Research On The Coordination Of A Supply Chain With An Overconfident Retailer Under Two Contracts

With the increase of the uncertainty of market,the competition between supply chains is more and more fierce.The coordination of the supply chain has become the key to improve the competitiveness of companies.In the studies of the traditional supply chains,we assume the members of the supply chain are completely rational.However,due to many factors in our real life,the members often make irrational behaviors,such as overconfidence,risk aversion,fairness concern and so on,and the irrational behaviors cause a certain impact on the whole supply chain,for example,the overconfidence.In this thesis,the coordination of a supply chain with an overconfident retailer under the option contract and the quantity flexibility contract is studied.This thesis takes a two echelon supply chain system with an overconfident retailer and a rational supplier as the research object.The option contract and the quantity flexibility contract are introduced into the supply chain,and the optimal ordering strategy and the coordination of the supply chain are studied under the contracts.Firstly,under the belief demand,the contract models under the decentralized decision mode are established,and the optimal order quantity of the overconfident retailer is solved.Secondly,in the centralized decision mode,the decision maker of the supply chain system has overconfident behavior.The contract model is established under the belief demand,and the optimal order quantity of the supply chain system is solved.Then,in the coordination of supply chain,we compare the optimal quantity under decentralized decision and the optimal order quantity under centralized decision,and the coordination condition is given.The coordination of the supply chain is discussed by the definition.Finally,the numerical examples are given to verify the theoretical results and the influence of overconfidence on the expected profit of retailers and supply chains is discussed.We find out that,the contracts can coordinate the supply chain with the appropriate contract parameters.When the degree of overconfidence is in a certain range,the retailer's overconfidence profit is more than the actual expectation profit,while the supply chain system's overconfidence profit is also more than the actual expectation profit.The performance of the supply chain system will be affected.