| Article ID: | iaor20062634 |
| Country: | United Kingdom |
| Volume: | 56 |
| Issue: | 10 |
| Start Page Number: | 1159 |
| End Page Number: | 1165 |
| Publication Date: | Oct 2005 |
| Journal: | Journal of the Operational Research Society |
| Authors: | Cheng T.C.E., Wu Y.N. |
| Keywords: | organization, retailing |
Information sharing is an important component of cooperation in supply chain management. This paper presents a study to evaluate the impact of information sharing on inventory and expected cost in a two-level supply chain with multiple retailers. Three levels of information sharing are given and the optimal inventory policy under each level is derived. We show that both the inventory level and expected cost of the manufacturer decrease with an increase in the level of information sharing.