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Coordination in a multiple producers–distributor supply chain and the value of information

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  • Thomas, Anu
  • Krishnamoorthy, Mohan
  • Singh, Gaurav
  • Venkateswaran, Jayendran

Abstract

This paper analyses coordination and the value of information in a decentralised multiple-producers–distributor supply chain. The impact of sharing two vital pieces of information of this supply chain-(i) production capacity and (ii) resource constraints – is examined with an example from a coal supply chain. The different components of decentralised supply chain coordination are identified. The ‘value of information’ is computed using a decentralised approach which is developed based on an iterative Lagrangian relaxation algorithm. Results and analysis based on extensive computational experiments with different models which have different levels of information-sharing are presented. As the results show, information-sharing significantly contributes to the strengthening of coordination in a decentralised supply chain. The resource constraint information is found to have higher impact than the production capacity information. The paper concludes with a few ideas to extend and generalise this work.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:167:y:2015:i:c:p:63-73
    DOI: 10.1016/j.ijpe.2015.05.020
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    References listed on IDEAS

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    1. Thomas, Anu & Venkateswaran, Jayendran & Singh, Gaurav & Krishnamoorthy, Mohan, 2014. "A resource constrained scheduling problem with multiple independent producers and a single linking constraint: A coal supply chain example," European Journal of Operational Research, Elsevier, vol. 236(3), pages 946-956.
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