Decision Models For Supply Chain Based On Revenue Sharing Contract Under CVaR

With the development of economic globalization and integration, the competitivemodes have changed in enterprise, the competition in supply chains has been thoughtas the mainstream trend of the future competition. The uncertainty of market demand ismore and more strong,the demand level of customers is higher and higher, the demandstructure is more and more diversify, product cycles are getting shorter. Because theseseries of problems appear, the supply chain management which make win-wincooperation as the core concept is becoming very important. Supply chain managementthrough the coordination of the supply chain members of the collaboration betweenenterprises, so as to promote the interests of the whole supply chain, realize profitsharing and risk sharing.In this paper, the revenue sharing contract is used as coordination contract,conditional value-at-risk is used as tool, supply chain decision-making model isestablished. The correlation coefficients are analyzed, such as revenue sharingcoefficient, stocking factor, the degree of risk aversion of decision maker. TheMATLAB software is used to simulate for numerical validation. The game theory, theconditional value-at-risk, probability and mathematical statistics theory are used.Analysis of supply chain risk return provides the reference basis for decisions. makingof supply chain members.Firstly, a single cycle second order supply chain decision-making model is built,which consists of a single supplier and a single retailer. Centralized supply chain anddecentralized supply chain are analyzed. In the centralized supply chain, if the decisionmaker is too afraid of risks, the sale price will drop substantially, the profit of supplychain will also reduce greatly. If decision maker tends to be risk neutral, higher saleprice will be set to meet the market demand, in order to improve the profit of supplychain. The greater the inventory factor is, the lower the sales price, while the interest ofwhole supply chain increases with the decrease of after the first. In decentralizedsupply chain, the greater the revenue sharing coefficient is, the greater the sale price is.If the retailer is too afraid of risks, the sale price will drop substantially, its profit willalso reduce greatly. If the retailer tends to be risk neutral, sale price will increase. The greater the revenue sharing coefficient is, the higher the profit retailer received, andsupplier’s profit increases firstly then decreases. When the revenue sharing coefficientis0.5, supplier’s profit is highest. In this paper, revenue sharing contract can notcoordination perfectly the decentralized supply chain system. Secondly, a single cyclethird-order supply chain decision-making model is built, which consists of a singlesupplier, a single distributor and a single retailer. In the centralized supply chain,reduce the distributor’s dominance, the supply chain overall income will increase. Indecentralized supply chain, if distributor and retailer is too afraid of risks, their profitswill reduce greatly. The greater the revenue sharing coefficient between distributor andretailer is, the higher the profit retailer received. And The greater the revenue sharingcoefficient between distributor and supplier is, the higher the profits distributor andsupplier received. In this paper, revenue sharing contract can not coordination perfectlythe third-order decentralized supply chain system. Lastly, the using of MATLABsoftware for numerical simulation to draw conclusions.