Risk-aversion Supply Chain Price Decisions Under Market Demand Uncertainty

With the improvement of market demand uncertainty, venture investing in new products increased, but under the holding competitive position in the market, but also have to quickly adapt to changing market conditions, the development of products to meet customer needs to capture the market. The existing literature on the decision-making under uncertainty demand supply chain conducted studies that primarily affect the analysis of the product by the uncertainties of the decision of the supply chain, in order to make optimal decisions under conditions of uncertainty. But it is worth noting that the product is in the market for different stages of life, the product of a different degree of uncertainty, while the contents of the different stages of decision-makers focus on different, product introduction phase in order to promote their products, advertising costs, service levels Policy makers must focus attention, and product maturity, establish a good corporate image, enhance customer loyalty is the key enterprises must be considered, and therefore the establishment of enterprise product recovery mechanism, establish a green corporate image in increasing environmental awareness is a modern effective means. In the past, most of the literature in the risk-neutral assumption study of decision-making behavior of the supply chain, but in reality policymakers have different risk preferences, under the same ambient conditions,decision-makers to make decisions certainly because of their different attitudes towards risk aversion bias, and therefore the analysis of the supply chain process of optimal decision must be taken into account the risk preferences of decision makers.This paper introduces the product life cycle, expected utility and other related Stackelberg game theory, closed-loop supply chain decisions, demand uncertainty of decision-making and product introductions and other issues related literature reviewed analysis; for different stages of life cycle of products not certainty distinguish that product introduction is higher than the maturity of the demand uncertainty, and because the decision-makers affected by their behavior characteristics and external factors, the risk appetite is different, it is assumed that improved risk-neutral decision maker is risk averse, in Based on this, deterministic equivalence principle to construct a more realistic utility function, decision-making model to establish Stackelberg leading manufacturer of optimal supply chain, research products different stages of the life cycle ofuncertainty and risk appetite makers impact on supply chain optimal decision.