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Impact of Demand Correlation and Information Sharing in a Capacitated Supply Chain with Multiple Retailers
Computers and Industrial Engineering (2010)
  • Chanel Helper, North Carolina A & T State University
  • Lauren B Davis, North Carolina A & T State University
  • Wenbin Wei
Abstract
This 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.
Keywords
  • Informationsharing; Markov decision process; Supplychain
Publication Date
2010
Citation Information
Chanel 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/