The Analysis Of Moral Hazard In Supply Chain

Supply Chain Management and Supply Chain are the hot issue in management. Many scholars study that from different angles, and draw lots of valuable conclusions and theories. But most of those are made based on symmetric information. That is, when the author is studying a supply chain, he usually supposes the information that every enterprise has is symmetric. The variables and the conditions of those the enterprise makes decisions based on are known by others. Every enterprise doesn't have own hidden information. If a member of a supply chain wants to use its private information to maximize his income. its behavior will be known by other members, then its fate is to be kicked out of the supply chain. But in fact those conditions hardly exist in reality. My thesis mainly analyzes supply chain and supply chain management based on asymmetric information, pays more attention to analyze how moral hazard affects supply chain and supply chain management, compare the Supplier's and the buyer's decisions'variety being affected by moral hazard. And in the end give a solution to deal with how to improve the whole supply chain's Efficiency with moral hazard existed. At the same time I analyze whip effect and how it affects supply chain's efficiency and I think the key to solve this problem is how to arrange the principalship.