Coordination of Supply and Demand Network in the Presence of Reverse Logistics and Asymmetric Information
The paper analyzes the coordination and efficiency of a two-tiers assembly supply and demand system,in which the reverse logistics exist as a result of the sharing of the salvage value of the left-over inventories.In the presence of the reverse logistics and asymmetric information,our research indicates that the traditional revenue-sharing contract cannot effectively coordinate the supply chain.Furthermore,under the sharing contract for the system with competition and signaling,our analysis through establishing the newsvendor model separately for every party of the supply chain implies that the effective coordination can only be achieved through introducing the signaling mechanism and suppliers' competition of the same kind of products simultaneously,plus the incentive for a long-term relationship.Our conclusion is justified through a computational study,and is consistent with the original meaning of supply and demand network.