A multiechelon inventory model with fixed replenishment intervals
Management Science
Stochastic dynamic programming and the control of queueing systems
Stochastic dynamic programming and the control of queueing systems
Value of Information in Capacitated Supply Chains
Management Science
Information Flows in Capacitated Supply Chains with Fixed Ordering Costs
Management Science
The Value of Information Sharing in a Two-Level Supply Chain
Management Science
Supply Chain Inventory Management and the Value of Shared Information
Management Science
Computers and Industrial Engineering
Optimal production and rationing decisions in supply chains with information sharing
Operations Research Letters
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We consider a supply chain consisting of one manufacturer (capacitated supplier) and two retailers. We characterize the manufacturer's optimal production policy under selective-information sharing, in which the manufacturer receives demand and inventory information from only one of the two retailers. We show that the manufacturer's optimal production policy is a state-dependent base-stock policy and that the base-stock levels have a monotonic structure. We also perform an extensive numerical study to examine how system factors affect the benefit of information sharing and the relative values of information from each retailer. In addition, we identify cases where the cost saving due to receiving information from only one retailer captures most of the saving that can be obtained when the information is received from both retailers. Finally, we investigate the cost effectiveness of echelon-stock policies in systems with full-information sharing and introduce the "information pooling effect" as well as economies of scale with respect to information sharing.