Research On Return Contract Coordination In Supply Chain Under Asymmetric Information

Supply chain network structure is constituted by different enterprises ororganizations, and between members, there is a certain conflict of interest, resultingin the case of asymmetric information often exists. Thus, under asymmetricinformation, what strategies to make a reasonable distribution of income between themember enterprises of the supply chain is a key issue in supply chain managementneed to be resolved.This article has taken the second-level supply chain buy-back contract modelwhich under the price flexibility influencing market demand as the object ofstudy,discussing the buy-back contract to the second-level supply chain’scoordinated question under asymmetrical information environment .The essayintroduced present situation about the supply chain coordinated at home andabroad ,then proposed the main content and technologies routes ;It also elaboratedthe buy-back contract of the supply chain theory under asymmetric information andthe supply chain coordination theory as well as the supply chain contractcoordination theory and so on.The essay analyzed the expectation profit model undercoordination control without decentralized and centralized control,then designingthe buy-back contract coordinated model which based on the price flexibilityinfluencing the market demand under asymmetric information ;Combined with theprinciple ,it designed the buy-back contract coordination model based on theinfluence which the market demand is affected by price elasticity under asymmetricinformation.Finally, a numerical example is used to validate the feasibility of modeland validity of the algorithm. Studies have shown that the symmetry of the costinformation, the buy-back coordination contract is not only able to achieve optimalprofits between node enterprises, supply chain systems to achieve profitmaximization; However, in the cost of asymmetric information, only through thedesign contract parameters to constrain the downstream node enterprises toaccurately reflect the true cost information, and willing to accept a contractconsistent response strategy in order to achieve cooperation between the members ofthe optimization.The purpose of this paper is designed to provide some basic theoreticalguidance and reference for the supply chain coordination and management, whichbased on market demand influenced by the price elasticity under asymmetric information .Through balancing of each node of supply chain enterprise’s interests,itimproved operational efficiency and market competitiveness of the supply chainsystem.