The Effect Of Information-Sharing On Inventory In Supply Chain

For a long time academe pay their attention on single inventory. The first control strategy of single inventory is EOQ model. Most of the EOQ models cover ordering cost, holding cost and shortage cost, with an invariable demand and price is steady. Along with the idea of supply chain the inventory of supply chain comes to be one of the issues in academic field. The former studies focused on the "bullwhip effect" and if information-sharing(IS) decreased the inventory cost.Different from the former studies this paper aimed at how the IS affects the inventory. And I studied a three-level supply chain, which includes a manufacturer, a distributor and a retailer. Through analyzing the effect for the ordering quantity, average inventory and average shortage we can find how the IS decreases the inventory of every company in the supply chain. Following is the main contents of this paper:(1)A introduce to classical and modern inventory techniques;(2)The analysis for the layers of IS and finding out what influence it.(3)A analysis for the cost structure of supply chain;(4)Establish a math model and demonstrate the various effect among different IS. (5)A introduce for the surrounding to realization of IS. The creation of this paper is as following:(1) Have proved that the "bullwhip effect" is increasing with the demand fluctuating. (2)There are more profits for up-member than down-member after IS. (3)After IS the ordering quantity and average inventory of up-members are reduced but their average shortage may increase.(4) After IS the ordering quantity and average inventory of supply chain are reduced but no evident effect for the shortage of supply chain.