Skip to main content

Advertisement

Log in

Investigating the value of information sharing in multi-echelon supply chains

  • Research Note
  • Published:
Quality & Quantity Aims and scope Submit manuscript

Abstract

Under the structure of multiple business entities, supply chain management (SCM) offers the external and internal integration of business processes in enterprises. The most important objective of SCM is to enhance the supply chain performance such as reinforcing the service level and increasing profit as well as reducing order cycle time and inventory. In recent years, due to the advancement of information technology, enterprises can manage the product flow and the information flow via economical and efficient mechanisms. The well-organized information sharing can enhance the supply chain performance and allow enterprises to refine their strategies of supply chain in order to maximize their profits. The previous studies pointed out the positive effect of information sharing on the efficiency of supply chain. However, relatively little literature focuses on the performance analysis for multi-echelon supply chain with various information sharing scenarios. By using the simulation technique, this paper models different scenarios of information sharing, and further analyzes the impacts of information quality on multi-echelon supply chain performance. In addition, this paper employs Data Envelopment Analysis (DEA) to integrate multiple performance measures to ensure the information sharing scenarios with enhanced performance.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Barua A., Ravindran S. and Whinston A.B. (1997). Effective intra-organizational information exchange. J. Inform. Sci. 23(3): 239–248

    Article  Google Scholar 

  • Bourland K.E., Powell S.G. and Pyke D.F. (1996). Exploiting timely demand information to reduce inventories. Eur. J. Oper. Res. 92(2): 239–253

    Article  Google Scholar 

  • Charnes A., Cooper W.W., Golany B., Seiford L. and Stutz J. (1985). Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions. J. Econom. 30: 91–107

    Article  Google Scholar 

  • Charnes A., Cooper W.W and Rhodes E.L. (1978). Measuring the efficiency of decision making units. Eur. J. Oper. Res. 2(6): 429–444

    Article  Google Scholar 

  • Cheng T.C.E. and Wu Y.N. (2005). The impact of information sharing in a two-level supply chain with multiple retailers. J. Oper. Res. Soc. 56(10): 1159–1165

    Article  Google Scholar 

  • Coleman J., Lyons A. and Kehoe D. (2004). The glass pipeline: increasing supply chain synchronization through information transparency. Int. J. Techno. Manage. 28(2): 172–190

    Article  Google Scholar 

  • Cook W.D. and Kress M. (1990). A data envelopment model for aggregating preference rankings. Manage. Sci. 36(11): 1302–1310

    Google Scholar 

  • Coyle J.J., Bardi E.J. and Langley Jr.C.J. (2003). The Management of Business Logistics: A supply Chain P16erspective, 7th edn. Thomson Learning, Ohio

    Google Scholar 

  • Forrester J.W.: Industrial dynamics. Harv. Bus. Rev July–August, 37–66 (1958)

  • Gavirneni S., Kapuscinski R. and Tayur S. (1999). Value of information in capacitated supply chains. Manage. Sci. 45(1): 16–24

    Google Scholar 

  • Handfield R.B., Nichols Jr. E.L. Supply chain redesign. Financial Times Prentice Hall, New Jersey (2002)

  • Hammond J.H. (1990). Quick response in the apparel industry. Harvard Business School Note N9-90–038, Cambridge

    Google Scholar 

  • Jansen D.R., Weert A.V., Beulens A.J.M. and Huirne R.B.M. (2001). Simulation model of multi-compartment distribution in the catering supply chain. Eur. J. Oper. Res. 133(1): 210–214

    Article  Google Scholar 

  • Lee H.L., So K.C. and Tang C.S. (2000). The value of information sharing in a two-level supply chain. Manage. Sci. 46(5): 626–643

    Article  Google Scholar 

  • Neubert G., Ouzrout Y. and Bouras A. (2004). Collaboration and integration through information technologies in supply chains. Int. J. Technol. Manage. 28(2): 259–273

    Article  Google Scholar 

  • Obata T. and Ishii H. (2003). A method for discriminating efficient candidates with ranked voting data. Eur. J. Oper. Res. 151(1): 233–237

    Article  Google Scholar 

  • Petrovic D. (2001). Simulation of supply chain behavior and performance in an uncertain environment. Int J. Prod. Econ. 71(1–3): 429–438

    Article  Google Scholar 

  • Rassameethes B., Kurokawa S. and LeBlanc L.J. (2000). EDI performance in the automotive supply chain. International J. Technol. Manage. 20(3–4): 287–303

    Article  Google Scholar 

  • Sahin F. and Robinson E.P. (2002). Flow coordination and information sharing in supply chains: review, implications and directions for future research. Decision Sci. 33(4): 505–536

    Google Scholar 

  • Simchi-Levi D., Kaminsky P. and Simchi-Levi E. (2003). Designing and managing the supply chain: Concepts, strategies and case studies. McGraw-Hill, New York

    Google Scholar 

  • Srinivasan K., Kekre S. and Mukhopadhyay T. (1994). The impact of electronic data interchange technology on JIT shipments. Manage. Sci. 40(10): 1291–1309

    Article  Google Scholar 

  • Strader T.J., Lin F. and Shaw M.J. (1999). The impact of information sharing on order fulfillment in divergent differentiation supply chain. J. Global Inform. Syst. 7(1): 17–25

    Google Scholar 

  • Stroeken J.H.M. (2000). Information technology, innovation and supply chain structure. Int. J. Technol. Manage. 20(1-2): 156–175

    Article  Google Scholar 

  • Terzi S. and Cavalieri S. (2004). Simulation in the supply chain context: a survey. Comput. Ind. 53(1): 3–16

    Article  Google Scholar 

  • Thonemann U.W. (2002). Improving supply-chain performance by sharing advance demand information. Eur. J. Oper. Res. 142(1): 81–107

    Article  Google Scholar 

  • Waller M., Johnson M.E. and Davis T. (1999). Vendor-managed inventory in the retail supply chain. J. Bus. Logistics 20(1): 183–203

    Google Scholar 

  • Widén-Wulff G. and Ginman M. (2004). Explaining knowledge sharing in organizations through the dimensions of social capital. J. Inform. Sci. 30(5): 448–458

    Article  Google Scholar 

  • Yu Z., Yan H. and Cheng T.C.E. (2002). Modeling the benefits of information sharing-based partnerships in a two-level supply chain. J. Oper. Res. Soc. 53(4): 436–446

    Article  Google Scholar 

  • Zhao X., Xie J. and Leung J. (2002). The impact of forecasting model selection on the value of information sharing in a supply chain. Eur. J. Oper. Res. 142(2): 321–344

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Mu-Chen Chen.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Chen, MC., Yang, T. & Yen, CT. Investigating the value of information sharing in multi-echelon supply chains. Qual Quant 41, 497–511 (2007). https://doi.org/10.1007/s11135-007-9086-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11135-007-9086-2

Keywords

Navigation