Study on Incentive for Demand Information sharing in a Two-tier Supply Chain

This paper focuses on a typical two-tier supply chain made up of demander and supplier, on the basis of the concept of agency by mandate theory, verifies quantitatively the impacts of information sharing upon companies in the supply chain, proposes two incentives, one is that supplier shares supply information with the demander, the other is that supplier reduces demander´s order lead-time, which not only have effect on demander to share information willingly with supplier but also on relaxing bullwhip effect of supply chain