Web‐based simulation portal for investigating impacts of sharing production information on supply chain dynamics from the perspective of inventory allocation

Abstract

Information sharing and coordination between buyer and vendor have been considered as useful strategies to improve supply chain performance. The debate is about what information to share and how to share most cost‐effectively to maximize the mutual benefits of the supply chain as a whole and the individual business players. Proposes a systematic framework for investigating the impacts of sharing production information on the supply chain dynamic performance. This framework supports supply chain researches to study impacts of information sharing under various scenarios. Examines, under the framework, an inventory allocation problem in an arborescent distribution supply chain with two distribution channels competing for the same source of supply. Finds that the levels of benefits by sharing information vary with different players involved in the supply chain. Suggests some guidelines to balance the benefits in a supply chain in order to motivate information sharing.