%0 Journal Article
%T The value of sharing advance capacity information under ¡°zero-full¡± supply capacity availability
%A Marko Jak£¿i£¿
%A Borut Rusjan
%J Economic and Business Review
%D 2009
%I University of Ljubljana
%X The importance of sharing information within modern supply chains has been established by both practitioners and researchers. Accurate and timely information helps firms effectively reduce the uncertainties of a volatile and uncertain business environment. We model periodic review, single-item, stochastic demand and stochastic supply where, in a given period, supply is either available or completely unavailable. In addition, a supply chain member has the ability to obtain advance capacity information (¡®ACI¡¯) about the future supply capacity availability. We show that the optimal ordering policy is a base stock policy with the optimal base stock level being a function of future capacity availability or unavailability given through ACI. In a numerical experiment we quantify the value of ACI and provide relevant managerial insights.
%U http://www.ebrjournal.net/ojs/index.php/ebr/article/view/22