The Effect of Information Sharing on Inventory in A Two-stage Supply Chain

The problem of information sharing in a supply chain is always an issue among academe. The pervious study focus on the information sharing\´s effect on the "bullwhip effect". Those papers interest on how to decrease cost by using the information sharing. On the basis of those researches\´ results, we analyze how the sharing of information impacted the changing of ordering-quality, the average inventory and the shortage anticipation quality in a supply chain consisted by a manufacturer and a retailer. At the end we find manufactory gets more profits than the retailer after the sharing of information between them.