Coordinating a Supply Chain with Risk-Averse Agents under Demand and Consumer Returns Uncertainty
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-10-28
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
This paper examines the optimal order decision in a supply chain when it faces uncertain demand and uncertain consumer returns.
We build consumer returns model with decision-makers’ risk preference under mean-variance objective framework and discuss supply chain coordination problem under wholesale-price-only policy and the manufacturer’s buyback policy, respectively.
We find that, with wholesale price policy, the supply chain cannot be coordinated whether the supply chain agents are risk-neutral or risk-averse.
However, with buyback policy, the supply chain can be coordinated and the profit of the supply chain can be arbitrarily allocated between the manufacturer and the retailer.
Through numerical examples, we illustrate the impact of stochastic consumer returns and the supply chain agents’ risk attitude on the optimal order decision.
American Psychological Association (APA)
Liu, Jian& He, Yong. 2013. Coordinating a Supply Chain with Risk-Averse Agents under Demand and Consumer Returns Uncertainty. Mathematical Problems in Engineering،Vol. 2013, no. 2013, pp.1-10.
https://search.emarefa.net/detail/BIM-1008943
Modern Language Association (MLA)
Liu, Jian& He, Yong. Coordinating a Supply Chain with Risk-Averse Agents under Demand and Consumer Returns Uncertainty. Mathematical Problems in Engineering No. 2013 (2013), pp.1-10.
https://search.emarefa.net/detail/BIM-1008943
American Medical Association (AMA)
Liu, Jian& He, Yong. Coordinating a Supply Chain with Risk-Averse Agents under Demand and Consumer Returns Uncertainty. Mathematical Problems in Engineering. 2013. Vol. 2013, no. 2013, pp.1-10.
https://search.emarefa.net/detail/BIM-1008943
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1008943