Privacy Preserving Supply Chain Quantity Discount Contract Design

2009 
The development and deployment of privary preserving supply chain quantity discount contract design can allow supply chain collaborations to take place without revealing any participant s data to others, reaping the benefits of collaborations while avoiding the drawbacks of privacy information disclosure. First, secure multi-party computation protocols are applied in the joint-ordering policy between a single supplier and a single retailer, the joint-ordering policy can be conducted without disclosing private cost information of any of the other supply chain partners. Secondly, secure multi-party computation protocols are applied in the privacy preserving supply chain quantity discount contract design between a single supplier and a single retailer. The information disclosure analyses of the algorithm show that: the optimal quantity discount of the joint-ordering policy can be conducted without disclosing private cost information of any of the other supply chain partners; the above protocol can be implemented without mediators; the privacy preserving quantity discount algorithm can be mutually verifiable and has solved the problem of asymmetric information.
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