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Unformatted text preview: he site processes the information with respective banks for authorization
and payment. Once the credit card is approved, an order number is issued to the
customer. Almost instantaneously, the order is forwarded to the distributor who will
drop-ship the item to the customer. At the distributor warehouse a pick list (along with
12 a bar coded returns label) is printed, and the item is picked and packed. The inventory
database is updated and runs a check whether a reorder point has been reached. If so, it
will trigger a replenishment order to the manufacturer, and ultimately (after an MRP run)
to his suppliers. The carrier is notified of the delivery requirement. As the package is
picked up and moved by the carrier, the customer can visit the Web site at any time to
track the shipment using the order number. In the mean time, the banks clear the
accounts with the retailer, the warehouse, and the carrier. The general ledger, accounting
payable, and accounts receivable are also updated. Note that a retail sale is processed
simultaneously by multiple parties in a mixed format of transactions processing and
information sharing - inventory data at the warehouse is shared between the distributor
and the retailer, and delivery requirements and shipping status information are shared
between the carrier and the retailer.
The information hub does not have to exist physically. As distributed objectoriented computing environments like Common Object Request Broker Architecture or
Distributed Component Object Model  are developed, individual functional modules
may reside at scattered locations and be called and invoked only as needs arise. Thus, the
information hub could exist only as a logical entity.
Information sharing in a supply chain faces several hurdles. The first and
foremost challenge is that of aligning incentives of different partners. It would be naive
of a partner to think that information sharing and cooperation will automatically increase
his or her profit. In fact, each partner is wary of the possibility of ot...
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This note was uploaded on 11/06/2013 for the course ISYE 6202 taught by Professor Staff during the Fall '08 term at Georgia Tech.
- Fall '08
- Industrial Engineering