Benefits of information sharing with supply chain partnerships

Zhenxin Yu, Hong Yan, Edwin Tai Chiu Cheng

Research output: Journal article publicationJournal articleAcademic researchpeer-review

356 Citations (Scopus)

Abstract

The power of information technology can be harnessed to help supply chain members establish partnerships for better supply chain system performance. Supply chain partnerships can mitigate deficiencies associated with decentralized control and reduce the "bullwhip effect". This study illustrates the benefits of supply chain partnerships based on information sharing. For a decentralized supply chain comprising a manufacturer and a retailer, we derive the members' optimal inventory policies under different information sharing scenarios. We show that increasing information sharing among the members in a decentralized supply chain will lead to Pareto improvement in the performance of the entire chain. Specifically, the supply chain members can reap benefits in terms of reductions in inventory levels and cost savings from forming partnerships with one another. A case study is provided for illustration.
Original languageEnglish
Pages (from-to)114-119
Number of pages6
JournalIndustrial Management and Data Systems
Volume101
Issue number3
DOIs
Publication statusPublished - 1 Jan 2001

Keywords

  • Decentralization supply chain
  • Information exchange
  • Pareto analysis
  • Partnering

ASJC Scopus subject areas

  • Management Information Systems
  • Industrial relations
  • Computer Science Applications
  • Strategy and Management
  • Industrial and Manufacturing Engineering

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