Supply Chain Coordination Based On Return Contact With Information Asymmetry

Nowadays, the competition of seasonal or fashion consumer products’ market is fierce,these products typically have shorter sales period, and in the sales period there is a lot ofuncertainty. Put the vulnerability of the supply chain of seasonal or fashion products intothe range of supply chain uncertainty. Supply chain coordination theory and supply chainresilience theory which is developing recently are methods which can effectively deal withthe supply chain uncertainty, the former can effectively resolve the internal conflicts of thesupply chain, making the supply chain coordinated. The latter can effectively prevent andmitigate supply chain disruptions. Start the research from the view of supply chaincoordination, analyses the present research of the supply chain uncertainty.Build supply chain model considering the characteristics of seasonal or fashionconsumer products. Due to the short sales season, the demand in the sales season has agreat impact on the supply chain’s profit, the demand information asymmetry betweensupply chain members and decision conflicts require the supply chain coordination, returncontract as a kind of coordination contract can effectively coordinate such supply chain,and optimize the supply chain’s profit.For the fashion consumer products’ supply chain, we assume that the supply chain isan assembly newsvendor supply chain and consists of complementary suppliers and anassembler, the product has residual value, and the price has no impact on demand.Suppliers give the return contracts which could overcome asymmetric information, thecontracts should make sure that the retailer’s optimal order quantity is equal to the supplychain’s optimal order quantity which is in the information symmetry case. Finally, throughan example, we illustrate that the contract is reasonable, as it can successfully motivate theretailer to select a sub-contract in accordance with the real demand, suppliers’ contracts canovercome information asymmetry successfully.For the seasonal products’ supply chain, we assume that the supply chain isdecentralized and consists of one supplier and one retailer. The product has no residual value, price has impact on demand. Build model when suppliers provide return contractsand don’t provide returns contracts respectively. Finally, through an case analysis, showthe decision-making process for decision-makers.