The study of sharing supply chain information through incentives

Authors:
Huo Hong;Wu Yanhong
Affiliations:
School of Management, Harbin University of Commerce, Harbin;School of Management, Harbin University of Commerce, Harbin
Venue:
CCDC'09 Proceedings of the 21st annual international conference on Chinese control and decision conference
Year:
2009

Citing 5
Cited 0

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Abstract

Information sharing is a main strategy to reduce the specific phenomenon of the supply chain-The Bullwhip Effect. At first, by analyzing why information sharing across the supply chain is not easily achievable, the solutions are put forward from different angles. By considering the unreasonable distribution of the additional profits generating from information sharing and the difficulty of monitoring the information sharing activities, the sold back strategy and price discrimination strategy are introduced. The strategies are on the basis of Principal-agent theory, and to study the demand information sharing in a Two-tier supply chain. At last, through mathematical model analysis, it is clearly seen that the distribution mechanism does not only keep the stability of the alliance, but also reaches the whole optimum.