Research Seminar: The Value of Information Design in Supply Chain Management
How should a retailer design their demand information disclosure policy when sourcing from a priority supplier and a backup supplier?
On March 2, we had the pleasure to have Huseyin Gurkan, Associate Professor of Management Science, ESMT Berlin, Germany, presenting his recent works on information design in supply chains.
Information disclosure is a strategic decision problem in supply chain management: Sharing demand information with the priority supplier increases their production volume but meanwhile weakens the backup supplier’s incentive to produce, since the potential residual demand would become very marginal. This results in the undesirable situation that the backup supplier is no longer a backup plan when demand actually increases. To avoid this, the presented works suggest that the retailer keeps the priority supplier uninformed, while fully disclosing the demand information to the backup supplier.
https://sites.google.com/view/gurkan
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