 Coordination of information sharing in a supply chainJuliang Zhang and Jian Chen International Journal of Production Economics, 2013, vol. 143, issue 1, 178-187 Abstract: In this paper, we study information sharing in a supply chain consisting of one supplier and one retailer, in which both the supplier and the retailer possess partial information on the demand. Under the single price contract, we show that whether a firm reveals its private information depends on the quality (variance) and the correlation of the two firms' information and the other firm's information revelation behavior. For the case that one firm (the retailer or the supplier) has complete information on the demand, the equilibrium is that the firm with complete information conceals its information and another reveals its information. Finally, we show that revenue sharing contract is coordinative, which ensures that both firms share their information completely and the retailer chooses the sale quantity which maximizes the total profit of the supply chain. This study shows that the members in a supply chain must sign coordinative contract in order to ensure that they share their information. Keywords: Information sharing; Contract; Supply chain; Coordination (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:143:y:2013:i:1:p:178-187 DOI: 10.1016/j.ijpe.2013.01.005 Access Statistics for this article International Journal of Production Economics is currently edited by Stefan Minner More articles in International Journal of Production Economics from Elsevier |
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