Collaboration and its impact on Supply Chain Dynamics

Document Type

Conference Proceeding

Publication Date


Publication Title

IIE Annual Conference. Proceedings


In the past decade companies have realized that although their focus on consumer satisfaction has been important in achieving in-house innovation, their competitiveness and profitability have not improved considerably. A primary reason for this is that independent inventory management decisions are made by supply chain partners. Businesses have now realized that collaboration among trading firms is a more effective process to deal with issues related to inventory management, as compared to the customary approach of shifting the load of inventories. This research demonstrates, through a dynamic simulation approach, the positive performance outcomes of collaboration such as increased sales, improved profits, reduced inventory levels, reduced lost sales and improved order fill rates.