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Operations Research, Systems Engineering and Industrial Engineering Commons™
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Full-Text Articles in Operations Research, Systems Engineering and Industrial Engineering
Information Sharing In Capacity Constrained Supply Chains, Lauren Davis, Russell King, Thom Hodgson, Wenbin Wei
Information Sharing In Capacity Constrained Supply Chains, Lauren Davis, Russell King, Thom Hodgson, Wenbin Wei
Dr. Lauren B Davis
We present a modelling approach for quantifying the value of information in supply chains using Markov decision processes (MDP). The case where information sharing occurs is modelled using a completely observable MDP. A restricted observation MDP is used to model the case where no information sharing occurs. We illustrate the use of this framework on a two-stage capacity-constrained supply chain consisting of a supplier and a retailer. We quantify the value of information sharing in this setting and construct several performance measures to identify the benefits to both the retailer and supplier as a result of the information sharing partnership.
Impact Of Demand Correlation And Information Sharing In A Capacitated Supply Chain With Multiple Retailers, Chanel Helper, Lauren Davis, Wenbin Wei
Impact Of Demand Correlation And Information Sharing In A Capacitated Supply Chain With Multiple Retailers, Chanel Helper, Lauren Davis, Wenbin Wei
Dr. Lauren B Davis
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.