Information Sharing Value and Its Allotment in Multi-level Supply Chain

In the process of supply chain informatization, how to fairly allot the profit to each supply chain partner is a key problem. A three-level supply chain system involving one manufacturer, many different distribution centers and many different retailers is considered in the paper. After the architecture of costs and profits that information sharing brings to the supply chain is established, the value of inventory cost reduction resulting from the information sharing is especially quantitative analyzed. Then, the profit allotment mechanism of the supply chain with the information sharing is discussed based on the cooperative game theory in order to prompt partners to work together forward to the realization of the information sharing in supply chain