Abstract: Based on the supplier-leader Stackelberg game, optimal policies for a one-supplier -one-retailer supply chain with asymmetric information when demand and production cost disrupt simultaneously are studied with the assumption of line and nonline demand functions. First, the profit functions of supplier and retailer are given under asymmetric information. Then, the expressions are developed for optimal supply price, optimal retail price, optimal supplier profit, optimal retailer profit and total profit of supply chain. Finally, the some variation tendencies of the supply chain members with two disruptions via numerical simulation are discussed, and the robust of optimal production under some conditions is obtained. The results show that two disruptions have a strong influence on supply chain with asymmetric information.

Key words: supply chain decision, asymmetric information, demand and production cost disruption, profit, robust