Study On The Equilibrium Decision Of Muti-product Supply Chain Network Considering The Minimum-maximum Regret Value

Pursuit of profit maximization is the most needed effect for each decision maker when making decisions.Therefore,in the supply chain network equilibrium model,a variety of theoretical models are generated to explore how to maximize profits,and the expected utility theory is one of them.The shortcomings are also obvious.The precondition of the expected utility theory is that the decision maker is completely rational,and can accurately judge according to the current behavior and make the optimal choice of profit.Obviously this is inconsistent with the decision-making behavior in real life.In reality,decision-makers often accompany risk factors such as risk aversion,regret avoidance and other psychological factors in decision-making behavior.This paper therefore considers the influence of regret psychological factors on behavior decision-making,and establishes decision-makers who consider regret behaviors to balance supply chain network.The influence of each member and the derivation of the equilibrium conditions of the supply chain network.Finally,combining algorithms and researching numerical examples to analyze the influence of regrettable decision makers on other members of the supply chain network or on their own profits and utility.The main innovations of this article are as follows:(1)a supply chain network equilibrium model is constructed.The network is consisted by multiple competitive manufacturers,retailers and consumer markets under the uncertainty demand.Due to the uncertainty of demand,the retailers always compare the current profit with the maximum profit when the supply is equal to the demand,which may produce the regret or rejoice psychology.Based on the regret theory,the retailers' profit maximization models,and minimax regret value models are established.The equilibrium conditions at all levels of the supply chain network and the entire network are developed through the theory of variational inequalities.Finally,the effect of retailers' regret psychology on the optimal order quantity,optimal profit value is analyzed in numerical examples.(2)Based on the supply chain network equilibrium model of decision-makers with regret behaviors,a number of products are added,and a new multi-product supply chain network equilibrium model for decision makers with regret behavior is proposed,and the decision maker grants different products to different products.Concerned about weights,this article discusses two and four products.Through the final example,it analyzes that different products are given different regrets and weights,so as to observe the influence of decision makers' regrets on the entire decision variables,and for retail sales.The individual product and the overall profit,the effect of utility,and then come to the conclusion.