Study of Supply Chain Contract Design under Uncertain Demand

Under the perspective of distributor as principle, this paper set up a basic model to study the principle-agent problem between distributor and manufactures in a supply chain with the condition of stochastic demand and asymmetric information. It is fund that asymmetric information damages the distributor´s expected profit, but by method of changing some specific supply chain contract parameters, the distributor can effectively screen signals and optimize it´s profit. At the end, the effectiveness of the model was validated by a simple case simulation.