Research On Bi-Level Risk Decision Problem With Cvar Constraints Under Buy-Back Contract

In reality, most of the diversified supply of consumer products which are closely related with our daily lives are oversupply, such as the garment industry and the mobile phone industry. With this market environment, enterprises are no longer pursuit of production, because more production is not necessarily to get higher returns. According to their own orders,They determine their own production. The primary goal of the business is how to survive, how to minimize the risk.However, the supply chain is a multi-link, a complex multi-channel system, in which a particular job may be completed by a single company or jointly several companies. Any business problems are likely to spread and affect other enterprises, affect the normal operation of the entire supply chain, and even lead to rupture and failure of the supply chain. Therefore, supply chain participants realized that the sole objective of profit maximization decisions is inappropriate, they must enhance their own ability to bear risk, on the basis of ensuring the smooth operations of enterprises, and then they could consider the maximization of profits.On the basis of supply chain coordination and supply chain risk management literature review, this article is to study the risk decision-making problems of the two-stage supply chain composed by suppliers and retailers. The main work of this paper is as follows:First, based on the CvaR constraints,this paper establish bi-level risk-dicision model.Then, we take the buy-back strategy in the supply chain contract as the research object, discussing under the different forms of the buy-back strategy, if suppliers and retailers make minimum loss as the decision objective, the suppliers and retailers how to determine the optimal wholesale price and the optimal quantity, to achieve supply chain coordination.