Balanced Supply Chain Networks With Loss Aversion Retailers

As we all know,supply chain network has become the main body of the social economic activities. With the rapid development of economy and society, consumer demand is more personalized, and the updated speed of products is increasing. Finally, the volatility of market demand is bigger. However, facing the uncertain market demand, network members often show the loss-averse behavior. Therefore, we will incorporate the loss-averse behavior into the network equilibrium model, and develop network equilibrium problem. The main contents are summarized as follows:1) The loss-averse behavior is incorporated into the network equilibrium model. In detail, under the stochastic demand, the network equilibrium problem, of which loss-averse retailers’shortage cost was involved and was not involved, are respectively examined. Then the loss-averse behavior is modeled by piecewise-linear function, and the optimal behaviors of network members were described by the variational inequality. Eventually, the network equilibrium model is given.2) The single channel is extended to the dual channels that consisit of traditional channel and e-commerce channel. In turn, the dual-channel network equilibrium with loss-averse retailers is examined.3) The network equilibrium model with loss-averse retailers under fuzzy demand is established. The impacts of loss-averse coefficient and fuzzy demand on the optimal behaviors and network members are illustrated by numerical example.