A Simulation Study of Supply Chain Management to Measure the Impact of Information Sharing

Abstract

It has been found that supply chain collaboration has a significant impact on the ability of an organization to meet customer needs and reduce costs. A key step in supply chain collaboration is sharing information among supply chain partners. In this paper a simulation study is presented to investigate the effectiveness of information sharing. The results show that from the perspectives of end inventory and back-order quantities, distributors and wholesalers gain significantly from information sharing, while not much gain can be realized for retailers.