Title: Supply Chain Coordination with Profit Sharing Contract under Risk-Aversion Assumption
Abstract: This paper studies a manufacturer-dominated two-level supply chain both with risk-aversion preference by exploring the use of profit sharing contract for coordinating supply chains under the mean-variance (MV) decision framework. It is found that there exists a unique equilibrium of the Stackelberg game with profit sharing contract in the decentralized case. A numerical analysis indicates that the channel coordination is imposible in decentralization, there exisits supply chain efficiency loss under the risk-aversion assumption, the more risk-averse of the member, the less efficiency.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot