The impact of information sharing and inventory control coordination on supply chain performances

The impact of information sharing on ordering policies to improve supply chain performances

“…As previously stated, collaboration has a significant impact on supply chain performances when each partner avoids to pursue local targets and hurt network profits (Holweg et al, 2005;Ciancimino et al, 2012;Cho & Lee, 2013;Costantino et al, 2014c;Ramanathan, 2014). Collaboration starts with information sharing, the main coordination mechanism to mitigate the bullwhip effect and its impacts (Lee et al, 1997b;Chen et al, 2000;Cho & Lee, 2013;Ma, Wang, Che, Huang, & Xu, 2013).…”

“…the practice of frequently updating the demand forecasts and subsequently adjusting the parameters of the inventory replenishment rules (ordering policies) (Dejonckheere et al, 2004;Lee & Wu, 2006;Hoberg, Bradley, & Thonemann, 2007;Costantino et al, 2015b). Specifically, ordering policies have been recognized as a major cause of the bullwhip effect (Dejonckheere et al, 2004;Costantino, Di Gravio, Shaban, & Tronci, 2014b, 2014c, 2014d, 2015a. Jakšič and Rusjan (2008) demonstrated that certain ordering policies could be inducers of the bullwhip effect, while others inherently lower demand variability.…”

“…The real state of information progressively hides while these distortions and misperceptions do not allow prompt responses to irregularities and unexpected events (Niranjan, Wagner, & Aggarwal, 2011). This lack of coordination and visibility among partners significantly affects business performances, causing inefficiencies and resulting in an increase of management costs due to (Costantino, Di Gravio, Shaban, & Tronci, 2014c): high levels of inventory to face unexpected variations of the demand with a relative increase of stocking costs; low service level to customers for unexpected stock-outs that, in the worst cases, can cause the cancelation of orders; reduction of quality for the necessity to increase production rates to satisfy peaks of demand;…”

“…Many studies have attempted to quantify the combined impact of Order-Up-To policy with different forecasting methods (Chen et al, 2000;Dejonckheere et al, 2003;Zhang, 2004;Chandra & Grabis, 2005;Kelepouris, Miliotis, & Pramatari, 2008;Wright & Yuan, 2008), and lead-time (Chen et al, 2000;Chatfield et al, 2004;Zhang, 2004;Chandra & Grabis, 2005;Kelepouris et al, 2008;Agrawal, Sengupta, & Shanker, 2009). Furthermore, the impact of collaboration and information sharing, as a bullwhip effect avoidance approach, has been evaluated and quantified in supply chains employ the order-up-to policy (Chen et al, 2000;Chatfield et al, 2004;Kelepouris et al, 2008;Costantino, Di Gravio, Shaban, & Tronci, 2013b, 2014c.…”

The Economic Effect of Virtual Warehouse-Based Inventory Information Sharing for Sustainable Supplier Management

“…Recently, Feng [40] showed the importance of information sharing in the supply chain by establishing an SD model of supply chain information sharing and analyzing several scenarios. Costantino et al (2014) investigated the interaction of collaboration and coordination in a four-echelon supply chain in different scenarios of information sharing levels [41]. This research showed the bullwhip effect and how the inventory variance increased and amplified when a periodic review order-up-to level policy was applied, noting that more benefits were generated when coordination started at downstream echelons.…”