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Data Communication Based on MQTT in a Polymer Extrusion Process
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Information sharing through digitalisation in decentralised supply chains.

Dimitris Zissis1

  • 1Norwich Business School, University of East Anglia, Norwich, NR4 7TJ UK.

Annals of Operations Research
|December 26, 2022
PubMed
Summary

This study shows that sharing private information can benefit businesses. Implementing a mechanism with incentives encourages truthful information exchange, reducing misinformation and improving supply chain efficiency.

Keywords:
Cloud platform technologiesCoordinationIncentive compatibilityMediator systemMisinformationWin–win situation

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Area of Science:

  • Decision Sciences
  • Information Systems
  • Operations Research

Background:

  • Private information significantly impacts decision-making processes.
  • Decentralized business environments often face challenges with information asymmetry and misinformation.
  • Emerging technologies offer potential solutions for enhanced information sharing.

Purpose of the Study:

  • To investigate the impact of private information on decision-making in business.
  • To explore how emerging technologies can facilitate information sharing and reduce misinformation.
  • To determine if information sharing between distinct business partners can be mutually beneficial.

Main Methods:

  • A supply chain model with two rational firms possessing unverified, private information was developed.
  • Real-time communication via a cloud platform was simulated before firms finalized strategies.
  • A mechanism with incentives was designed to encourage truthful information revelation.

Main Results:

  • Firms may strategically share misinformation to optimize individual objectives in competitive settings.
  • An appropriate mechanism can eliminate information asymmetry and misinformation entirely.
  • Sharing actual information proves beneficial for all parties under the proposed mechanism.

Conclusions:

  • Voluntary information sharing, facilitated by appropriate incentives, can overcome individualistic behavior.
  • Implementing mechanisms that align individual incentives with overall system welfare is crucial.
  • The study quantifies the value of information and benefits of voluntary sharing, indicating significant potential improvements.