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Abstract:
Impacts of risk preference and demand uncertainty on the optimal order quantity and profit in supply chain system with mixture conditional value-at-risk constrain are studied by using stochastic dominance. It is proved that the optimal order quantity and profit of the retailer will decrease while risk preference coefficient increases under the wholesale price contract and revenue sharing contract. The wholesale price contract can coordinate the supply chain system only when the retailer is risk-taking. The supply chain system can also be coordinated by the revenue sharing contract for any risk preference of the retailer. Under the revenue sharing contract, stochastic larger demand leads to higher optimal profit of the retailer; more variable demand leads to less profit of the retailer when risk preference coefficient is larger than or equal to one. ©, 2014, Northeast University. All right reserved.
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Control and Decision
ISSN: 1001-0920
Year: 2014
Issue: 11
Volume: 29
Page: 2011-2017
Cited Count:
WoS CC Cited Count: 0
SCOPUS Cited Count: 1
ESI Highly Cited Papers on the List: 0 Unfold All
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Chinese Cited Count:
30 Days PV: 8
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