Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand

doi:10.1007/s10479-014-1689-0

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	Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand
	Zhao, Yingxue 1; Choi, Tsan-Ming 2; Cheng, T. C. E.3; Wang, Shouyang4
刊名	ANNALS OF OPERATIONS RESEARCH
	2017-10-01
卷号	257 期号:1-2 页码:491-518
关键词	Supply chain management Contract risk Wholesale price contract Stochastic price-dependent demand Risk aversion
ISSN号	0254-5330
DOI	10.1007/s10479-014-1689-0
英文摘要	In supply chain management, it is prevalent to design contract for coordination or proper risk-sharing in the supply chain. However, when a supply chain contract is developed based on the concept of expectation (e.g., expected profit), there is uncertainty risk with respect to the contract value which arises from various uncertainties inherent in the supply chain, such as demand uncertainty, price uncertainty, etc. We call such uncertainty risk associated with the contract value risk since it relates to the true value of the contract. Value risk is obviously an important factor in the design and analysis of a supply chain contract. In addition, individual supply chain agents with different risk preferences will have different risk attitudes towards the contract value risk, which affects their decisions under the contract. Motivated by the above, we conduct in this paper a mean-risk analysis for the commonly adopted wholesale price contracts with a supplier-retailer supply chain facing a stochastic price-dependent downward-sloping demand curve, taking into account contract value risk and the retailer's degree of risk-aversion. Formulating the problem under study as a supplier-led Stackelberg game, we characterize the wholesale price contract model analytically in terms of only the retailer's risk preference structure, and derive all the results in closed-form. This study makes the first attempt to assess the efficiency of wholesale price contracts incorporating contract value risk, and thereby some interesting managerial and academic insights are obtained. Our research provides a new perspective of looking at the performance of a supply chain contract.
资助项目	National Natural Science Foundation of China[71101028] ; National Natural Science Foundation of China[71371052] ; Program for New Century Excellent Talents in University[NCET-13-0733] ; Beijing Natural Science Foundation[9143020] ; Fundamental Research Funds for the Central Universities in UIBE[14JQ02] ; RGC(HK)[PolyU 5424/11H]
WOS研究方向	Operations Research & Management Science
语种	英语
出版者	SPRINGER
WOS记录号	WOS:000413946000021
内容类型	期刊论文
源URL	[http://ir.amss.ac.cn/handle/2S8OKBNM/29108]
专题	系统科学研究所
通讯作者	Choi, Tsan-Ming
作者单位	1.Univ Int Business & Econ, Sch Int Trade & Econ, Beijing 100029, Peoples R China 2.Hong Kong Polytech Univ, Inst Text & Clothing, Kowloon, Hong Kong, Peoples R China 3.Hong Kong Polytech Univ, Dept Logist & Maritime Studies, Kowloon, Hong Kong, Peoples R China 4.Chinese Acad Sci, Acad Math & Syst Sci, Inst Syst Sci, Beijing 100190, Peoples R China
推荐引用方式 GB/T 7714	Zhao, Yingxue,Choi, Tsan-Ming,Cheng, T. C. E.,et al. Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand[J]. ANNALS OF OPERATIONS RESEARCH,2017,257(1-2):491-518.
APA	Zhao, Yingxue,Choi, Tsan-Ming,Cheng, T. C. E.,&Wang, Shouyang.(2017).Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand.ANNALS OF OPERATIONS RESEARCH,257(1-2),491-518.
MLA	Zhao, Yingxue,et al."Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand".ANNALS OF OPERATIONS RESEARCH 257.1-2(2017):491-518.