Effect of information sharing on the performance of a four stage serial supply chain under back order and lost sale situations

Abstract

In any supply chain (SC) system, information sharing is very important as it supports other SC drivers to enhance coordination and it thereby improves the performance of the entire SC. The objective of this study is to analyse the performance of a four level serial SC under eight different kinds of information sharing cases, with backorder and lost sales situations. The study has been done using experiments on SC simulation game software called 'SC role play game'. Steady state results from the game under different cases have been used to understand the behaviour under different information sharing cases. The data generated under different cases were subjected to statistical analysis to check for significant impact on performance between cases. The results show that the 'traditional' way of information sharing produces least performance and 'demand and SC performance' information sharing provides best performance for the SC under both backorder and lost sales situations. It is also seen that the performance improvement with better information sharing is more in the case of lost sales situation compared to backorder situation.

Inventory parameters for a serial supply chain with lost sales through genetic algorithm approach

“…Further, they examined the effects of serially correlated demands on probabilistic lost-sale inventory model. Further, Ambilikumar et al (2016) have analysed the performance of a four level serial SC under eight different kinds of information sharing cases, with backorder and lost sales situations. They have highlighted that the entire performance can be improved only by sharing relevant information about operating parameters of each player of SC with other players and concluded that the overall cost which is the sum of inventory cost and backorder cost/lost sales cost is used to measure the entire performance of the SC.…”