Heuristic Simulation–Optimization Approach to Information Sharing in Supply Chains: A Descriptive Study

The supply chain’s long-term viability is only possible if all levels involved in the supply chain are profitable. Each of these tiers will be profitable if information sharing and an effective and seamless coordination mechanism are achieved between them. This approach reduces the bullwhip effect, which is a substantial risk factor. The most ideal supply chain is a symmetric chain in which the product quantity is transmitted from the upstream tier to the downstream tier in an amount equal to the tier’s order quantity. The study’s goal is to determine the required level of information sharing in order to optimise a supply chain with asymmetric input and output values, as well as to investigate the effects of information sharing on the supply chain’s order fill rate (OFR) and total inventory cost (TIC) using analysis of variance (ANOVA) testing. The supply chain was optimised using particle swarm optimization (PSO), using an objective function that assumed maximum OFR and minimum TIC. The proposed method gave excellent results when comparing the mean, variance, and coefficient of variation. In addition, the technique used an ANOVA test with a 5% significance criterion to confirm the impact of the information sharing level.

Author(S) Details

Kyoung Jong Park
Department of Business Administration, Gwangju University, 277 Hyodeok-ro, Nam-gu, Gwangju 61743, Korea.

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