Supply Chain Coordination Research Of Heterogeneous Preferences For Retailers

With the development of economic globalization, market competition is becoming more and more fiercer.The competition exist among supply chains, which calls one's attention to the supply chain management, rather then each one of the enterprises.Not only needs meet each one of enterprise demands, but also the supply chain management make the performance better and service competitive though cooperation among enterprises.Consequently, there are high uncertainties, which make supply chains in risk, exist in supply chains external and internal market environment.Due to the differences between the attitude and behavior of the decision-makers under the condition of the risk and changes with the changeable environment.Based on supply chain coordination, this paper research the problems of the best decision and coordination by using heterogeneous preference theory as the breakthrough point.First of all, this paper has carried on the review and summary with the development of supply chain contract coordination and heterogeneous preferences supply chain coordination.Secondly, the relevant theories of supply chain coordination and the prospect theory and maximum attenuation function theory have been analyzed, by using heterogeneous preference theory as the breakthrough point,and then has researched the loss aversion retailer's supply chain coordination, mainly analyzes the individual loss averse retailer and one risk neutral supplier of the supply chain, through the establishment of revenue sharing contract to achieve coordination problem in supply chain.Finally, the paper analyzes the supply chain coordination problem of endogenous preference retailers, suppliers through the establishment of revenue sharing contract can also make the supply chain to achieve harmonious state.Researches have those relevant conclusions that endogenous preference retaile's loss aversion coefficient tends to zero is equivalent to the risk neutral retailer and the retailer's optimal order quantity decreases with the enhancement of the loss aversion coefficient and wholesale prices, increases with raising revenue sharing coefficient.Moreover, the study finds that the supply chain can achieve the state of coordination with revenue sharing contract and get the range of parameters in the contract.