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Analyzing the Impact of Coordinated Decisions within a Three-Echelon Supply Chain

Author

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  • Mauricio Núñez-Muñoz

    (Pontificia Universidad Javeriana, Colombia)

  • Jairo R. Montoya-Torres

    (Universidad de La Sabana, Colombia)

Abstract

Supply chain performance is highly influenced by the coordination level between its members, which needs information sharing. In this article we consider a three-echelon direct sell supply chain model and focus on the problem of coordinated decision-making between its members. Our contribution is a first approach that measures the impact of the degree of coordination between the members. Demand behavior is modeled using a geometric Brownian process. Simulation models are run in order to analyze various cooperation scenarios. Our results show a direct relation between the degree of coordination within the supply chain and the total system cost. Although this result is intuitive, our simulations allowed us to quantify such a relation and in which measure these costs are whether or not associated to imperfect coordination

Suggested Citation

  • Mauricio Núñez-Muñoz & Jairo R. Montoya-Torres, 2009. "Analyzing the Impact of Coordinated Decisions within a Three-Echelon Supply Chain," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 2(2), pages 1-15, April.
    • Handle: RePEc:igg:jisscm:v:2:y:2009:i:2:p:1-15
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    Cited by:

    1. Jairo R. Montoya-Torres & Diego A. Ortiz-Vargas, 2014. "Collaboration and information sharing in dyadic supply chains: A literature review over the period 2000–2012," Estudios Gerenciales, Universidad Icesi, November.

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