Research on supply chain disruption coordination mechanisms under algebraic demand and asymmetric information

This paper studies the optimal decisions of a supply chain involving one supplier and one retailer with asymmetric information after the retailer’s cost was disruption. We consider two scenarios: coordination mechanism under asymmetric information in a regular scenario and in an irregular scenario (with retailer’s cost disruption). Our research shows that, it is optimal for the supply chain to keep the original coordination mechanism if the retailer’s cost change is sufficiently small. Decisions must be remade if retailer’s cost change is larger. We illustrate the results by numerical analysis.