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The Value of Downstream Information Sharing on Upstream Supply Chain

Ying Tian, Xiaolin Pan

Abstract

In this paper, we consider a make-to-order supply chain consisting of a single upstream (one manufacture) and downstream (n retailers) which are engaged in Curnot competition and have some private information of demand. Under our assumption, we investigated the value of sharing the demand information of downstream on upstream supply chain. The results showed upstream (the manufacturer) always can get a non-negative value from information sharing, and this value will be increased by share information from more retailers. But the profits of the retailers always worse off by disclosing their demand information to the manufacturer.

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Key concepts: Downstream (manufacturing), Upstream (networking), Supply chain, Information sharing, Business, Upstream and downstream (DNA), Value (mathematics), Competition (biology)