Managing Supply Uncertainty with an Information Market
We propose a market-based information aggregation mechanism to manage the supply side uncertainty in the supply chain. In our analytical model, a simple supply chain consists of a group of retailers who order a homogeneous product from two suppliers. The two suppliers differ in their ability to fulf...
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sg-smu-ink.sis_research-28662018-09-03T03:42:30Z Managing Supply Uncertainty with an Information Market GUO, Zhiling FANG, Fang WHINSTON, Andrew B. We propose a market-based information aggregation mechanism to manage the supply side uncertainty in the supply chain. In our analytical model, a simple supply chain consists of a group of retailers who order a homogeneous product from two suppliers. The two suppliers differ in their ability to fulfill orders – one always delivers orders and the other fulfills orders probabilistically. We model the supply chain decisions as a Stackelberg game where the supplier who has uncertain reliability decides a wholesale price before the retailers who independently receive signals about the supplier’s reliability determine their sourcing strategies. We then propose an information market to trade binary contracts with payoffs contingent on the supplier’s true reliability. Using a simple uniform demand distribution, we demonstrate that the market-based information aggregation mechanism improves the overall supply chain efficiency. 2009-12-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/1867 info:doi/10.1007/978-3-642-17449-0_8 https://ink.library.smu.edu.sg/context/sis_research/article/2866/viewcontent/Managing_Supply_Uncertainty_with_an_Information_Market_afv.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Information market Supply chain Uncertainty Game theory Computer Sciences Operations and Supply Chain Management |
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Information market Supply chain Uncertainty Game theory Computer Sciences Operations and Supply Chain Management GUO, Zhiling FANG, Fang WHINSTON, Andrew B. Managing Supply Uncertainty with an Information Market |
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We propose a market-based information aggregation mechanism to manage the supply side uncertainty in the supply chain. In our analytical model, a simple supply chain consists of a group of retailers who order a homogeneous product from two suppliers. The two suppliers differ in their ability to fulfill orders – one always delivers orders and the other fulfills orders probabilistically. We model the supply chain decisions as a Stackelberg game where the supplier who has uncertain reliability decides a wholesale price before the retailers who independently receive signals about the supplier’s reliability determine their sourcing strategies. We then propose an information market to trade binary contracts with payoffs contingent on the supplier’s true reliability. Using a simple uniform demand distribution, we demonstrate that the market-based information aggregation mechanism improves the overall supply chain efficiency. |
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GUO, Zhiling FANG, Fang WHINSTON, Andrew B. |
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GUO, Zhiling FANG, Fang WHINSTON, Andrew B. |
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GUO, Zhiling |
title |
Managing Supply Uncertainty with an Information Market |
title_short |
Managing Supply Uncertainty with an Information Market |
title_full |
Managing Supply Uncertainty with an Information Market |
title_fullStr |
Managing Supply Uncertainty with an Information Market |
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Managing Supply Uncertainty with an Information Market |
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managing supply uncertainty with an information market |
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Institutional Knowledge at Singapore Management University |
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2009 |
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https://ink.library.smu.edu.sg/sis_research/1867 https://ink.library.smu.edu.sg/context/sis_research/article/2866/viewcontent/Managing_Supply_Uncertainty_with_an_Information_Market_afv.pdf |
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