Study on the Supply Chain Coordination of Perishable Items Based on Double Auction

Supply chain coordination of perishable products of random lifetime under symmetric and bilateral asymmetric information is studied.The coordination mechanism used in this paper is trade credit with which the vendor can entice the buyer to enlarge his order size and thus achieve supply chain coordination.When the information is symmetric,the range of the trade credit's length is derived by analyzing individual constraint of the buyer and the vendor.While when the information about the firms' capital costs is bilateral asymmetric,double auction model is used to get the firms' optimal strategies and the realized length of the trade credit.Finally,extensive numerical study is proposed to demonstrate the conclusions.