Impact of Information Sharing in Alternative Supply Chain Network Structures

Abstract

Given the inherent uncertainties pervading the operational environment within real-world supply chains, it becomes imperative for each partnering echelon to focus on individual information requirements from the viewpoint of global optimization of overall supply chain (SC) performance. With this in perspective, it is expedient to explicitly model the SC network to synchronize activities across the cooperating partners. This research is concerned with the performance behaviour of two different SC network structures given different design and control parameters adopted by the partnering echelons within the assumed SC configurations. Accordingly, the authors developed discrete event simulation models of two hypothetical supply chain structures and exploit the Taguchi experimental design procedure as a vehicle for conducting the simulation experiments and analyzing its outcome. The results highlight the relative effects of the assumed design and controlling factors on system-wide SC performance and identify appropriate combinations of these factors for optimal performance concerned. For the average inventory level performance measure, key results reveal that sharing of demand information between partnering echelons should not automatically be taken for granted as a direction for performance enhancement.