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information regarding their capacity so that assemblers can decide how much to
procure from a particular supplier. The combined efficiency as a goal can also provide
them long term benefits such as, assured supply/demand in times of severe market
conditions. Assemblers and suppliers can reach an unwritten agreement backed up by
desire for mutual benefits and fair trading or mat sign legally binding contracts. This
way, the supply chain will behave as a unit and decisions taken would be optimal for
both the suppliers and assemblers. Also, due to information sharing, assemblers will
have enough components to satisfy the market demand and the inventory levels at
suppliers will also be low, implying higher overall revenues.