To mitigate the bullwhip effect in a supply chain, Lee et al. (1997) advocated the idea of sharing demand and order information among different supply chain entities by using compatible MRP or ERP systems. Even with full supply chain visibility afforded by an MRP system and no information...

We consider a two-stage serial supply chain with capacity limits, where each installation is operated by managers attempting to minimize their own costs. A multiple-period model is necessitated by the multiple stages, capacity limits, stochastic demand, and the explicit consideration of...