Information‐sharing and coordination in a make‐to‐stock supply chain

Abstract Make‐to‐stock (MTS) production increases stockout risks. This study examines information sharing in a supply chain consisting of an MTS manufacturer and a retailer and proposes a cost‐sharing mechanism to facilitate information coordination. We model the interaction as a two‐stage game: a strategic stage in which the retailer decides whether to acquire and share demand information, and an operational stage in which the manufacturer sets the wholesale price and production quantity, followed by the retailer's retail price decision. Four information scenarios, reflecting different levels of information availability, are analyzed. Our results show that in the MTS context, the retailer prefers not only to withhold demand information but also to conceal the information asymmetry. Information sharing can be achieved through the cost‐sharing mechanism: if demand uncertainty exceeds a critical threshold, the manufacturer can subsidize the retailer's cost of acquiring and sharing information for its access.

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Publication Details

Journal
International Transactions in Operational Research
Published
2025-12-12
DOI
https://doi.org/10.1111/itor.70139
Primary Topic
Supply Chain and Inventory Management
Type
article
Field-Weighted Citation Impact
0.00
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article

Information‐sharing and coordination in a make‐to‐stock supply chain

Yue Qin, Xinyu Wang, Luping Zhang, Chunxia Yu et al.
International Transactions in Operational Research
Supply Chain and Inventory Management
article

Information‐sharing and coordination in a make‐to‐stock supply chain

Yue Qin, Xinyu Wang, Luping Zhang, Chunxia Yu, Shanhui Wu
article en

Abstract

Abstract Make‐to‐stock (MTS) production increases stockout risks. This study examines information sharing in a supply chain consisting of an MTS manufacturer and a retailer and proposes a cost‐sharing mechanism to facilitate information coordination. We model the interaction as a two‐stage game: a strategic stage in which the retailer decides whether to acquire and share demand information, and an operational stage in which the manufacturer sets the wholesale price and production quantity, followed by the retailer's retail price decision. Four information scenarios, reflecting different levels of information availability, are analyzed. Our results show that in the MTS context, the retailer prefers not only to withhold demand information but also to conceal the information asymmetry. Information sharing can be achieved through the cost‐sharing mechanism: if demand uncertainty exceeds a critical threshold, the manufacturer can subsidize the retailer's cost of acquiring and sharing information for its access.

International Transactions in Operational Research
China University of Petroleum, Beijing (CN), Southwestern University of Finance and Economics (CN)
Openalex Percentile: Top 43%
Supply Chain and Inventory Management
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