Abstract
We construct dynamic Bertrand-Stackelberg pricing models including two manufacturers and a common retailer in a risk-averse supply chain with the uncertain demand. The risk-averse supply chain follows these strategies: Bertrand game between the two manufacturers and Stackelberg game between the manufacturer and the retailer. We study the effect of the price adjustment speed, the risk preference, and the uncertain demand on the stability of the risk-averse supply chain using bifurcation, power spectrum, attractor, and so forth. It is observed that there exists slip bifurcation when the price adjustment speed across some critical value, the stable region, and total profit of the risk-averse supply chain will increase with increase ofRM1and decrease with increase ofσ. The profit of the supply chain and the two manufacturers will decrease and the weaker (retailer) is a beneficiary when the supply chain is in chaos. The fluctuation in the supply chain can be gradually controlled by the control of the price adjustment speed.
Highlights
With the development of economic globalization, the relationship among the supply chain members becomes more and more complex under the different environment
We study the effect of the price adjustment speed, the risk preference, and the uncertain demand on the stability of the risk-averse supply chain using bifurcation, power spectrum, attractor, and so forth
An enterprise which is involved in the middle of multiple supply chains has all kinds of complicated relationship when the parameter of the upstream and downstream enterprises is changed, such as market uncertainty and risk preference factor; the enterprise’s decision-making behaviors become more complicated and hard to predict
Summary
With the development of economic globalization, the relationship among the supply chain members becomes more and more complex under the different environment. Ma and Feng [13] presented investigation simulations of retailer’s demand and stock; the behaviors of the system exhibited deterministic chaos with consideration of system constraints These literatures researched the dynamic complexity of the supply chain but did not consider the influence of the decision-maker’s risk behaviors on the supply chain management. We will study the dynamic complexity of a risk-averse supply chain with two manufacturers and a common retailer under uncertain demand. Considering the change of parameters in the dynamic risk supply chain, such as the price adjustment speed, risk preference, and uncertain demand, we can study the influence of parameters on the price and stable region of the two manufacturers and retailer. When a manufacturer changes the value of parameter, how to adjust value of parameter and what impact it will have on the other manufacturers and the retailer are the main innovation points of this paper
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
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 call
