Supply Chain Decision Model Based On Risk Aversion In Stochastic Environment

With the rapid development of science and technology and the acceleration of economic globalization,market competition is more and more intense.In the fierce market competition,the risk aversion of supply chain members has a great influence on the performance of supply chain,which is significant for practice.Firstly,under the condition of the risk measurement criteria,a supply chain system consisting of one risk-averse retailer and one risk-averse supplier is considered.The optimal order strategy of risk-averse retailer and the optimal production strategy risk-averse supplier in the two production mode are discussed.The influence of the retailer’s risk aversion factor on the retailer’s optimal ordering strategy and the effect of supplier risk aversion factor on the optimal production strategy are analyzed,respectively.Finally,the numerical example is presented to illustrate the model.Then,in this paper,we develop a supply chain model composed of a risk-averse retailer and a risk-averse supplier based on the customer demand strategy and supply chain members’ joint promotion efforts in a stochastic environment.The decision-making behaviors of the risk-averse retailer and the risk-averse supplier under centralized and decentralized system are discussed.How to use the improved combination contract to achieve the perfect coordination of supply chain under decentralized decision-making is also analyzed.Finally,the numerical example is presented to illustrate the model.