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.
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
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
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
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
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
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
Cook W.D. and Kress M. (1990). A data envelopment model for aggregating preference rankings. Manage. Sci. 36(11): 1302–1310
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
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
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
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
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
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
Obata T. and Ishii H. (2003). A method for discriminating efficient candidates with ranked voting data. Eur. J. Oper. Res. 151(1): 233–237
Petrovic D. (2001). Simulation of supply chain behavior and performance in an uncertain environment. Int J. Prod. Econ. 71(1–3): 429–438
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
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
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
Srinivasan K., Kekre S. and Mukhopadhyay T. (1994). The impact of electronic data interchange technology on JIT shipments. Manage. Sci. 40(10): 1291–1309
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
Stroeken J.H.M. (2000). Information technology, innovation and supply chain structure. Int. J. Technol. Manage. 20(1-2): 156–175
Terzi S. and Cavalieri S. (2004). Simulation in the supply chain context: a survey. Comput. Ind. 53(1): 3–16
Thonemann U.W. (2002). Improving supply-chain performance by sharing advance demand information. Eur. J. Oper. Res. 142(1): 81–107
Waller M., Johnson M.E. and Davis T. (1999). Vendor-managed inventory in the retail supply chain. J. Bus. Logistics 20(1): 183–203
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
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
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
Author information
Authors and Affiliations
Corresponding author
Rights 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
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11135-007-9086-2