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Information sharing in a transparent supply chain with transportation disruptions and supplier competition

  • S.I.: Information- Transparent Supply Chains
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Abstract

Currently, highly complex supply networks are vulnerable to various kinds of disruptions, which may greatly affect the operational efficiency of supply chains. This calls for the development of management approaches to build a resilient supply chain under disruptions. In this work, we are mainly interested in transportation disruptions that affect shipments along a supply chain and study the decision problem of suppliers in regards to acquiring and sharing transportation disruption information in a competitive setting. In particular, we investigate a two-echelon supply chain consisting of one buyer and two competing suppliers where the buyer places an order for a single product with the two suppliers. During the product transportation process, a disruption may occur and damage the shipments in transit. In the face of such a transportation disruption, each supplier can either have its shipment inspected and reveal information to the buyer or continue without taking any action. We study this problem by formulating it as a non-cooperative game and derive equilibrium results for the two suppliers on whether or not to share information considering competition. We find that the timing and severity of the transportation disruption affect a supplier’s decision on whether to acquire and share private information. By adopting an incentive mechanism, the buyer can raise the probability that a supplier shares its information, which could eventually enhance the performance of the disrupted supply chain. The supplier in a stronger market position usually acts passively towards the disruption, while the competing supplier tends to use information sharing as a way to win market share from its competitor. In addition, a sensitivity analysis is conducted on some important parameters of our model to show the impact of information sharing on supply chain performance.

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Acknowledgements

This research was partially funded by the National Natural Science Foundation of China (NSFC) under Grants 71431007, 71601054, 71701221, 71701222 and 71991461, the Natural Science Foundation of Guangdong Province under Grants 2016A030313719 and 2019A1515010492, Guangdong Province Soft Science Research Project under Grant 2019A101002074, Guangdong Province Universities and Colleges Pearl River Young Scholar Funded Scheme (2017), and the Ministry of Education in China (MOE) Project of Humanities and Social Sciences under Grant 17YJC630235.

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Authors and Affiliations

  1. School of Management, Guangdong University of Technology, Guangzhou, 510520, People’s Republic of China

    Yi Tao

  2. Institute of Big Data Intelligent Management and Decision, College of Management, Shenzhen University, Shenzhen, 518060, People’s Republic of China

    Xiaofan Lai

  3. Sun Yat-sen Business School, Sun Yat-sen University, Guangzhou, 510275, People’s Republic of China

    Shaorui Zhou

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  1. Yi Tao
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  2. Xiaofan Lai
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Correspondence to Xiaofan Lai.

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Tao, Y., Lai, X. & Zhou, S. Information sharing in a transparent supply chain with transportation disruptions and supplier competition. Ann Oper Res 329, 307–329 (2023). https://doi.org/10.1007/s10479-020-03724-3

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  • DOI: https://doi.org/10.1007/s10479-020-03724-3

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