The impacts of the full returns policy on a supply chain with information asymmetry
In contrast to the existing return policies literature assuming that information is symmetrical between the manufacturer and the retailer, we study the full returns policys impact on supply chains with information asymmetry. We first study the case that the base level of the demand follows a discrete distribution with two states. We find that the retailer benefits from the full returns policy in all circumstances, while the manufacturer and the supply chain are better off under some conditions. We then consider the situation in which the base level of the demand is a type of AR(1) process.
returns policy supply chains information asymmetry information sharing decisions under uncertainty