papers | Influence factors | Supply chain structures | |||
Information leakage | Cost reduction | System SC | System RC | ||
Fang and Ren[6] | |||||
Wang et al.[29] | |||||
Chen and Özer[5] | |||||
Ha et al.[8] | |||||
Sun et al.[27] | |||||
Cao and Chen[4] | |||||
Our paper |
This study investigates information sharing in two-tier supply chai-ns considering cost reduction effort and information leakage, with either upstream competition (system SC) or downstream competition (system RC). Results show that in system SC without information leakage, the retailer shares information with one supplier when suppliers are efficient in cost reduction, shares information with neither supplier when suppliers are inefficient in cost reduction, and shares information with two suppliers when suppliers are intermediate in cost reduction efficiency. nformation leakage won't affect the information sharing decisions of the retailer. In system RC with or without information leakage, both retailers share information with the supplier when the supplier is efficient in cost reduction and neither retailer shares information with the supplier when the supplier is inefficient in cost reduction. However, the threshold of cost reduction efficiency without information leakage is always lower than that with information leakage, which demonstrates that it is less likely for retailers to share information with information leakage. What's more, the two retailers choose the same information sharing strategies without information leakage but the opposite information sharing strategies with information leakage when the cost reduction efficiency is intermediate.
Citation: |
Table 1. Summary table of literature review
Papers | Influence factors | Supply chain structures | |||
Information leakage | Cost reduction | System SC | System RC | ||
Fang and Ren[6] | |||||
Wang et al.[29] | |||||
Chen and Özer[5] | |||||
Ha et al.[8] | |||||
Sun et al.[27] | |||||
Cao and Chen[4] | |||||
Our paper |
Table 2. Parameters and notations
Parameters and notations | Description |
Selling price of product |
|
Order quantity of product |
|
Potential market size | |
Demand uncertainty with the mean of |
|
Competition intensity and a larger |
|
Production cost of product |
|
Production cost reduction level of product |
|
Cost reduction efficiency of product |
|
Demand signal of retailer |
|
Accuracy of demand signal and a larger |
|
Information sharing decisions | |
Wholesale price of product |
|
Profit of the retailer |
|
Profit of the supplier |
Table 3. Decisions and ex-ante profits in system SC without information leakage
Decisions | Ex-ante profits | |
Notes. |
Table 4. Decisions and ex-ante profits in system SC without information leakage
Decisions | Ex-ante profits | |
Notes. |
Table 5. Decisions and ex-ante profits in system SC without information leakage
Decisions | Ex-ante profits | |
Notes. $\omega^0=\frac{(k(2+\gamma)-1)\alpha+k(2+\gamma)c}{2k(2+\gamma)-1}, \quad x^0=\frac{\alpha-c}{2k(2+\gamma)-1}, \quad q^0=\frac{k(\alpha-c)}{2k(2+\gamma)-1}, $ $\pi_{R}^{0}=\frac{k^2(\alpha-c)^2}{(2k(2+\gamma)-1)^2}, \qquad \pi_{S}^{0}=\frac{k(\alpha-c)^2}{(2k(2+\gamma)-1)^2}$ |
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Supply chain members' expected profit in system SC without information leakage
The retailer's information sharing strategies in system SC without information leakage
Supply chain members' expected profits in system RC without information leakage
Retailers' information sharing strategies in system RC without information leakage
Supply chain members' expected profits in system RC with information leakage
Retailers' information sharing strategies in system RC without information leakage