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July  2018, 14(3): 1023-1040. doi: 10.3934/jimo.2017088

## Optimal decisions for a dual-channel supply chain under information asymmetry

 1 Hunan provincial Engineering Research Center of Electric Transportation, and Smart Distributed Network, College of Economics and Management, Changsha University of Science and Technology, Changsha 410114, China 2 Hunan Province Key Laboratory of Logistics Information and Simulation Technology, College of Economics and Trade, Hunan University, Changsha 410079, China 3 Commonwealth Scientific and Industrial Research Organization, Energy Center, Mayfield West, NSW2304, Australia

* Corresponding author: Erbao Cao

Received  February 2016 Revised  May 2017 Published  September 2017

Fund Project: The authors are supported by the National Natural Science Foundation of China under Grants 71420107027,71671061,71331001 and 91547113, the Program for New Century Excellent Talents in University under Grants NCET-13-0181, the Science and Technology Projects of Hunan Province under Grants 2016WK2015 and 2017CT5015.

We discuss the optimal pricing and production decisions in a channel supply chain under symmetric and asymmetric information cases. We compare the optimum policies between the asymmetric information and the full information cases. We analyze the effect of the reseller's cost information on the profits of the partners. We find that information asymmetry is beneficial to the reseller, but is inefficient to the manufacturer and the whole supply chain. The information value increases with uncertainties arising from the reseller's cost structure. The dual-channel supply chain can share information and achieve coordination, if the lump-sum side payment from the manufacturer can make up the loss of the reseller due to sharing information. Finally, the effectiveness of the proposed models is verified by numerical examples.

Citation: Mingyong Lai, Hongzhao Yang, Erbao Cao, Duo Qiu, Jing Qiu. Optimal decisions for a dual-channel supply chain under information asymmetry. Journal of Industrial & Management Optimization, 2018, 14 (3) : 1023-1040. doi: 10.3934/jimo.2017088
##### References:

show all references

##### References:
Variation of prices with $\theta$ under asymmetric information case
Variation of demands with $\theta$ under asymmetric information case
Variation of the manufacturer's profit for various $B$ under asymmetric information case
The optimum policies under full and asymmetric information cases
 $p_1$ $p_2$ $w$ $L_1$ $D_2$ D $\pi_m$ $\pi_r$ $\pi$ Full Information 630 510 185.9 192.793 326.126 518.919 244226 6188 250414 Asymmetric Information 592.771 510 141.225 326.952 212.091 539.043 230462 17799 248261
 $p_1$ $p_2$ $w$ $L_1$ $D_2$ D $\pi_m$ $\pi_r$ $\pi$ Full Information 630 510 185.9 192.793 326.126 518.919 244226 6188 250414 Asymmetric Information 592.771 510 141.225 326.952 212.091 539.043 230462 17799 248261
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