Coordination Of Supply Chain With Fairness Pref-Erence Based On Option Contract And Rebate And Penalty Contract

In the market environment with the information technology developing rapidly,the competition of companies has evolved into the competition of sup-ply chains.The coordinate of the supply chain with an appropriate contract has become one of the most effective means.However,the most studies are based on the absolute rationality,i.e.,the impact of the behaviors on supply chain co-ordination is ignored.Based on the above situation,this thesis takes the supply chain with a fairness concerned retailer and a fairness neutral supplier as the re-search object.The supply chain system which use the piecewise linear utility function is regards as fairness concern.This thesis studies the influence of fair-ness concern on supply chain coordination based on the option contract,whole-sale price and option contract,and the rebate and penalty contract.(1)Based on the option contract,the coordination of the fairness concern supply chain constituted of a fairness concern retailer and a fairness neutral sup-plier is studied.The optimal ordering strategy based on the utilities of retailer and supply chain system is analyzed.The study shows that the option contract can coordinate the supply chain with appropriate parameters.It provides numer-ical examples to verify the relevant conclusions,and observes that the retailer's expected utility gradually decreased and the supplier's gradually increased with the increasing of the purchase price of options.However with the increasing of the level of fairness concern in the supply chain system which is within a certain range,the retailer's expected utility reduced and the supplier's increased.(2)Based on the wholesale price and options contracts,the coordination of the supply chain with a fairness concern retailer is researched.The optimal order strategies for the retailer and the supply chain system are respectively analyzed by using their utilities as the objective functions.This study shows that the sup-ply chain coordination can be reached by the wholesale price and option contract with properly parameters.The numerical examples are provided to verify the relevant conclusions,and observes that the retailer's expected utility gradually will reduce first and then increase,and the supplier's will increase first and then decrease with the increasing of the level of fairness concern in the supply chain system.(3)Based on the rebate and penalty contract,the coordination of the supply chain with a fairness concern retailer is studied.The supply chain optimization models are established by the expected utility function of the retailer and supply chain system as the objective function respectively.The theory is verified by numerical examples.The study find that,the coordination of the supply chain can be realized through selecting the appropriate parameters.With the increase of the sales target,the retailer's expected utility will reduce and the supplier's expected utility will increase.What's more,the expected utility of the supply chain system is not change.Along with the supply chain system fairness con-cerns degree increase which is within a certain range,the retailer's expected util-ity is reducing and supplier's expected utility is increasing.