Study On CVaR Model Of Supply Chain With The Strategies Of Two-time Orders And Two-time Sales

With the rapid development of economic globalization, many kinds risk ofaccidents have occured frequently and the uncertainty of market demand haveenhanced sharply, etc, supply chain risk management has already become a hot topicof enterprises by those factors undoubtedly. Supply chain risk management isalready the guarantee of enterprises to keep up with the times to development steady.This paper focused on the problem of the two-time orders and the two-time sales inthe supply chain risk management which considering the coordination of profits andrisks. The CVaR model is used as the main research method, and combined with theexisting theoretical based on the knowledge of supply chain risk managementand decision-making analysis, to further researched the rational decision makingsfor the two-time orders and the two-time sales.Firstly, we have introduced the two-time orders in selling season in the supplychain which retailers and supplies all have risk aversion characteristics, and assumedthat the case of market demand are stochastic, through the CVaR model to study theoptimal decisions for achieving perfect coordination of the supply chain. First of all,we have got the profit funtions of the retailer, supplier and the whole supply chainand established the CVaR model of them respectively, and have analytical discussedthe optimal pre-season batch purchase for each others; Then, in order to satisfied thecondition for perfect coordination of supply chain, we obtained the supplier’soptimal secondary wholesale price; Finally, a simulation example is given toillustrate the nature of optimal decisions and their changing with parameters.Secondly, we have introduced the two-time orders and the two-time sales inthe newsboy model which with risk characteristics and in the case of random marketdemand, the CVaR model was applied to study the retailer’s optimal decisions. Firstof all, we have got the profit funtion of the retailer and established the CVaR model,and have analyzed the conditions which the retailer’s optimal pre-season order batchto match with under different scopes of risk value; In particular, when the marketdemand meet the uniform distribution, we have proved that the retailer’s CVaR model has the only optimal pre-season order batch within the scope of risk, and gotits expression; Finally, a simulation example is given to illustrate the result and itssensitivity with parameters.