Value of Information in a Two-Echelon Supply Chain with Limited Capacity

by

Refik Gullu
Middle East Technical University 

In supply chain models it is usually assumed that full information is available for all the parties involved. In real situations there are cases where chain members are independent agents and possess different levels of information. In this study we analyze a supply chain of a supplier and retailers where the capacity of the supplier is limited. Embedding the information asymmetry on the capacity of the supplier in the model, we analyze the response by the retailers using game theoretic tools.