Dual‐Source Procurement Strategies of Emergency Materials Considering Risk Attitudes

Abstract

The uncertainty of emergencies makes the emergency procurement face many risks, so the risk management is particularly important of the emergency procurement. The risk attitude of decision makers will significantly affect the decision‐making of risk management. In this paper, the risk management problem with different risk attitudes of emergency procurement consisting of dual‐source suppliers and the single government is studied, and a government‐led Stackelberg game is used to analyze the risks of each link to establish an emergency procurement model under the option contract, and the optimal decision‐making is obtained. The effects of reserve period, risk avoidance coefficient, and probability of emergency on optimal decision‐making are analyzed with different risk attitude. Moreover, we investigate the coordination of the government‐led supply chain coordination under the risk aversion and risk‐neutral conditions of emergency supply chain participants. The results show that the model can control the risk while reducing the cost of government procurement and ensuring the revenue of suppliers. Finally, the influence of each parameter on the optimization decision is verified by a numerical example.