Risk-Averse Newsvendor's Model And Supply Chain Coordination With Inventory-Dependent-Demand

At present,with the increasing fierce competition of demand market,businesses are trying to stimulate consumer demand through a variety of means.By means of increasing the amount of goods in order to promote the increase in consumers' demand which is an important way accepted by businessmen.Such a phenomenon has abstracted widespread attention in the academic community.Meanwhile,under the environment of fierce market competition,businessmen pay more attention to the risk control system for enterprises,and kept cautious in cooperation with the upstream and downstream enterprises,further risk control management has become an assignable part for entrepreneurs.However,in current researches on supply chain management,studies on the inventory-dependent-demand often ignore the risk attitude of members in the supply chain system.Therefore,this paper points out the importance and the theoretical and practical significance of the research on risk-averse newsboy model with inventory-dependent-demand based on the analysis results of previous researches.In this paper,those single-period perishable goods are treated as the research object,and consumers' demand are made up of two parts: one is the demand affected by the inventory called inventory-dependent-demand;another is the random demand which is independent on the level of inventory,and then construct the linear model and polynomial model with stock-dependent-demand,which of those expand the classical newsboy in demand information.At the same time,combined with the risk attitude of decision maker,the improved newsboy model is constructed.In the improved newsboy model,this paper studies the retailer's optimal ordering strategy and the effect of inventory-dependent-demand and risk-aversion attitude on the optimal order quantity.In addition,the improved newsboy model established in this paper as the risk-averse retailer and a risk-neural supplier form the supply chain,our aim is to find coordination mechanisms which can optimize the supply chain.Results show if there is no shortage penalty cost,the risk-averse newsboy's optimal order quantity under inventory-dependent-demand decrease in a risk aversion,and increase in inventory-dependent-demand.Moreover,a conclusion that the whole-sale price contract cannot come true the supply chain coordination but the reasonable buy-back contract or revenue sharing contract does is found.