The Retailer’s Information Sharing Strategy Under Demand And Price Factor Disruptions

With the development of the global market, the competition is not just between companies but also between the supply chains. As a result, more and more members take part in the supply chain, which increases the complexity and information asymmetry of their supply chains. Besides, the occurrence of unexpected events increase the uncertainties of supply chain which may led to demand disruptions to have a negative influence on supply chain members. So it is important for supply chain members to take actions to react those unexpected events.Based on previous studies, this paper formulates decisions models for the retailer under demand and price factor disruptions. Optimal decisions are obtained under different disruptions strength. This paper also analyzes the information sharing strategy of the retailer under demand disruptions. The content of this paper can be divided into two parts:Firstly, this paper studies the problems in a supply with a supplier and a retailer. In this paper, the optimal production quantity and the optimal wholesale price are first derived under the Stackelberg game between the supplier and the retailer without demand disruptions. Then, optimal decisions are obtained respectively under the situation of information asymmetric and information symmetric so that it is helpful for the retailer to choose the optimal information sharing strategy. After considering the production quantity of the manufacturer, we find that the production quantity of the manufacturer is robust.Secondly, we obtain the different information sharing strategy under different disruptions strength through comparing the profit of the retailer. Finally, we analyze the retailer’s information sharing strategy’s impact on the supply chain and the members of the supply chain. We also find that asymmetric information always has a negative effect on the profit of the supply chain.Those results provided in this paper are based on some assumptions, but it is meaningful for the retailer to deal with the demand disruption.