Exploring the Systemic Impact of External Supply Uncertainty on the Benefits of Demand Information Sharing: A System Dynamics Approach

Effective collaboration through demand information sharing is essential for supply chain performance. However, growing system complexity often hinders equal information access among firms. This study employs system dynamics models to compare scenarios with and without information sharing, investigating how various types of external supply uncertainties dynamically impact the effectiveness of demand information sharing. By analysing dynamic behaviours within a partially asymmetric information structure, the study reveals how various forms of uncertainty such as lead time volatility, supply variability and capacity fluctuations amplify performance degradation, including the bullwhip effect, inventory level and stockout rate. These findings provide structural and behavioural insights into the limits of information sharing and offer managerial implications for enhancing supply chain resilience. This study contributes to systems thinking by revealing how uncertainty and decision‐making structures affect collaboration strategies in supply chains, ultimately guiding the development of more resilient and adaptive supply chain management practices.