Modelling the benefits of information sharing-based partnerships in a two-level supply chain

Z. Yu, Hong Yan, Edwin Tai Chiu Cheng

Research output: Journal article publicationJournal articleAcademic researchpeer-review

63 Citations (Scopus)


This paper presents a study aimed at quantifying the benefits of information sharing-based supply chain partnerships. We derive the optimal inventory policies for the manufacturer and the retailer in a two-level decentralized supply chain 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 manufacturer can obtain benefits in terms of reductions in inventory levels and cost savings.
Original languageEnglish
Pages (from-to)436-446
Number of pages11
JournalJournal of the Operational Research Society
Issue number4
Publication statusPublished - 1 Jan 2002


  • Information sharing
  • Inventory control
  • Pareto improvement
  • Partnerships
  • Quick response
  • Supply chain

ASJC Scopus subject areas

  • Management Information Systems
  • Strategy and Management
  • Management Science and Operations Research
  • Marketing

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