Information Sharing in Multi-Level Supply Chain with Demand Uncertainty

Previous research indicated the effectiveness of information sharing on supply chain through analyzing simplified two-level supply chain model to counteract the bullwhip effect, describing growing variation upstream in a supply chain. In this paper, we present a simulation study that investigates the effectiveness of information sharing under demand uncertainty scenarios within a complex multi-level supply chain model. In our research, a computer model is developed to simulate the complex multi-level supply chain model. We build a new supply chain performance measure mechanism. The simulation data and results analysis show both distributors and suppliers gain significantly from information sharing except retailers. Further more, the improved mechanism is feasible on supply chain performance measure.