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Analyzing the Impact of Coordinated Decisions within a Three-Echelon Supply Chain

Analyzing the Impact of Coordinated Decisions within a Three-Echelon Supply Chain

Mauricio Núñez-Muñoz, Jairo R. Montoya-Torres
Copyright: © 2009 |Volume: 2 |Issue: 2 |Pages: 15
ISSN: 1935-5726|EISSN: 1935-5734|ISSN: 1935-5726|EISBN13: 9781615203321|EISSN: 1935-5734|DOI: 10.4018/jisscm.2009040101
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MLA

Núñez-Muñoz, Mauricio, and Jairo R. Montoya-Torres. "Analyzing the Impact of Coordinated Decisions within a Three-Echelon Supply Chain." IJISSCM vol.2, no.2 2009: pp.1-15. http://doi.org/10.4018/jisscm.2009040101

APA

Núñez-Muñoz, M. & Montoya-Torres, J. R. (2009). Analyzing the Impact of Coordinated Decisions within a Three-Echelon Supply Chain. International Journal of Information Systems and Supply Chain Management (IJISSCM), 2(2), 1-15. http://doi.org/10.4018/jisscm.2009040101

Chicago

Núñez-Muñoz, Mauricio, and Jairo R. Montoya-Torres. "Analyzing the Impact of Coordinated Decisions within a Three-Echelon Supply Chain," International Journal of Information Systems and Supply Chain Management (IJISSCM) 2, no.2: 1-15. http://doi.org/10.4018/jisscm.2009040101

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Abstract

Supply chain performance is highly influenced by the coordination level between its members, which needs information sharing. In this article we consider a three-echelon direct sell supply chain model and focus on the problem of coordinated decision-making between its members. Our contribution is a first approach that measures the impact of the degree of coordination between the members. Demand behavior is modeled using a geometric Brownian process. Simulation models are run in order to analyze various cooperation scenarios. Our results show a direct relation between the degree of coordination within the supply chain and the total system cost. Although this result is intuitive, our simulations allowed us to quantify such a relation and in which measure these costs are whether or not associated to imperfect coordination

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