Impact of information sharing on the partner’s profitability in a two-level supply chain

• Main Authors: Lin Yun-Chen, 林芸甄
• Other Authors: Huang Chin-Yin
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/61775350881349612486

碩士 === 東海大學 === 工業工程與經營資訊學系 === 100 === Nowadays, the relationships among enterprises relationship have been changed from competition to collaboration. The overall benefit of the supply chain is a top priority consideration for decision-making by members. With the advance of information technology, members of the supply chain are closely together through effective information exchange and processing making between the upstream and downstream partners. Hence, information sharing is a very important issue. Most companies are not willing to share information actively to their partners if they do not know any benefits produced by information sharing. In this study, we discussed the issue of information sharing and further quantify the benefits of sharing information so enterprises are willing to share information. Different from past analysis most scholars discussed benefit of information sharing only from the viewpoint of the cost. In this study, we will build the supply chain information sharing model by simulation and add the viewpoint of the profit. The experimental design is explored to discuss whether or not the following factors will significantly affect total profits rise ratio of manufacturer in information sharing compared to no information sharing: average demand d, demand self-correlation coefficient ρ, demand volatility σ , profit margin of the manufacturer P, unit shortage cost of manufacturer π, the unit holding cost of manufacturer H, unit shortage cost of retailer π and holding cost of retailers h. In addition to analyzing main effect of each factor, the interaction between two factors is also addressed. This study further explores whether the manufacturer can share reasonable profits to its retailer and encourage the retailer to share the information. The results show that information sharing can produce more profit with highly self-correlation coefficients, highly variable. This study also finds that although information sharing actually enhances the total profits of the manufacturers, but in some cases, there is no significant profit gain for manufacturers by information sharing. Thus, the retailer can request a reasonable profit through information sharing in order to achieve common benefits and long-term cooperative relationship. And the profit margin of manufacturer is not the critical factor that effect the total profits rise ratio of manufacturer in information sharing compared to no information sharing. Therefore, the amount which the retailer can request is not based on manufacturer profit margin after the retailer shares the information. In addition, manufacturers need to pay attention to dynamic environment which may increase or reduce the original effectiveness of information sharing.