A Study On Supply Chain Network Equilibrium Of Retailers With Different Decision Preferences

In face of uncertain economic environment, a key factor that affects the decision makers’ choice is the decision-making preferences of themselves, the decision-making preference plays a very important role in decision making of supply chain managers. In this article, we incorporate decision-making preferences of the decision makers into supply chain network equilibrium, combining with the research results of behavioral sciences, study supply chain network equilibrium issue that composed of multiple retailers and multiple manufacturers.1) Taking the decision-making preferences of retailers in supply chain network into account, we study supply chain network equilibrium issues that the retailers are inventory regret aversion or stockout regret aversion respectively, and construct inventory regret aversion utility function and stockout regret aversion utility function. We illustrate the effect of inventory regret aversion and stockout regret aversion on supply chain network equilibrium with some numerical examples.2) Considering the production capacity constraints of the manufacturers and the price ceiling of the consumer markets comprehensively, we study the supply chain network equilibrium issues that the retailers are inventory regret aversion or stockout regret aversion respectively. Numerical examples are given to analyze the impact of roduction capacity constraints and price ceiling on the supply chain network equilibrium.