NDLI: Inventory Policies and Information Sharing: An Efficient Frontier Approach

Please wait, while we are loading the content...

Inventory Policies and Information Sharing: An Efficient Frontier Approach

Content Provider	Scilit
Author	Caldentey, Rene Giloni, Avi H. Hurvich, Clifford M.
Copyright Year	2019
Description	Journal: SSRN Electronic Journal We consider a two-tier inventory management system with one retailer and one supplier. The retailer serves a demand driven by a stationary moving average process (of possibly infinite order) and places periodic inventory replenishment orders to the supplier. In this setting, we study the value of information sharing and its impact on the retailer’s optimal ordering strategy. We argue that information sharing affects performance through two key cost drivers: (i) on-hand inventory variability and (ii) replenishment order variability. We characterize a “Pareto frontier” between these two sources of variability by identifying optimal inventory replenishment strategies that trade-off one type of variability for the other in a cost efficient way. For the case in which the retailer is able to share her complete demand history, we provide a full characterization of the efficient frontier, as well as of an optimal replenishment policy. On the other hand, when the retailer is not able (or willing) to share any demand information we provide a partial characterization of an optimal solution and show that information sharing does not always add value. We also show that the question of identifying conditions under which information sharing does offer value reduces to a delicate analysis of the invertibility (in a time series sense) of a specific stationary process.
Related Links	http://archive.nyu.edu/bitstream/2451/43902/2/CGH_v1.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3333371
ISSN	10914358
e-ISSN	15565068
DOI	10.2139/ssrn.3333371
Journal	SSRN Electronic Journal
Language	English
Publisher	Elsevier BV
Publisher Date	2019-02-12
Access Restriction	Open
Subject Keyword	Journal: SSRN Electronic Journal Operations Research and Management Science Inventory Control Supply Chain Management Information Sharing Order Smoothing
Content Type	Text
Resource Type	Article
Subject	Public Health, Environmental and Occupational Health Psychiatry and Mental Health

Central Library (ISO-9001:2015 Certified)
Indian Institute of Technology Kharagpur
Kharagpur, West Bengal, India | PIN - 721302

See location in the Map
03222 282435
Mail: support@ndl.gov.in

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in