Coordination Of Loss-averse Supply Chains Under Promotion Effort

In recent years,affected by the epidemic,the market environment of enterprises has become worse and worse,and the competition has become more and more fierce.At the same time,the distinct personality of consumers has promoted the increase of demand uncertainty.Major enterprises have begun to actively carry out promotional activities to improve the sales of goods.At the same time,many previous studies of supply chain management believe that channel members are completely rational.In fact,this is contrary to reality.Channel members often have loss preference in decision-making.Therefore,based on the above realistic background,this paper considers the possibility of retailers’ secondary ordering on the basis of one-time ordering,studies the supply chain in which retailers avoid losses and carry out promotional activities,discusses the impact of the hybrid contract of repurchase + cost sharing and revenue sharing + cost sharing on supply chain coordination,and analyzes the relationship between the two hybrid contracts.Firstly,under the traditional newsboy model,the optimal strategy of retailers is obtained;Sensitivity analysis of relevant parameters,such as loss avoidance coefficient,wholesale price,etc;This proves that the traditional wholesale price contract can not achieve the coordination of the supply chain.Then,the mixed contract models of buyback + cost sharing and revenue sharing + cost sharing are designed,and the contract variables are analyzed to prove that the above mixed contract model can adjust the supply chain.The comparative analysis of two kinds of hybrid contracts shows that the contract equivalence can be achieved by satisfying specific conditions.On the basis of one-time order,this paper makes an in-depth analysis of the situation of two-time order,focusing on the influence of production price under normal and emergency order,the proportion of retailers willing to delay payment and other parameters on the retailer’s optimal order quantity and promotion effort level,and compares the results of one-time order and two-time order;It is proved that the two hybrid contracts can not only realize the coordination of supply chain under one order,but also satisfy the situation of two orders;And under the condition of satisfying the specific equation,the equivalence of two hybrid contracts can be realized.Finally,numerical analysis is carried out to verify the accuracy and feasibility of the mathematical model.