Research On Coordination Of Inventory In A Supply Chain With Asymmetric Information

Supply chain management is a new type of management mode, which is relevant to global manufacture and quickly changing customer requirements. To manage supply chain efficiently and optimize its whole efficiency, supply chain members should cooperate with each other under high coordination. So Effective coordination and incentive mechanisms should be built to guarantee risk and profit sharing, to reduce inventory levels and total operational cost, to strengthen information sharing and convenient communications, thus to improve supply chain's competition and its whole performance.Under supply chain management, inventory coordination is an important factor that affects the cooperative relationship and cooperation efficiency between supplier and manufacturer. Centralized decision-making system makes it possible for inventory coordination, while it is hard to be carried out due to independence of the supply chain members, high information processing cost and the model's limitation. So decentralized decision-making system is easier to be accepted. Although information asymmetry and conflicts between members and supply chain object may exist.Based on the researches in home and abroad, the problem of inventory in supply chain and the importance of its coordination are analyzed firstly, moreover, and the conception of inventory coordination in supply chain is explained. Secondly, according to the theory of principal-agent, principal-agent problem in supply chain is discussed and the way —information sharing and mechanism design — to solve it is pointed out; the value of information-sharing is analyzed; meanwhile, the thought and approaches to solve the adverse select and moral hazard problems are analyzed and a general model is described. At last, incentive mechanism are designed , which can make the supply chain coordinated under certain condition, in two-echelon supply chain with one supplier and one retailer which the retailer's cost information are asymmetric information, numerical example is used to illustrate the correlative conclusions. Based on Suohansheng's...