Supply Chain Inventory Management and the Value of Shared Information

@inproceedings{Cachon2000SupplyCI,
  title={Supply Chain Inventory Management and the Value of Shared Information},
  author={G{\'e}rard P. Cachon and Marshall Fisher},
  year={2000}
}
In traditional supply chain inventory management, orders are the only information firms exchange, but information technology now allows firms to share demand and inventory data quickly and inexpensively. We study the value of sharing these data in a model with one supplier, N identical retailers, and stationary stochastic consumer demand. There are inventory holding costs and back-order penalty costs. We compare a traditional information policy that does not use shared information with a full… CONTINUE READING
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