Evaluating the value of information sharing in a supply chain using an ARIMA model

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This paper considers a two-echelon supply chain, which contains one supplier and one retailer. It studies the quantification of the bullwhip effect and the value of information-sharing between the supplier and the retailer under an autoregressive integrated moving average (ARIMA) demand of (0, 1, q). The results show that with an increasing value of q, bullwhip effects will be more obvious, no matter whether there is information sharing or not. When there exists information sharing, the value of the bullwhip effect is greater than it is without information sharing. With an increasing value of q, the gap between the values of the bullwhip effect in the two cases will be larger.