No news, good news: positive impacts of delayed information in MRP

Marco D'Avino, Mario Macry Correale and Massimiliano Maria Schiraldi

International Journal of Management and Decision Making, 2013, vol. 12, issue 3, 312-334

Abstract: Even though many studies have shown the great impact of information on supply chain performances, and in literature the virtues of information sharing are often proclaimed, there still seems to be a lack of common comprehension about how and when the information should be shared and how it should be used in order to gain the best benefits. This paper shows how data on final demand can be shared from down-stream echelons and used in an MRP algorithm, helping up-stream echelons in computing future requirements more accurately. On top of this, this analysis also shows that, counter intuitively, some supply chain performances can be increased introducing a delay in the information exchange. Indeed, through simulation, it has been demonstrated that a properly computed lag in information diffusion between echelons can lead to a reduction of the bullwhip effect.

Keywords: information sharing; information delay; bullwhip effect; material requirement planning; MRP; supply chain management; SCM; supply chain performance; simulation. (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmdma:v:12:y:2013:i:3:p:312-334

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