Abstract
The problem is studied for a class of retailer and supplier with risk aversion in a supply chain. By developing a CVaR model, the optimal decisions of the supply chain are presented, where we consider the management mode of emergency order and random demand of the market status. Firstly, by applying the sub-additivity of CVaR method, the CVaR models of the retailer, supplier and the entire supply chain are established based on negative return. Secondly, aiming at the different scope of the risk value of enterprise, the optimal pre-season ordering quantities of the retailer, supplier and the entire supply chain are discussed. To achieve the supply chain coordination, the retailer's optimal pre-season ordering quantities is consistent with the entire supply chain's, then, the supplier's optimal emergency wholesale price in the selling season is presented. The sensitivity of the optimal emergency wholesale price in the selling season to the parameters is analyzed. Finally, the effectiveness and the change along with the parameters of the optimal decisions of supply chain are illustrated by a numerical example.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
