Demand variability, forecasting accuracy, and supply information sharing

Abstract

Decision-making needs information. Enterprises in a supply chain make daily operating decisions on the basis of available information of demand and supply. The behaviors of supply chain members would be different under information sharing than otherwise. Demand-side information sharing has been intensively explored. However, supply-side information sharing has not been extensively investigated. This paper examined the impact of supply-side information sharing in a three-stage capacitated supply chain simulation model. In addition, it scrutinized how demand variability and forecasting accuracy moderate the value of supply information sharing. This paper contributes to extending the content and scope of supply chain chain information sharing research. The findings provide important reference for supply chain managers to implement supply information sharing in order to improve decision-making process, reduce uncertainties, and increase visibility in supply chain operations.