Production-distribution collaboration in supply chain under asymmetric information

In this paper production-distribution strategies in supply chain under different information conditions are discussed This paper developed manufacturer's and distributor's profit models with the restriction of manufacturer's production capacity. Under complete information condition the production-distribution strategy is a problem of optimization. Under asymmetry information condition, ie the distribution-cost information of distributor is hidden, this problem is a converse selection problem and production-distribution strategy is converted into the problem of optimization control. Applying maximum principle in this paper, the production-distribution solution is deduced In this paper simulation is done.