The impact of information sharing and coordination in make-to-order supply chain

This paper investigate the impact of information sharing and physical flow coordination in a make-to-order supply chain. We mathematically model and analyze the manufacturer´s ordering policies, vendor´s manufacturing and order fulfillment processes under five alternative integration strategies. Our objective is to measure the value of information sharing and coordination in the supply chain. The experiment results indicate a 22.76% cost reduction moving from traditional supply chain to a fully integrated system. The savings associated with system coordination are not equally allocated among channel members and vary by strategy.