Title

Information sharing in a supply chain with a common retailer

Document Type

Journal article

Source Publication

Management Science

Publication Date

6-5-2015

Volume

Advance online publication

First Page

1

Last Page

19

Publisher

INFORMS

Keywords

supply chain management; common retailer; incentive; information sharing; nonlinear production cost; manufacturer competition

Abstract

We consider the problem of sharing retailer's demand information in a supply chain with two competing manufacturers selling substitutable products through a common retailer. We examine several scenarios with either the retailer or the manufacturers as leaders in offering information (sharing) contracts. We show that a larger production diseconomy or higher competition intensity induces more information sharing. The retailer may benefit from a larger production diseconomy, which is not possible without information contracting. Information contracting always benefits the retailer, and the benefit is larger when she offers contracts sequentially rather than simultaneously to the manufacturers. Information contracting benefits the manufacturers only when they offer the contracts and production diseconomy is large. When either demand uncertainty or production diseconomy is large, the retailer invests more in improving information accuracy. When competition is more intense, she invests more except under some conditions that we fully characterize.

DOI

10.1287/mnsc.2014.2127

Print ISSN

00251909

E-ISSN

15265501

Publisher Statement

Copyright © 2015 INFORMS.

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Full-text Version

Publisher’s Version

Recommended Citation

Shang, W., Ha, A. Y., & Tong, S. (2015). Information sharing in a supply chain with a common retailer. Management Science. Advance online publication. doi: 10.1287/mnsc.2014.2127