A Cost Value Analysis on Information Sharing in Two-level Supply Chain

Abstract

Information sharing in the supply chain can effectively reduce uncertainty, information asymmetry, "bullwhip effect" and supply chain costs. It can also improve the reaction speed of the supply chain to realize end-user’s satisfaction. This paper, by drawing on relevant literature and taking two-level supply chain as the research object, does a comparative analysis between the supply chain with information sharing and traditional one, and builds a minimized value model for each of them. In addition, by taking the mobile phone industry as an example, it analyzes the value of information-sharing on a numerical approach. The result shows that: information sharing has certain effect on the value increment of a supply chain.