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...mperatives for the anagement. .2. Optimal hedging strategy under noncollaborative forecasting Collaborative forecasting on supply risk entails costly efforts and nvestment from the supplier, such as gathering relevant data, imroving data quality and integrity, developing information infrastrucures. Although the buyer benefits from improved forecast accuracy, he benefit to the supplier often remains unclear. Worse, when the upply chain is not coordinated (e.g., under the wholesale contract), haring supply information may lead to the exploitation by the buyer hat eventually hurts the supplier (Ferguson & Ketzenberg, 2005). hus, the supplier may not share information, resulting in noncollabrative forecasting. We now analyze this situation. Because the supplier does not share is private information s ∈ B, the buyer’s information set B is a parition of the supplier’s B. The buyer only has the common knowledge = [pij] and imperfect signal s(s) ∈ B of s for decision making, where ˜(s) : B → B. Upon observing imperfect signal k ∈ B, the buyer infers he true supply state i ∈ B by ∈ s−1(k) ≡ { s ∈ B : s(s) = k } , k ∈ B, (7) nd B = ∪k∈B s−1(k). In the absence of collaborative forecasting, the uyer is indiffe...

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... this field deal with pricing and lotsizing models (e.g. [9], [10], [11], [12], [13], [14], [15], [16], [17], [18], [19], [20], [21], [22], and [23]) or with 2-echelon systems (e.g. [24], [25], [26], =-=[27]-=-, [28], [29], [30], and [31]). The papers on pricing and lot-sizing models often assume a deterministic environment. In this paper, we focus on a different environment: we study replenishment policies...

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...ress the problem of coordinating decisions of the manufacturer and the distributor operating tomeet price-sensitive randomdemand for a product with a short product life cycle. Ferguson and Ketzenberg =-=[23]-=- examine the value of information sharing, considering The Scientific World Journal 3 Order quantity is decided by retailer Retailer choose a transportation transportation solution Supplier delivers p...