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The steam coal supply chain has the problem that the member’s inventory level cannot change with the market demand. The main reason is that market demand information has not been shared in the supply chain members. This paper considers the steam coal supply chain which consists of one coal manufacturer and one fire power plant, with the assumption that the steam coal demand follows a seasonal autoregressive moving average process, including marketing actions that cannot be deduced form the other parameters of the demand process. We compare the optimal inventory level of the steam coal manufacturer and the power plant in two scenarios and analyses the reasons that influence the value of the information sharing in the steam coal supply chain.
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