the value of sharing advance capacity information under “zero-full” supply capacity availability
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ID: 192243
2010
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Abstract
<p><em>The importance of sharing information within modern supply chains has been established by both practitioners and researchers. Accurate and timely information helps firms effectively reduce the uncertainties of a volatile and uncertain business environment. We model periodic review, single-item, stochastic demand and stochastic supply where, in a given period, supply is either available or completely unavailable. In addition, a supply chain member has the ability to obtain advance capacity information (‘ACI’) about the future supply capacity availability. We show that the optimal ordering policy is a base stock policy with the optimal base stock level being a function of future capacity availability or unavailability given through ACI. In a numerical experiment we quantify the value of ACI and provide relevant managerial insights.</em></p>
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rusjan2010economicthe
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| Authors | ;Borut Rusjan;Marko Jakšič |
| Journal | İletişim kuram ve araştırma dergisi |
| Year | 2010 |
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