The Cost Impact of Information Delay in a Supply Chain

  • 발행 : 2006.05.01

초록

In this paper, the impact of information sharing, possibly with some delay, on costs in a simple supply chain in which there are two participants, a single retailer and a single manufacturer, is considered. When participants in the supply chain do not use fully integrated EDI, some delay associated with information sharing is inevitable. A mathematical model that allows us to quantify the cost incurred by the manufacturer in the supply chain under information sharing, possibly with some delay, vs. no information sharing is presented. From this model, some managerial implications are gleaned.

키워드

참고문헌

  1. Bourland, K. E., S. G. Powell, and D. F. Pyke, 'Exploiting Timely Demand Information to Reduce Inventories,' European Journal of Operations Research 92 (1996), 239-253 https://doi.org/10.1016/0377-2217(95)00136-0
  2. Buzzell, R. D., and G. Ortmeyer, 'Channel Partnerships Streamline Distribution,' Sloan Management Review, Spring (1995), 85-95
  3. DeCroix, G. A. and V. S. Mookerjee, 'Purchasing demand information in a stochastic-demand inventory system,' European Journal of Operational Research 102 (1997), 36-57 https://doi.org/10.1016/S0377-2217(96)00224-X
  4. Erkip, N., W. H. Hausman, and S. Nahmias, 'Optimal Centralized Ordering Policies in Multi-Echelon Inventory Systems with Correlated Demands' Management Science 36 (1990), 381-392 https://doi.org/10.1287/mnsc.36.3.381
  5. Gavirneni, S., R. Kapuscinski, and S. Tayur, 'Value of Information Sharing in Capacitated Supply Chain,' Management Science 45 (1999), 16-24 https://doi.org/10.1287/mnsc.45.1.16
  6. Hammond, J. H., 'Barilla Spa: A Case Study,' Harvard Business School, (1994)
  7. Hariharan, R. and P. Zipkin, 'Customer-order Information, Leadtimes, and Inventories,' Management Science 41 (1995), 1599-1606 https://doi.org/10.1287/mnsc.41.10.1599
  8. Kim, H., 'The Cost Impact of Incorrect Assumptions in a Supply Chain,' International Journal of Management Science, November (2004), 29-52
  9. Kim, H. and J. K. Ryan, 'The Cost Impact of Using Simple Forecasting Techniques in a Supply Chain,' Naval Research Logistics 50 (2003), 388-411 https://doi.org/10.1002/nav.10065
  10. Lee, H., K. C. So, and C. S. Tang, 'The Value of Information Sharing in a Two-Level Supply Chain,' Management Science 46 (2000), 626-643 https://doi.org/10.1287/mnsc.46.5.626.12047
  11. Silver, E. and S. Peterson, Decision Systems for Inventory Management and Production Planning, 2nd Edition, John Wiley and Sons, New York 1985
  12. Zipkin, P. H., Foundations of Inventory Management, Irwin McGrawHill 1999