The value of information sharing in a two-stage supply chain with production capacity constraints: The infinite horizon case

This is an extended abstract of a paper that was a finalist in the Manufacturing and Service Operating Management Society's 2001 Student Paper Competition. To address issues of when information sharing provides significant cost savings and how manufacturers can use this information most effectively in a make-to-stock production system, a single product, periodic review, two-stage production-inventory system with a single capacitated manufacturer and a single retailer having independent demand and using an order-up-to inventory policy is investigated.