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In this work, a system dynamics simulation approach is proposed to evaluate the effect of sharing information with partners in a supply chain when it is faced with supply-related disruptions which severely affect the product manufacturing. We focus on a simple two-echelon supply chain involving one retailer and two suppliers, and study the retailer’s decision on allocating orders between the suppliers. Three specific settings of information sharing by the suppliers are investigated: (i) no information shared; (ii) information partially shared; and (iii) information completely shared. After establishing corresponding ordering policy under each setting, we conduct extensive numerical analysis to simulate shocks to suppliers’ manufacturing capacity and calculate the resulting extra cost as measure of the effectiveness of information sharing. Simulation results show that with more information shared by suppliers, the retailer is able to make response to disruptions more accurately and timely, the negative impact of which thus can be reduced by larger extent, even though not completely eliminated.

The aim of this study is to present an approach for identifying and prioritizing risk factors of supply chain in the home appliance industry. First, the indexes related to the supply chain risk have been determined by literature review; and then the indexes have been refined by consulting experts; finally, the six main indexes including supplier, manufacturer, customer, environment, distributor and information as well as 32 subsidiary indexes for supply chain risks have been selected. In order to assess the indexes, a fuzzy questionnaire has been developed and distributed to 15 managers and employees of Snowa as one of the Entekhab Industrial Group corporate brands, the main home appliance manufacturing company in Iran. Research population included managers and experts of the company and the analysis approaches included risk-assessment matrix and Shannon fuzzy entropy. Findings indicated that environment, manufacturer and supplier indexes with the weights of 0.105, 0.102 and 0.095, respectively were prioritized as the top three risk factors in product development. Furthermore, the subsidiary indexes of raw material alteration, delay in supply of the demand, work force, after-sale services, competitors and lack of political stability were among the top risk factors of new product development.