Researches On Supply Chain Coordination Mechanism Based On Asymmetric Retailer's Cost Information

The studied title is come from National Natural Science Foundation Project (grant number: 70471045): supply chain coordination and quantity discount research based on stochastic demand and asymmetric informationWith the increasing competition due to market globalization, to achieve a quick response to rapidly changing customer requirements, supply chain management, a novel management mode, has been receiving more and more attention of managers, consultants and researchers. Amongst various entities and functional units along a supply chain, tight activity coordination pattern is needed to achieve a global performance optimization. The coordination problem has been a major issue in supply chain management research, but now, the most literatures that were published suppose symmetric information to coordinate supply chain. So, the paper constructs quantity discount model of supply chain coordination under the asymmetric retailer's cost information. Details are as follows:Based on introducing the theory of supply chain management and supply chain coordination, Firstly, the paper considers supply chain coordination with constant demand under retailer only knowing about his cost information. In order to make supply chain optimize, the paper designs incentive mechanism that induce retailer to report the true cost by revelation principle and make supply chain coordinate.Secondly, based on supplier and retailer having asymmetric cost information, that is, the supplier knows about the distribution of retailer's cost, but she doesn't know the true cost when she makes decisions, the paper studies the problem of how the supplier uses quantity discount strategy to incentive the retailer cooperating so as to improve the supply chain performance.Finally, under the asymmetric retailer's cost information, the paper considers the pricing decision between supplier and retailer with linear demand, and constructs quantity discount model to improve the supply chain coordination.