The beneficial effect of information sharing in a two-stage reverse supply chain

Abstract

In this paper, we analyse the effect of information sharing structure in which collection and remanufacturing capacity design is considered under the stochastic environment. We consider a two-stage reverse supply chain, which consists of single collector and single remanufacturer, and these two actors collaborate with each other to share their own information in order to get better performance from system perspective. We develop four different optimisation models according to the schemes of these two actors' collaboration for information sharing. Through a numerical example, we examine the value of information sharing with consideration of variance, and identify the robustness of the models in a simulation study. From the extensive numerical analyses, we conclude that the issues who leads information sharing scheme between two actors and which information is shared can show different performance for both each individual actor and system. Furthermore, with respect to information uncertainty, the significance of variance management on return rate in a reverse supply chain is also identified. Keywords: information sharing; reverse supply chain; capacity design; newsvendor model.Reference to this paper should be made as follows: Son, Y., Kim, T. and Omar, M. (xxxx) 'The beneficial effect of information sharing in a two-stage reverse supply chain', Int.

Multidimensional value creation through different reverse supply chain relationships in used clothing sector

“…This case shows evidence of integration efforts, either to co-create training procedures or to routinize tacit skills, required to align the incentives. P2b is consistent with the findings of Son et al (2015) which highlights that one-sided development or sharing of information leads to higher relative bargaining power (Lavie, 2006).…”

“…Several other forms of collaborative relationships can be noticed in RSCs to create multidimensional values, e.g. supplier relationship management is aimed at lowering supplier opportunity costs (Aitken and Harrison, 2013), while other coordinating mechanisms through information sharing (Jayaraman et al , 2008; Olorunniwo and Li, 2010; Son et al , 2015), joint problem-solving (Simpson, 2010), collaborative education and workplace training (Pal, 2017; Xie and Breen, 2012), and dual IT and reverse logistics competency can ensure higher transparency, information integration, efficiency, environmental behavior etc.…”

“…Recent RSC studies have also referenced certain elements of RT to explore the relational or collaborative aspects of value creation in RSCs, e.g. relational asset generation (Chan, 2007; Simpson, 2010), information sharing (Li and Olorunniwo, 2008; Olorunniwo and Li, 2010; Son et al , 2015), knowledge codification (Aitken and Harrison, 2013), resource complementarities (Simpson, 2010), governance mechanism (Aitken and Harrison, 2013; Daugherty et al , 2003; Jack et al , 2010).…”

“…However, often in such contexts value appropriation happens asymmetrically, and the partner having greater access to information also gets higher share of the jointly created “profit” (Cox, 1999; Lavie, 2006; Nyaga et al , 2013). Only Son et al (2015) prescribe a solution through better revenue sharing model for incentivizing collector-remanufacturer knowledge and information sharing for capacity design.…”

“…In RSCs, such collaborative relationships between firms take various dyad types, e.g. simpler buyer-seller or supplier-customer transactions (Aitken and Harrison, 2013; Son et al , 2015) to more strategic collaborations (e.g. as proposed in Lau and Wang, 2009; Olorunniwo and Li, 2010; Simpson, 2010), and in connection adopts diverse governance mechanisms, exemplified by trust or formal contractual arrangements (Aitken and Harrison, 2013; Jack et al , 2010).…”