Some Models for Understanding the Incentives for Supply Chain Collaboration

The need for information sharing has been increasing as a consequence of the globalization of production and sales, and the advancement of enabling technologies. Yet, beyond resolving the technical issues associated with information sharing and joint decision making, a greater challenge is for the supply chain partners to understand the “lost value” due to uncoordinated decision-making, and more importantly, to determine how the recovered value will be shared among the participating stakeholders. This paper presents some models for understanding the incentives for supply chain collaboration, and describes the enabling technologies for collaborative demand planning and replenishment