Supply Chain Combined Contract Under Risk-Averse

In supply chain coordination, most corporations adopt the contract mode. The price-offs contract and the buy-back contract are popular policy. But the study of contracts usually discusses only one kind of the contract. So, it's a innovation to study how to use the combined contract with price-offs contract and buy-back contract in supply chain. Simultaneity, most present study of supply chain contracts set up improving the expected-profit or reducing the expect-cost for the best objective. They do not consider the risk predilection of members and suppose the supplier and retailer are risk-neutral. It is not suit the uncertain mark environment. These contracts may not suit the supply chain with risk-averse members. So, it's important to study the supply chain coordination contracts with risk-averse members.This paper analyzes the perception, management mode and coordination process of supply chain. And then, assumes that market demand is uncertain, product is perishable, information is common between supply chain members, considers different risk predilection of members, and explores the combined contract model with price-offs and buy-back of supply chain which has only one supplier and one retailer. The main content is as follows:Firstly, this paper discusses supply chain concept and management mode, and the coordination process with contact. Secondly, it analyses the kind of risk and three kind of way to measure risk. Thirdly, when supply chain adopt the basic coordination model, this paper separately establishes and analyzes supply chain best quantity, every member's profit and the system profit under decentralization and centralization decision-making, and educes: the order, the integer profit and supplier's profit of decentralization decision-making are smaller than the relevant value of centralization decision-making. Fourthly, when supply chain adopts price-offs contract, the system can not reach to coordination. When supply chain adopts buy-back contract, the system can reach to coordination, and the buy-back price is irrespective to demand distributing. When supply chain adopts the combined contract the system can reach to coordination, and wholesale price and buy-back price meet a linear equation with price and cost. At last, this paper discusses three kinds of risk-attitude combinations, and explores models and educes: when supplier and retailer are risk-averse, the combined contract can make supply chain cooperative. But the best order is smaller than that when the supplier and retailer are risk- neutral. According to the risk-averse measure of supplier and retailer, it can get the proportion of the profit. When supplier is risk-aversion and retailer is risk-neutral, or supplier is risk-neutral and retailer is risk-aversion, the combined contract can not make the system reach to coordination.