Abstract: In this paper production strategies in supply chain under different information conditions,specially under asymmetric information condition,are discussed.This paper develops cost and profit function of production storage where producer is principal and stock-keeper is agent.Under asymmetric information condition the individual rationality constraint of producer’s least profit is transformed into quadric form function,and through making the first order condition of stock-keeper’s profit for the parameter of storage cost as state equation and applying maximal principle,production strategy with asymmetric information is enduced.In this paper the difference of production strategies under different information conditions is analyzed and simulation is done.

Key words: supply chain, asymmetric information, principal-agent, production, storage, incentive strategy, maximal principle