Supply and Demand Conflict in Supply Chain Based on Principal-Agent Theory

Because of inconformity of the information and dissymmetry of the benefits, there exists supply and demand conflict among members in supply chain. Adopting principal-agent theory as the tool, we study a 3- layer supply chain model and analyze the supply and demand conflict in the supply chain. By respectively research the supply and demand conflict of the manufactory-dealer link and the supplier-manufactory link, we open out the formation mechanism of conflict.