Research on supply chain disruption coordination mechanisms under algebraic demand and asymmetric information

This paper studies the optimal decisions of a supply chain involving one supplier and one retailer with asymmetric information after the retailer´s cost was disruption. We consider two scenarios: coordination mechanism under asymmetric information in a regular scenario and in an irregular scenario (with retailer´s cost disruption). Our research shows that, it is optimal for the supply chain to keep the original coordination mechanism if the retailer´s cost change is sufficiently small. Decisions must be remade if retailer´s cost change is larger. We illustrate the results by numerical analysis.