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Competition and cooperation in a two-stage supply chain with demand forecasts

Publication ,  Journal Article
Iida, T; Zipkin, P
Published in: Operations Research
2010
Published version (DOI) Open Access Copy (Duke)

We consider a serial supply chain with one supplier and one retailer. Each obtains some demand forecast information, which may be shared or not. We investigate the members' benefits from sharing information. The forecasts follow a variant of the Martingale model of forecast evolution (MMFE). We construct a simple transfer-payment scheme to align the players' incentives with that of the overall system. The main finding is that, unless the players' incentives are aligned in this way, sharing information makes little sense. It might hurt one or the other player and the system as a whole. ©2010 INFORMS.

Duke Scholars

Paul H. Zipkin
Author Paul H. Zipkin Fuqua School of Business

Published In

Operations Research

DOI

10.1287/opre.1100.0809

ISSN

0030-364X

Publication Date

2010

Volume

58

Issue

5

Start / End Page

1350 / 1363

Related Subject Headings

  • Operations Research
  • 3507 Strategy, management and organisational behaviour
  • 1503 Business and Management
  • 0802 Computation Theory and Mathematics
  • 0102 Applied Mathematics
 

Citation

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Iida, T., & Zipkin, P. (2010). Competition and cooperation in a two-stage supply chain with demand forecasts. Operations Research, 58(5), 1350–1363. https://doi.org/10.1287/opre.1100.0809
Iida, T., and P. Zipkin. “Competition and cooperation in a two-stage supply chain with demand forecasts.” Operations Research 58, no. 5 (2010): 1350–63. https://doi.org/10.1287/opre.1100.0809.
Iida T, Zipkin P. Competition and cooperation in a two-stage supply chain with demand forecasts. Operations Research. 2010;58(5):1350–63.
Iida, T., and P. Zipkin. “Competition and cooperation in a two-stage supply chain with demand forecasts.” Operations Research, vol. 58, no. 5, 2010, pp. 1350–63. Scival, doi:10.1287/opre.1100.0809.
Iida T, Zipkin P. Competition and cooperation in a two-stage supply chain with demand forecasts. Operations Research. 2010;58(5):1350–1363.

Published In

Operations Research

DOI

10.1287/opre.1100.0809

ISSN

0030-364X

Publication Date

2010

Volume

58

Issue

5

Start / End Page

1350 / 1363

Related Subject Headings

  • Operations Research
  • 3507 Strategy, management and organisational behaviour
  • 1503 Business and Management
  • 0802 Computation Theory and Mathematics
  • 0102 Applied Mathematics