Secure Supply-Chain Collaboration: An Example Application

Mikhail Atallah
Vinayak Deshpande
Leroy B. Schwarz

Purdue University
West Lafayette, IN 47906
USA

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“Secure Supply-Chain Collaboration (SSCC)” employs known theoretical results from computer science to enable supply-chain partners to make cooperative decisions without revealing any private information. This talk will describe the application and effectiveness of SSCC protocols to a problem of capacity choice and allocation in a supply chain involving a single supplier and several independent retailers, each with private information about their individual markets (e.g., mean market demand) which influences the size of their orders to the supplier. If the sum of retailer orders exceeds supplier capacity, the supplier uses a pre-declared rule that maps retailer orders to allocations. A broad class of allocation mechanisms are prone to manipulation by the retailers, as shown by Cachon and Lariviere (1999).

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