Journal
INFORMATION SYSTEMS RESEARCH
Volume 12, Issue 4, Pages 406-419Publisher
INST OPERATIONS RESEARCH MANAGEMENT SCIENCES
DOI: 10.1287/isre.12.4.406.9701
Keywords
electronic data interchange; continuous replenishment program; supply chain partnerships; interorganizational systems; IT justification
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Electronic data interchange (EDI), used traditionally to exchange business documents, has recently been extended to facilitate interorganizational collaborative processes such as the continuous replenishment program (CRP). The key characteristics of CRP are the sharing of real-time inventory data by retailers with manufacturers and continuous replenishment of retailer inventory by manufacturers. Prior research on EDI has focused on the transaction efficiency of EDI. We analyze the impact of information sharing and continuous replenishment in the CRP context and study the factors that affect the value of CRP. The study quantifies the value derived from CRP and the optimal number of retailers a manufacturer should partner with.
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