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Information sharing and profit allotment based on supply chain cooperation

Author

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  • 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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    9. 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.
    10. Bin Zhang & Qingyao Xin & Min Tang & Niu Niu & Heran Du & Xiqiang Chang & Zhaohua Wang, 2022. "Revenue allocation for interfirm collaboration on carbon emission reduction: complete information in a big data context," Annals of Operations Research, Springer, vol. 316(1), pages 93-116, September.
    11. 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.
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    15. Guanghua Han & Ming Dong, 2017. "Sustainable Regulation of Information Sharing with Electronic Data Interchange by a Trust-Embedded Contract," Sustainability, MDPI, vol. 9(6), pages 1-22, June.
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    17. Ding, Huiping & Wang, Li & Zheng, Lucy, 2018. "Collaborative mechanism on profit allotment and public health for a sustainable supply chain," European Journal of Operational Research, Elsevier, vol. 267(2), pages 478-495.
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