The Effect of Information Sharing on Inventory in A Two-stage Supply Chain

The problem of information sharing in a supply chain is always an issue among academe. The pervious study focus on the information sharing's effect on the "bullwhip effect". Those papers interest on how to decrease cost by using the information sharing. On the basis of those researches' results, we analyze how the sharing of information impacted the changing of ordering-quality, the average inventory and the shortage anticipation quality in a supply chain consisted by a manufacturer and a retailer. At the end we find manufactory gets more profits than the retailer after the sharing of information between them.