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Stability of information‐sharing alliances in a three‐level supply chain
Author(s) -
Sošić Greys
Publication year - 2010
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/nav.20403
Subject(s) - supply chain , information sharing , distributor , economic shortage , business , distortion (music) , supply chain management , outcome (game theory) , bullwhip effect , stability (learning theory) , demand chain , industrial organization , service management , microeconomics , operations research , computer science , marketing , economics , mathematics , mechanical engineering , philosophy , government (linguistics) , amplifier , computer network , linguistics , bandwidth (computing) , world wide web , engineering , machine learning
In their recent article, Leng and Parlar (L&P) (2009) analyze information‐sharing alliances in a three‐level supply chain (consisting of a manufacturer, a distributor, and a retailer) that faces a nonstationary end demand. Supply chain members can share demand information, which reduces information distortion and thus decreases their inventory holding and shortage costs. We expand the results from L&P by considering dynamic (farsighted) stability concepts. We use two different allocation rules and show that under some reasonable assumptions there should always be some information sharing in this supply chain. We also identify conditions under which the retailer in a stable outcome shares his demand information with the distributor, with the manufacturer, or with both remaining supply chain members. © 2010 Wiley Periodicals, Inc. Naval Research Logistics, 2010
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