Coordinating a Supply Chain with a Loss-Averse Retailer and Effort Dependent Demand
Joint Authors
Source
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-07-23
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Medicine
Information Technology and Computer Science
Abstract EN
This study investigates the channel coordination issue of a supply chain with a risk-neutral manufacturer and a loss-averse retailer facing stochastic demand that is sensitive to sales effort.
Under the loss-averse newsvendor setting, a distribution-free gain/loss-sharing-and-buyback (GLB) contract has been shown to be able to coordinate the supply chain.
However, we find that a GLB contract remains ineffective in managing the supply chain when retailer sales efforts influence the demand.
To effectively coordinate the channel, we propose to combine a GLB contract with sales rebate and penalty (SRP) contract.
In addition, we discover a special class of gain/loss contracts that can coordinate the supply chain and arbitrarily allocate the expected supply chain profit between the manufacturer and the retailer.
We then analyze the effect of loss aversion on the retailer’s decision-making behavior and supply chain performance.
Finally, we perform a numerical study to illustrate the findings and gain additional insights.
American Psychological Association (APA)
Li, Liying& Wang, Yong. 2014. Coordinating a Supply Chain with a Loss-Averse Retailer and Effort Dependent Demand. The Scientific World Journal،Vol. 2014, no. 2014, pp.1-12.
https://search.emarefa.net/detail/BIM-1048803
Modern Language Association (MLA)
Li, Liying& Wang, Yong. Coordinating a Supply Chain with a Loss-Averse Retailer and Effort Dependent Demand. The Scientific World Journal No. 2014 (2014), pp.1-12.
https://search.emarefa.net/detail/BIM-1048803
American Medical Association (AMA)
Li, Liying& Wang, Yong. Coordinating a Supply Chain with a Loss-Averse Retailer and Effort Dependent Demand. The Scientific World Journal. 2014. Vol. 2014, no. 2014, pp.1-12.
https://search.emarefa.net/detail/BIM-1048803
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1048803