Impact of Demand Correlation and Information Sharing in a Capacitated Supply Chain with Multiple RetailersComputers and Industrial Engineering (2010)
AbstractThis paper considers a single product, two-echelon capacity constrainedsupplychain consisting of a supplier and two retailers facing correlated end-item demand. We use a decentralized Markov decision process with restricted observations to represent this system and conduct a numerical study to quantify the benefits of information sharing to the retailers under varying levels of supplier capacity and supply allocation mechanisms. Our results show an inverse relationship between capacity and information and indicate the retailers can achieve significant benefits as a result of the information sharing partnership.
- Informationsharing; Markov decision process; Supplychain
Citation InformationChanel Helper, Lauren B Davis and Wenbin Wei. "Impact of Demand Correlation and Information Sharing in a Capacitated Supply Chain with Multiple Retailers" Computers and Industrial Engineering Vol. 59 Iss. 4 (2010)
Available at: http://works.bepress.com/lauren_b_davis/3/