Research On Decision-making And Contract Choice Of Newsboy Supply Chain From Behavioral Perspective

Because the demand characteristics of different products(industries)may be different,this paper investigates the following three random demand situations according to the demand characteristics of different products(industries):(1)demand random and the retail price is exogenous;(2)random demand is influenced by effort and the retail price is exogenous;(3)random demand depends on retail price and effort.At the same time,referring to Schweitzer and Cachon,this paper considers four situations of "supplier or retailer behavior preferences" : risk neutral;waste aversion preferences only;stockout aversion aversion preferences only;and stockout aversion preferences and waste aversion preferences at the same time.This paper studies the optimal decision-making problem and contract selection problem for upstream and downstream enterprises in the supply chain based on different stochastic demand cases and behavior preference of the supplier or the retailer.The conclusion not only enriches the relevant theoretical knowledge of supply chain decision-making and contract choice,but also provides new theoretical guidance for supply chain enterprises operating different products(industries)in decision-making and contract choice.The specific research problems of this paper are as follows:1.The optimal decision-making problem of the upstream and downstream enterprise in the supply chain under the behavior preferences of retailer.Firstly,based on different stochastic demand cases,the expected utility function model under retailer(supplier)behavior preference is constructed,and then the Nash equilibrium solution of supply chain is obtained by the backward induction method of game theory.The results reveal the influence of the change of waste aversion and stockout aversion of retailer(supplier)on the decision-making and expected profits of upstream and downstream enterprises in supply chain,as well as the income of consumers.At the same time,it also reveals the size of decision-making and expected profit of upstream and downstream enterprises in supply chain under different behavior preferences,as well as the size of consumer income.2.The contract choice problem of the upstream and downstream enterprises in the supply chain under the retailer's(supplier's)behavioral preferences.As far as wholesale price contract is concerned,revenue sharing contract is widely used in practice as one of the more effective tools to share demand risk.In order to explore the preferences of upstream and downstream enterprises in supply chain with different products(industries)for two kinds of contracts.Therefore,according to the demand characteristics of different products(industries),the random demand function based on the requirements characteristics of different products(industries)is constructed.Furthermore,the expected utility function model based on different contracts and retailer's(supplier's)behavior is established,and the optimal decision-making and expected profit of the upstream and downstream enterprises in the supply chain are obtained.The conclusion reveals the influence of different behavior preference of retailer(supplier)on the contract choice of upstream and downstream enterprises in supply chain.