Coordination of supply chain for fixed lifetime products under asymmetric information

This paper studied a two-echelon supply chain with one distributor and one retailer for fixed-lifetime products. Assuming faced with i.i.d. stochastic demand during each selling period, the retailer places an order from the distributor at the beginning of repeated selling periods. While faced a stream of demand of the retailer, the distributor replenish his inventory at the beginning of his replenishment period. Under asymmetric information of the retailer's salvage, by using some coordination mechanism, it can obtain the optimal ordering policies and the optimal quantity discount contract. At last, the numerical results were given.