Unformatted text preview: on often shared in a supply chain include performance
metrics and capacity. Performance metrics include product quality data, lead times,
queuing delays at workstations and service performance. By sharing this type of
information, the supply chain can identify the bottlenecks of the chain and improve the
overall performance. Chrysler, for example, shares the quality and on-time delivery
performance data of all its suppliers across the supply chain. Each supplier can log on to
the system to check its performance and its relative standing among the suppliers in the
same category. In the same spirit, supply chain partners can jointly develop a
performance metric that measures the performance of the entire supply chain. For
example, they can measure the sojourn time of an order in the supply chain tracking how
much time each order spends at each workstation and stocking point. This metric will
provide valuable information to improve the delivery time performance of the overall
Capacity information can contribute to mitigating potential shortage gaming
behavior, thereby countering a potential source of the bullwhip effect. By sharing
9 planned capacity information with the downstream partners well in advance, supply chain
partners can coordinate and prepare against possible shortages. Semiconductor foundries,
for example, routinely share their capacity status with the buyers to weather through
peaks and valleys of volatile demand.
The extent of information sharing in a supply chain is expanding. A recent study
on the PC industry is a case in point . The study identified some advanced form of
information sharing whereby a PC manufacturer shares with its supplier its own demand
forecasts, as well as the demand forecasts from its customers Figure 2 shows how PC
supply chain partners are sharing information with their partners.
Figure 2: Information Sharing in the PC Supply Chain
3. Models of Information Sharing
The system model of information sharing is fast evolving over time as the internet
emerges as a new cost-effective platform. By the system model we mean the mode of
business and its supporting syste...
View Full Document
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