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Research On Ordering Strategy Of Loss-Averse Retailer

Posted on:2012-11-30Degree:MasterType:Thesis
Country:ChinaCandidate:J F QiaoFull Text:PDF
GTID:2219330338967082Subject:Management Science and Engineering
Abstract/Summary:
Supply chain is consisted by a number of participants, in most circumstances, those participants are in a decentralized supply chain. They pay more attention to the maximization of self-interest. Retailer in supply chain is in the transitional position. In order to pursuit the maximal interest, they have to face with many factors. Therefore, how to formulate the optimal quantity of order is the key point.The current research about ordering strategy of retailer on supply chain generally assumes that the retailer is risk neutral. But in reality, requirements of retailers are uncertain, and they are loss-averse when sales are similar to the fashion products.This paper mainly discussed the order strategy on supply chain when retailers are in the neutral-risk or loss-averse situation. This study follows by:Firstly, it builds a two-echelon supply chain analysis model including a single risk-neutral supplier and a single loss-averse retailer. Discussed and contrasted the order strategy of the retailers in centralization and decentralization strategy decisions. It also build a model including a single risk-neutral supplier and two single risk-neutral retailers in order to analyze the order quantity of retailers how to impact the order quantity of the entire supply chain.Secondly, it research the order strategy of the loss-averse retailer in the model which containing a single risk-neutral supplier and a single loss-averse retailer, and analyze final impact from the supply chain which include a single risk-neutral supplier and two loss-averse retailers on the whole order quantity.At last, it analyzes the impact from strategic customer on the sales strategies and the optimal order quantity of retailer. Besides the model including a single risk-neutral retailer and a strategic customer, it also discussed the order strategy for the loss-averse retailer facing with a strategic customer, set up a model which lead to the optimal order quantity.In the meanwhile, it making a analysis the impact from loss averse to the order quantity of retailer and the sale strategy of retailer.
Keywords/Search Tags:Supply chain coordination, Loss-averse, Strategic customer, Ordering strategy
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