A Research Of Risk Sharing And Profits Distribution In Retailer Dominating Supply Chain

In the recent years, with the development and changes of economic and society,the retailer’s character in the supply chain has been changed, a big revolutionhappened, the retailer dominating supply chain appeared. In the retailers dominatingsupply chain, each enterprise, the members, whose fundamental purpose is still to getestablished benefits with a certain risk and investment. But with the acceleration ofthe marketing globalization, the increasing uncertainty of supply and demand, ashortening life cycle of products and technology, and a frequently appearance ofnatural disasters and terrorist attacks, which all making the members of the supplychain facing more risk than ever before. And also, with the further cooperation amongthe supply chain members, the supply chain may get more benefits. Therefore, toestablish a reasonable and effective mechanism of the allocation of risks and profitsdistribution among the retailer dominating supply chain members will be helpful forthe supply chain optimization and long-term operation.The paper mainly researched how to make a risk sharing and profits distributionamong retailer dominating supply chain. The research’s purpose is to through thereasonable mathematical model and for using quantitative analysis and qualitativeanalysis to find a risk sharing and profits distribution method in the retailerdominating supply chain. The research was from the supplier’s perspective; in theresearch we provided the supplier a decision-making reference. We proofed thatthrough the allocation of risks and profit distribution among the supply chainmembers, we could strengthen the cooperation between the enterprises, and promotedthe relationship between members, and finally got a win-win result.In the first chapter, we analyzed the thesis research background and practicalsignificance, we summarized and reviewed the related researches and papers, and wealso provided the main content of the paper and the train of thoughts of the research.In the second chapter, we discussed the different of a retailer dominating supplychain risk from a normal supply chain risk, and also the retailer dominated the supplychain risk sources were discussed. In this chapter a further research foundation hadbeen founded.In the third chapter, we established an inventory risk sharing model in a retailerdominated supply chain with a risk aversion supplier. We analyzed the supplier howto make decisions under an elasticity contract. The results of the study showed that, through the designed risk sharing coefficient and the wholesale price, we couldcoordinate the retailers to share supplier’s inventory risk, and got a result which is torealize the supply chain coordination. A retailer dominating supply chain risk sharingmodel based on the risk aversion supplier and the risk sharing mechanism is one ofthe paper’s contribution.In the fourth chapter, we first discussed the advantages and disadvantages of theprofits distribution which using the Shapley value method, and then we developed aprofits distribution method, constructed based on risk aversion supplier and containeda feedback coefficient, in a retailer leading supply chain. We also analyzed thesupplier how to make decisions. The profits distribution method is the paper’s anothercontribution.In the last chapter, we analyzed the supply chain risk sharing and profitsdistribution problems, and discussed some ways to make supply chain coordinationoperation.To ensure the data accuracy and feasibility of the model, we used solvingprograms in the cases which were written in c++language.