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Article
Information sharing in Capacity Constrained Supply Chains
International Journal of Production Research (2011)
  • Lauren B Davis
  • Russell E King, North Carolina State University at Raleigh
  • Thom J Hodgson, North Carolina State University at Raleigh
  • Wenbin Wei
Abstract
We present a modelling approach for quantifying the value of information in supply chains using Markov decision processes (MDP). The case where information sharing occurs is modelled using a completely observable MDP. A restricted observation MDP is used to model the case where no information sharing occurs. We illustrate the use of this framework on a two-stage capacity-constrained supply chain consisting of a supplier and a retailer. We quantify the value of information sharing in this setting and construct several performance measures to identify the benefits to both the retailer and supplier as a result of the information sharing partnership.
Keywords
  • Markov decision process,
  • supply chain information sharing
Publication Date
2011
Citation Information
Lauren B Davis, Russell E King, Thom J Hodgson and Wenbin Wei. "Information sharing in Capacity Constrained Supply Chains" International Journal of Production Research Vol. 49 Iss. 24 (2011)
Available at: http://works.bepress.com/lauren_b_davis/2/