2011 journal article
Information sharing in capacity constrained supply chains under lost sales
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH, 49(24), 7469–7491.
author keywords: Markov decision process; supply chain information sharing
UN Sustainable Development Goal Categories
12. Responsible Consumption and Production
(Web of Science)
Source: Web Of Science
Added: August 6, 2018
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.