Demand information and spot price information: Supply chains trading in spot markets
We study the effect of information updating in a supply chain with spot market. The new demand information also updates the belief on the spot price, and vice versa. Demand information may benefit or hurt the supplier. Spot price information benefits the manufacturer and hurts the supplier. We also study which type of information updating facility to invest in if a choice has to be made.
spot market information updating supply chain management forward contract dual sourcing