Strategic Information Sharing in a Dynamic Supply Chain with a Carrier under Complex Uncertainty

Abstract

Whether to use an information sharing mechanism is investigated in a dynamic supply chain, where one manufacturer, one carrier, and one retailer are faced with uncertain yield, demand, and lead time during multiple periods. Each member is modeled as an adaptive agent based on multiagent technique, and their decisions can be adjusted timely to adapt to external environment. There are two choices for the whole supply chain to deal with uncertain risks: information sharing (IS) or no information sharing (NS). Under strategy IS, the information about market demand and the retailer’s inventory can be shared within the supply chain. For each strategy, the effects of yield, demand, and lead time uncertainties on costs of the supply chain and channel members are studied. It is found that (i) it is rewarding for the upstream manufacturer to use a retailer’s shared information under uncertain yield or demand; (ii) however, information sharing (IS) strategy sometimes should be abandoned for other members and the whole supply chain; (iii) counterintuitively, the increase of transportation time uncertainty benefits the retailer.