Research on information increment and demand information value in supply chains

The concepts of information increment and demand information value in supply chains are defined, and then the measurement methods of them are established basing on the theory of information science. The mechanism of demand information influencing the ordering process and the wholesaler's expected benefits is clarified by building a supply chain ordering model. The relationship between information increment and information value is studied, when assuming the demands are uniformly and normally distributed. The results of the analysis and the simulation experiment prove that there is a positive correlation between information increment and information value, and the information increment can influence the information user's benefits. The results suggest that it is necessary to establish an effective information evaluation system for members in supply chains to increase their benefits by improving the quality of decision information.