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Information sharing and profit allotment based on supply chain cooperation

Author

Listed:
  • Ding, Huiping
  • Guo, Baochun
  • Liu, Zhishuo

Abstract

To maximize customer value created by a supply chain system as a whole, one of the key issues in supply chain management is how to have profit and benefit properly shared between partners in an effective manner of the supply chain integration. In this regard, information sharing between partners plays a rather important role in business process and management integration of the supply chain. The paper focuses on analyzing the value created from information sharing by decreasing inventory level and on investigating the collaborative mechanism of providing incentive to retailer by upstream partner via sharing profit gained information sharing in the context of three-echelon supply chain system. The issue of dealing with the interest conflict between the supply chain as a whole and individual partners is addressed based on information sharing analysis by means of cooperative game approach, a graphic model with three-dimensions is developed to depict the possible cooperative solutions of profit allotment between partners, and a problem solving method addressing how the profit allotment between partners can effectively motivate the partners to be cooperative with each other is presented as well.

Suggested Citation

  • Ding, Huiping & Guo, Baochun & Liu, Zhishuo, 2011. "Information sharing and profit allotment based on supply chain cooperation," International Journal of Production Economics, Elsevier, vol. 133(1), pages 70-79, September.
  • Handle: RePEc:eee:proeco:v:133:y:2011:i:1:p:70-79
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ding, Huiping & Zhao, Qilan & An, Zhirong & Tang, Ou, 2016. "Collaborative mechanism of a sustainable supply chain with environmental constraints and carbon caps," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 191-207.
    2. Daniela Petrikova & Tatiana Sorokova, 2016. "Managerial And Entrepreneurial Skills As Determinants Of Business," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 14(1), pages 184-194, December.
    3. Barnes, Jane & Liao, Ying, 2012. "The effect of individual, network, and collaborative competencies on the supply chain management system," International Journal of Production Economics, Elsevier, vol. 140(2), pages 888-899.
    4. Thomas, Anu & Krishnamoorthy, Mohan & Singh, Gaurav & Venkateswaran, Jayendran, 2015. "Coordination in a multiple producers–distributor supply chain and the value of information," International Journal of Production Economics, Elsevier, vol. 167(C), pages 63-73.
    5. repec:gam:jsusta:v:9:y:2017:i:6:p:964-:d:100680 is not listed on IDEAS
    6. repec:eee:ejores:v:267:y:2018:i:2:p:478-495 is not listed on IDEAS
    7. Bian, Junsong & Guo, Xiaolei & Lai, Kin Keung & Hua, Zhongsheng, 2014. "The strategic peril of information sharing in a vertical-Nash supply chain: A note," International Journal of Production Economics, Elsevier, vol. 158(C), pages 37-43.
    8. Yu, Jonas C.P., 2013. "A collaborative strategy for deteriorating inventory system with imperfect items and supplier credits," International Journal of Production Economics, Elsevier, vol. 143(2), pages 403-409.
    9. Bivin, David, 2013. "Production chains and aggregate output volatility," International Journal of Production Economics, Elsevier, vol. 145(2), pages 807-816.
    10. Agata Mesjasz-Lech, 2014. "The Use Of It Systems Supporting The Realization Of Business Processes In Enterprises And Supply Chains In Poland," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 10(2), pages 94-103, December.
    11. Caridi, Maria & Moretto, Antonella & Perego, Alessandro & Tumino, Angela, 2014. "The benefits of supply chain visibility: A value assessment model," International Journal of Production Economics, Elsevier, vol. 151(C), pages 1-19.
    12. Bian, Wenliang & Shang, Jennifer & Zhang, Juliang, 2016. "Two-way information sharing under supply chain competition," International Journal of Production Economics, Elsevier, vol. 178(C), pages 82-94.

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