Research on credit period contract under the uncertain cost information of retailer

Abstract

Each entity has independent decision right in the supply chain. Incentive for each entity is the main reason for the inefficiency in the system under asymmetric information. Supplier can encourage retailer to declare its real type of selling cost by designation for credit period contract in the two-echelon supply chain. So, individual member reaches win-win, meanwhile, the supply chain whole efficiency is improved. Finally, the supply chain profit is analyzed by a numerical example, then, the supply chain profit is compared in the case of different parameters.