The effect of forecasting and information sharing in SCM for multi-generation products

Proper selection of information sharing policy and forecasting method has a significant impact on supply chain performance, especially in the high-tech industry where the product life cycle is short and multiple generations of products coexist. This paper evaluates the value of information sharing with various forecasting methods where two generations of high-tech products compete with each other in the same market. We consider two market environmental factors and two supply chain factors for the Monte Carlo Simulation and find out the most ideal combination of information sharing policy and forecasting method producing the maximum profits and service level. (c) 2007 Elsevier B.V. All rights reserved.