Supply chain contracting with disruptions under information asymmetry

We investigate supply chain contracting under disruption information asymmetry. This paper differs from the supply chain coordination problem with only one kind of disruptions under full information. We consider the scenarios that demand and production cost are disrupted simultaneously and one kind of the disruption information is asymmetric between the supply chain partners. In each case, using linear contract menus, we present the changes in the original production plan, the wholesale price between the partners and the market price. Under the optimal incentive contracts, we show the impact of asymmetric disruption information on the performance of the supply chain. We find that the production plan of the supplier still has some robustness under information asymmetry. Compared with the case with full information, however, the supply chain suffers some profit loss.