On The Model & Optimization For Information Sharing In Supply Chain

Information-sharing in supply chain, to a certain extent, is a kind of ideal and concepts that can be applied both in the operational level of function and the integration and optimization of resources in supply chain. Therefore, what is one of the core elements for resources integration and resources sharing in supply chain, and information sharing in supply chain should be raised to thought-level if that applied to further increased. First of all, the logistics information is an important resource in supply chain will become the commanding heights for enterprises which attributes to its scarcity, the public, as well as re-creative and a super-high appreciation potential. But which forms the dilemma because of the difference of information sharing capabilities between the supply chain-related enterprises and logistics node whch leads to the extreme waste of resources for logistics or depreciation of supply chain services.This Paper explores information-sharing level and the level of functionality which includes the trade information sharing of supply chain, management and control information sharing, decision analysis and strategic plan for information-sharing and so on from the concept of information-sharing in supply chain. On horizontal direction from the point of view, the content of information-sharing activities and logistics functions are closely related through data exchange, sharing information retrieval, shared services approach etc., That forms information-sharing model for supply chain which includes directed peer-to-peer sharing, Internet-based Internet sharing and integrated supply chain management.On this basis, this paper explores the supply chain information-sharing behavior through analysing pricing strategies and compared profits either ihformation sharing or not to do so by constructing a manufacturer and a retailer in a supply chain. In this way, regardless of manufacturer or retailer in supply chain can act the results of information sharing as the decision-making basis for operations and management supply chain.Then, this paper constructs a second-order supply chain that contains m manufacturers (upstream) and n retailers (downstream), and probes the impact of manufacturers, retailers, total profit and the social welfare in supply chain by the use of three-stage game model of information sharing. Manufacturers, in the process of information sharing, often advances economic rent-seeking, information seeking through using shared information what provided by retailers, and pursues to maximize their own interests through the wholesale pricing strategies, so that will damage to the profits of retailers. Therefore the retailers do not actively participate in information sharing, so do as manufacturers. However, they are bound to the formation of a monopoly to control the supply chain if the retailer and the manutacturer share information perfectly, such as wholesale prices and selling prices etc.. Therefore, the interests in supply chain will increase obviously and take the expense of the cost of social welfare if the market demand of downstream in the supply chain does not change significantly.In order to analysising the supply chain information sharing further, the article builds a bilevel programming problem which assumes that the interaction between manufacturers and retailers will be pursued to maximize the objectives and the user needs, which based on the dealer pricing problem in different information-sharing mechanisms and different the mode of purchase behavior of users to share logistics information. In the model, the upper Planning is the retail price optimization models for uppliers and retailers, the lower model is the equilibrium between purchase and demand for the user, which involves with the selection of manufacturers and retailers, the way to buy and the mode of information sharing of logistics that reflects the needs in supply chain that responds to the upper pricing behavior. The article designed sensitivity analysis algorithm and iterative method for solving the bilevel programming problem. In addition, examples analysis showed that the different information-sharing mechanism will lead to different supply chain profit, social welfare and the distribution of market demand, which results in different value-added effect.To sum up, the retailers, in the second-order supply chain that includes the manufacturers and dealers, often do not take the initiative and the sharing of information producers, and manufacturers have to carry out information-sharing initiative. Therefore, if the manufacturers share information in accordance with a certain degree of compensation strategies to compensate for the dealer, which can motivate dealers to participate in information sharing. However, the compensation of sharing information on the dealer is often targeted, and the manufacturer does not make up to each dealer or each shared information. In other word, the manufacturer takes compensation of shared information to the dealers only as a means of incentive for dealers to participate in information sharing, and which can increase profits in the supply chain to a certain extent.Thus, information-sharing in supply chain can be achieved to some extent, and has a certain theoretical and practical significance.