Coordination in a multiple producers–distributor supply chain and the value of information

Anu Thomas, Mohan Krishnamoorthy, Gaurav Singh and Jayendran Venkateswaran

International Journal of Production Economics, 2015, vol. 167, issue C, 63-73

Abstract: This paper analyses coordination and the value of information in a decentralised multiple-producers–distributor supply chain. The impact of sharing two vital pieces of information of this supply chain-(i) production capacity and (ii) resource constraints – is examined with an example from a coal supply chain. The different components of decentralised supply chain coordination are identified. The ‘value of information’ is computed using a decentralised approach which is developed based on an iterative Lagrangian relaxation algorithm. Results and analysis based on extensive computational experiments with different models which have different levels of information-sharing are presented. As the results show, information-sharing significantly contributes to the strengthening of coordination in a decentralised supply chain. The resource constraint information is found to have higher impact than the production capacity information. The paper concludes with a few ideas to extend and generalise this work.

Keywords: Decentralised decision-making; Value of information; Coordinated scheduling; Decentralised supply chain; Lagrangian relaxation (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:167:y:2015:i:c:p:63-73

DOI: 10.1016/j.ijpe.2015.05.020

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