Title
Ex Post Demand Information Sharing Between Differentiated Suppliers And A Common Retailer
Abstract
We consider ex post demand information sharing in a two-echelon supply chain in which two suppliers sell differentiated products through a common retailer. We model three scenarios of information sharing to characterise the conditions under which information sharing may benefit or hurt different players: (1) no supplier is informed; (2) only one supplier is informed; and (3) both suppliers are informed. We find that the retailer may voluntarily share the low demand information when the product differentiation and demand magnitude satisfy certain conditions. In contrast, the retailer has no incentive to share the high demand information, even though this information benefits the suppliers. To achieve information sharing, we propose a side payment mechanism, which allows benefitted players to subsidise hurtful players. Finally, we extend our model by considering a situation where the suppliers have limited capacity and may invest to ramp up production capacity to satisfy a high demand.
Year
DOI
Venue
2020
10.1080/00207543.2019.1600758
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Keywords
DocType
Volume
supply chain management, demand information sharing, product differentiation, side payment, information sharing value
Journal
58
Issue
ISSN
Citations 
3
0020-7543
0
PageRank 
References 
Authors
0.34
0
4
Name
Order
Citations
PageRank
Hui Lei121.74
Jingru Wang200.34
Lusheng Shao331.41
Honglin Yang453.11