Research On The Impact Of Risk Preference On Supplier Selection

With the development of economic globalization, in order to maintain core competitiveness in the increasingly competitive market and get the best economic efficiency, the production of the enterprises business scope gradually expand from domestic to global. To research the supply chain management has theoretical and practical importance for enterprise quickly enter the international market and improve the viability and competitiveness in the international market. In order to adapt to the development of supply chain management, supplier as the beginning of the supply chain, and its pros and cons largely affected the operation of the enterprise. Therefore, the choice of suppliers has the crucial influence on the development of enterprises. With the improvement of market response speed requirements as well as natural and economic environment of frequent changes, variation of the risk appetite of the supplier have become a common phenomenon.Nowadays, supply chain risk management based on preference has become increasingly get attention and there has been a wealth of research results. But the current focus on supply chain contract, order decisions and purchasing based on preference. It is still a lack of research on the supplier selection.In view of this, considering the suppliers’ risk preference, the paper explore the effect of preference to supplier selection. First, supplier’s enterprise characteristics effect the supplier’s risk preference, the supplier’s risk preference effect supplier’s decision and behavior, supplier’s behavior effect supplier selection. Second, this paper set up a computational experiment model based on Multi-Agent method and Eclipse platform, and simulated the behavior of suppliers at different risk preferences, and designed the competition mechanism of three supplier portfolios with different risk preference and the change of retailer’s purchase price, inventory and profit. The result shows that risk preference has regular influence to supplier selection. Finally, this paper propose the supplier management strategy based on risk preference-establish the cooperative risk preference management system. The specific means is: clear the risk preference positioning, establish risk preference description and coordination. At the same time, it is pointed out the challenge and difficulty to establish the cooperative risk preference management system.