Research On Supply Chain Coordination Considering Retailers' Loss Aversion And Anchoring Effect

The current global economic environment makes the competition among enterprises gradually evolve into the competition among supply chains.Therefore,the coordination of supply chains has increasingly become a hot issue of concern to enterprises and academia.The ordering and pricing problems in supply chain are important factors affecting the operation efficiency of enterprises.The coordinated operation of supply chain has an important impact on improving system performance and profits of each node.However,most of the current studies are based on the assumption of complete rationality or only consider the impact of a single irrational psychology.There are few researchs on the supply chain with multiple irrational psychology.The objective factors such as uncertainty of market demand make decisionmakers show obvious loss aversion preference and rely on historical information for decision-making.Therefore,the study of supply chain under the dual irrational psychology of loss aversion and anchoring effect has great theoretical and practical significance.Firstly,on the basis of classical newsvender problem,the quantity of retailer's ordering was studied by combining the influence of inadequate anchoring adjustment and loss aversion in decision-making behavior.At first,the ordering of retailer with loss aversion and anchoring effect is modeled,and then the relationship between the optimal order quantity and loss aversion coefficient,anchoring coefficient,random error was studied.Finally,all the theorems are verified by numerical analysis,and the joint effects of loss aversion coefficient and anchor coefficient on the order quantity of retailer are analyzed.Secondly,under the buy-back contract,the two-level supply chain coordination problem considering retailer's loss aversion and anchoring effect psychology is established.The relationship between retailer's order quantity and wholesale price and buyback price is analyzed.The effects of loss aversion coefficient,anchoring coefficient and random error on the buyback price are also analyzed.At the same time,the conditions to achieve supply chain coordination and the effect of contract parameters on the expected profits of each node are also analyzed.It is found that the influence of anchoring coefficient on retailer's order quantity is much great than that of loss aversion coefficient.And under low-margin products,the decision-maker's anchoring behavior on historical information can neutralize the deviation of the loss averse newsvendor.In addition,supply chain coordination can be achieved only when the retailer's product profit condition is high-margin,and the profit distribution between the two sides of the supply chain is inclined to the manufacturer with the increase of wholesale and buy-back prices.However,the deepening of irrational psychology will make manufacturers increase the buy-back price,which will reduce the profits of the whole supply chain and increase the cost.