The Optimal Contract Design with Asymmetric Production Cost Disruption Information in a Dual-channel Model of Retailer

doi:10.3969/j.issn.1007-7375.e16-1111

Abstract

Abstract: To investigate the impact of the asymmetric production cost disruption information on the retailer dual-channel supply chain contract, in which the retailer plays the main role in supply chain, the optimal channel strategy under the three situations of no production cost disruption, production cost disruption under the symmetric information and asymmetric information are considered respectively. Based on the consumer choice theory and the principal-agent theory, the influence of cost disruption on supply chain performance under the asymmetric information is analyzed using KKT (Karush-Kuhn-Tucker) condition. It is suggested that the original supply chain strategy is still the optimal choice under certain conditions. In addition, the information privacy of production cost disruption not always brings the loss of the profit of the entire supply chain.

Key words: dual-channel model of retailer, consumer choice theory, production cost disruption, asymmetric information, principal-agent theory, contract design

CLC Number:

F224.3

LIU Tingting, XU Qing. The Optimal Contract Design with Asymmetric Production Cost Disruption Information in a Dual-channel Model of Retailer[J]. Industrial Engineering Journal , 2017, 20(1): 36-43,58.

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