Impact of information sharing on inventory replenishment in divergent supply chains

Abstract

This research investigates the impact of different levels of sharing information on inventory replenishment of enterprises in three-stage distribution supply chains of the divergent type. This paper has two objectives: (1) to investigate the effects of different levels of information sharing on operating cost, inventory level and backlog level of retailers, distributors, manufacturer and the entire supply chain; and (2) to study which level of information sharing is most beneficial or optimal to each type of enterprise. The entire supply chain under various supply chain scenarios characterized by several parameters including demand variance, lead times, capacity and order batch size is investigated. The impact of sharing information is evaluated in terms of several performance indicators through a multi-agent-based simulation model. The results of the experimental simulation show that no single level of information sharing dominates the others from the perspective of individual enterprises. Some insights are provided for managers who want to implement information sharing.