Journal article
Supply Chain Coordination with a Risk-Averse Retailer and a Combined Buy-Back and Revenue Sharing Contract
Asia-Pacific journal of operational research, v 36(5), p1950028
01 Oct 2019
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Abstract
This paper investigates the ability of a combined buy-back (BB) and revenue sharing (RS) contract to improve the efficiency of a supply chain involving a risk-neutral supplier and a risk-averse retailer facing stochastic demand. We show that the combined contract can coordinate the supply chain under mild conditions. Further, the effects of risk aversion and contract. parameters on the agents' decision-making are analyzed when the retailer's risk aversion is modeled by the conditional value-at-risk (CVaR) criterion. In contrast to individual BB and RS contracts, the combined contract is able to mitigate the effect of risk-aversion and allow the supplier to obtain higher expected profit. Moreover, situations exist where the combined contract can coordinate the supply chain when neither the BB nor the RS contract. can coordinate it. Numerical experiments conducted further confirm the analytical results derived.
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Details
- Title
- Supply Chain Coordination with a Risk-Averse Retailer and a Combined Buy-Back and Revenue Sharing Contract
- Creators
- Han Zhao - Tsinghua UniversityShiji Song - Tsinghua UniversityYuli Zhang - Beijing Institute of TechnologyJatinder N. D. Gupta - University of Alabama in HuntsvilleAnna G. Devlin - Drexel UniversityRaymond Chiong - University of Newcastle Australia
- Publication Details
- Asia-Pacific journal of operational research, v 36(5), p1950028
- Publisher
- World Scientific
- Number of pages
- 23
- Grant note
- 2018607202007 / DongGuan Innovative Research Team Program U1660202; 71871023; 61503211 / National Natural Science Foundation of China; National Natural Science Foundation of China (NSFC) 17BGL140 / National Social Science Fund of China Beijing Institute of Technology Research Fund Program for Young Scholars
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Decision Sciences (and Management Information Systems)
- Web of Science ID
- WOS:000492838100005
- Scopus ID
- 2-s2.0-85072765865
- Other Identifier
- 991019168440704721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Operations Research & Management Science