Contract coordination of emergency supply chain with government participation considering risk aversion of participants

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For governments and nonprofit organizations such as the Red Cross, charity federation, through the contract form emergency relief materials reserve not for profit, but to cope with the future the possibility of natural disasters and public health events, the occurrence of natural disasters and public health events has great uncertainty, which makes the demand for emergency relief supplies have great randomness. On the basis of predecessors’ research, according to the use of options in the theory of supply chain coordination, to build the mathematical model based on option contract, research shows that option contracts can be achieved under the conditional value at risk of emergency relief supply chain coordination, in order to improve the effectiveness of emergency relief supply chain, with the increase of Co option purchase price, the government will increase by option order quantity q**, Q** way to reduce the initial order quantity q reduce material procurement cost; When the option purchase price Co is fixed, the supplier’s risk aversion increases with the decrease of the risk preference coefficient. In this case, the government, as the purchaser, needs to provide a higher option strike price Ce to encourage the supplier to produce according to the optimal output of the supply chain system.