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| Author: | Gavirneni, S. |
| Title: | Information Flows in Capacitated Supply Chains with Fixed Ordering Costs |
| Journal: | Management Science
2002 : MAY, VOL. 48:5, p. 644-651 |
| Index terms: | INFORMATION SUPPLY SUPPLY CHAIN MANAGEMENT FIXED COSTS |
| Language: | eng |
| Abstract: | Many organizations have only recently recognized that sharing information with other members in their supply chain can lead to significant reduction in the total costs. Usually these information flows are incorporated into existing operating policies at the various parties. In this paper the authors argue that, in some cases, it may be necessary to change the way the supply chain is managed to make complete use of the information flows. The authors support this argument by analyzing a supply chain containing a capacitated supplier and a retailer facing i.i.d. demands. In addition there are fixed ordering costs between the retailer and the supplier. In this setting the authors consider two models. |
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