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Service decision and coordination contracts of supply chain with mean-CVaR retailer. (Chinese. English summary) Zbl 1474.90035

Summary: In this paper, we study the supply chain joint decision of sale price, product quality and service level when the retailer is risk preference. Retailer’s risk preference can be characterized by the mean-CVaR criteria, which include risk aversion, risk neutrality, risk pursuing and loss avoidance. Firstly, we get the optimal decision and optimal profit (expected utility) under the centralized system and decentralized system in which service is provided by manufacturer (model one) and retailer (model two) separately. Secondly, the results show that the supply chain can be coordinated under the cost-sharing contract when the retailer is risk averse. Thirdly, comparing the optimal profit (expected utility) after coordination of model one and model two, we find that providing service has no effect on the manufacturer’s profit, while the retailer owns more expected utility if it offers service. Finally, numerical examples demonstrate the results.

MSC:

90B05 Inventory, storage, reservoirs
90B50 Management decision making, including multiple objectives
91B41 Contract theory (moral hazard, adverse selection)
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