Journal of Northeastern University ›› 2007, Vol. 28 ›› Issue (8): 1205-1208.DOI: -

• OriginalPaper • Previous Articles     Next Articles

Coordinating supply chain with revenue-sharing contract under asymmetric information

Qiu, Ruo-Zhen (1); Huang, Xiao-Yuan (1)   

  1. (1) School of Business Administration, Northeastern University, Shenyang 110004, China
  • Received:2013-06-24 Revised:2013-06-24 Online:2007-08-15 Published:2013-06-24
  • Contact: Qiu, R.-Z.
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Abstract: The problem how to coordinate the supply chain with revenue-sharing contract under asymmetric information is studied, with a new model developed relevantly. In this model, the supplier as the leader has the decision-making right for wholesale price and revenue-sharing proportion, while the retailer as the follower has just the right to conceal the information on marginal cost and determine the ordering quantity. Discusses the supplier's optimal revenue-sharing strategy in case the retailer conceals the marginal cost, with a comparative analysis made under symmetrical information at the same time. A numerical simulation is done and the result shows that the supplier's optimal revenue-sharing strategy to spur retailer will pay a price for the unobservability of retailer's private information and reduce his/her profit, while the retailer can gain from that.

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