Supply chain coordination with CVaR criterion

Supply chain coordination with CVaR criterion

0.00 Avg rating0 Votes
Article ID: iaor200962779
Country: Singapore
Volume: 26
Issue: 1
Start Page Number: 135
End Page Number: 160
Publication Date: Feb 2009
Journal: Asia-Pacific Journal of Operational Research
Authors: , , ,
Abstract:

We study the coordination of supply chains with a risk-neutral supplier and a risk-averse retailer. Different from the downside risk setting, in a conditional value-at-risk (CVaR) framework, we show that the supply chain can be coordinated with the revenue-sharing, buy-back, two-part tariff and quantity flexibility contracts. Furthermore the revenue-sharing contracts are still equivalent to the buy-back contracts when the retail price is fixed. At the same time, it is shown that the risk-averse retailer of the coordinated supply chain can increase its profit by raising its risk-averse degree under mild conditions.

Reviews

Required fields are marked *. Your email address will not be published.