Effects of information synchronization frequency on the stability of supply chains

With modern supply chains hurtling towards 'information overloading,' it is of great interest to know what data is required for effective decision making and how often the data needs to be updated. The latter part on how often is the focus of this paper. The inventory and production ordering policies among the players (Manufacturer and Distributors) of a two echelon supply chain are studied. System dynamics models of the different players are developed. Z-transform techniques are employed to derive the general stability condition. Stability of the supply chain under different strategies (communicative vs. vendor managed inventory) is appraised and their implications on the information synchronization needs are analyzed.