CSpace  > 系统科学研究所
Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand
Zhao, Yingxue1; Choi, Tsan-Ming2; Cheng, T. C. E.3; Wang, Shouyang4
2017-10-01
Source PublicationANNALS OF OPERATIONS RESEARCH
ISSN0254-5330
Volume257Issue:1-2Pages:491-518
AbstractIn supply chain management, it is prevalent to design contract for coordination or proper risk-sharing in the supply chain. However, when a supply chain contract is developed based on the concept of expectation (e.g., expected profit), there is uncertainty risk with respect to the contract value which arises from various uncertainties inherent in the supply chain, such as demand uncertainty, price uncertainty, etc. We call such uncertainty risk associated with the contract value risk since it relates to the true value of the contract. Value risk is obviously an important factor in the design and analysis of a supply chain contract. In addition, individual supply chain agents with different risk preferences will have different risk attitudes towards the contract value risk, which affects their decisions under the contract. Motivated by the above, we conduct in this paper a mean-risk analysis for the commonly adopted wholesale price contracts with a supplier-retailer supply chain facing a stochastic price-dependent downward-sloping demand curve, taking into account contract value risk and the retailer's degree of risk-aversion. Formulating the problem under study as a supplier-led Stackelberg game, we characterize the wholesale price contract model analytically in terms of only the retailer's risk preference structure, and derive all the results in closed-form. This study makes the first attempt to assess the efficiency of wholesale price contracts incorporating contract value risk, and thereby some interesting managerial and academic insights are obtained. Our research provides a new perspective of looking at the performance of a supply chain contract.
KeywordSupply chain management Contract risk Wholesale price contract Stochastic price-dependent demand Risk aversion
DOI10.1007/s10479-014-1689-0
Language英语
Funding ProjectNational Natural Science Foundation of China[71101028] ; National Natural Science Foundation of China[71371052] ; Program for New Century Excellent Talents in University[NCET-13-0733] ; Beijing Natural Science Foundation[9143020] ; Fundamental Research Funds for the Central Universities in UIBE[14JQ02] ; RGC(HK)[PolyU 5424/11H]
WOS Research AreaOperations Research & Management Science
WOS SubjectOperations Research & Management Science
WOS IDWOS:000413946000021
PublisherSPRINGER
Citation statistics
Cited Times:4[WOS]   [WOS Record]     [Related Records in WOS]
Document Type期刊论文
Identifierhttp://ir.amss.ac.cn/handle/2S8OKBNM/29109
Collection系统科学研究所
Affiliation1.Univ Int Business & Econ, Sch Int Trade & Econ, Beijing 100029, Peoples R China
2.Hong Kong Polytech Univ, Inst Text & Clothing, Kowloon, Hong Kong, Peoples R China
3.Hong Kong Polytech Univ, Dept Logist & Maritime Studies, Kowloon, Hong Kong, Peoples R China
4.Chinese Acad Sci, Acad Math & Syst Sci, Inst Syst Sci, Beijing 100190, Peoples R China
Recommended Citation
GB/T 7714
Zhao, Yingxue,Choi, Tsan-Ming,Cheng, T. C. E.,et al. Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand[J]. ANNALS OF OPERATIONS RESEARCH,2017,257(1-2):491-518.
APA Zhao, Yingxue,Choi, Tsan-Ming,Cheng, T. C. E.,&Wang, Shouyang.(2017).Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand.ANNALS OF OPERATIONS RESEARCH,257(1-2),491-518.
MLA Zhao, Yingxue,et al."Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand".ANNALS OF OPERATIONS RESEARCH 257.1-2(2017):491-518.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Bookmark
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Zhao, Yingxue]'s Articles
[Choi, Tsan-Ming]'s Articles
[Cheng, T. C. E.]'s Articles
Baidu academic
Similar articles in Baidu academic
[Zhao, Yingxue]'s Articles
[Choi, Tsan-Ming]'s Articles
[Cheng, T. C. E.]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Zhao, Yingxue]'s Articles
[Choi, Tsan-Ming]'s Articles
[Cheng, T. C. E.]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.
 

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.