Study On Supply Chain Information Sharing With Decision-maker ’s Risk Prefer Ence

Coordination and cooperation between the enterprises in the supply chain are the essence and the assurance of supply chain management, and supply chain coordination is based on the sharing and delivery of high quality information between the participants in the supply chain. Information sharing enables the enterprises to grasp the needs of customers accurately, to understand the supply, inventory, production and so on, so as to reduce the cost, improve customer satisfaction, optimize the overall efficiency of the supply chain, and thereby improve the competitive advantage of the supply chain. Therefore, information sharing is so important in the sense of supply chain coordination that many scholars study on supply chain information sharing from different aspects. But most of the existing researches are confined to risk neutral or risk aversion of the individual participants, and mainly concentrated on single shared information. Study on sharing a variety of information is rarely involved. In consideration of the risk preferences of different enterprises and based on an analysis of demand information and technology information sharing in the supply chain,this paper puts forward enterprises operating model and provides a new perspective and approach,aimed to study for the enterprises in the supply chain information sharing. The paper has the three following contributions:(1)In the reality of management, retailers have the different risk preferences.Some retailers risk seeking and pay more attention to the "high profit" when making decisions(such retailers are called risk seeking decision makers). Some retailers fear of risk and pay more attention to the possibility of "low profit" in the business activities when making decisions(such retailers are called risk averse decision makers). Other retailers are neither pursuing risk, nor afraid of risk, and they focus on the stable income in decision-making(such retailers are called risk neutral decision makers). In view of this situation, a game theory is empolyed to study price policy and information sharing value under uncertain market demand with different risk preferences retailer and the risk neutral supplier and thus provides a theoretical basis and management implications how to make decision in information sharing for different risk preferences of retailers and suppliers.(2) Emergencies that may be encountered in the process of supply chain operation will lead that supplier’s failure to meet the demand of retailer, and retailer’s failure to meet consumer’s demand.In this case, the supplier will pay a penalty to retailer and the retailer’s revenue will be affected, which will bring much risk to the supplier and the retailer.Consequently, the supplier and the retailer are risk averse decision makers. In view of this situation, we analyze how the degree of retailer’s risk preference and the uncertainty of the market information affect the wholesale price, retail price and the information sharing value. The study provides a new perspective and approach for the supply chain of enterprise information.(3) In this case of demand and technical information sharing, we analyze how the degree of technique level information sharing and the uncertainty of the market information affect the supplier and the retailer’s pricing decision, sharing information value in the supply chain with a risk neutral supplier and a risk neutral retailer(risk aversion).