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Demand Information Sharing for an Efficient Collaborative Supply Chain Planning
Abstract
Nowadays, many consumer goods manufacturers and retailers have understood the need to work together in order to elevate their performance. Such mutual cooperation, focusing beyond day-to-day business and transforming from a contract-based relationship to a value-based relationship is well received in the industries. Also, coupling information sharing in their collaborative setup is valued as an effective forward step. Moreover, advent of technologies naturally supports information sharing across the supply chain. As meeting consumers demand is the main aspect of supply chain, studying supply chain behavior with demand as a shared information makes it more beneficial. The chapter shall analyze demand information sharing in a two-stage supply chain with the performance measure being total cost in terms of profit. In order to quantify and understand better, the different levels of collaboration and their impact on the performance measure are analyzed using discrete event simulation. Arena software is used to simulate the required inventory control scenarios.
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