Research on supply chain coordination strategies under asymmetric information

Abstract

The coordination problem of a supply chain with one supplier and one retailer is analyzed under the condition that the cost information of the retailer is asymmetric. A revenue-sharing contract model is established, in the model, the supplier have the decision-making power of wholesale price and revenue sharing ratio, and the retailer have the decision-making power of hiding the information of marginal cost and confirming order quantity and retail price. The coordination mechanism issue of both the centralized supply chain and the decentralized supply chain under symmetric information is analyzed respectively. Meanwhile, based on that the cost information of the retailer is asymmetric, an incentive mechanism is established in order to prevent the retailer from providing false cost information and increase their profit under optimizing the profit of the supply chain.