Supply Chain Coordination with Contracts under Bilateral Asymmetric Information.

This paper investigates coordination in a supply chain with contracts under bilateral asymmetric information. We study wholesale price, buy-back, revenue share, quantity discount and quantity flexibility contracts. Addressing how to allocate the total supply chain profit between retailer and supplier according to their advantages of information, we establish the bridge, transfer payment scheme, connecting the centralized solution and decentralized solution. In particular, all contracts are shown to coordinate the supply chain under bilateral asymmetric information except the wholesale price contract. Results are illustrated with numerical examples. [ABSTRACT FROM AUTHOR]