Chen, Weichun, Li, Bo, Song, Dongping and Li, Qinghua
(2017)
Decentralized Supply Chain Decisions on Lead Time Quote and Pricing with a Risk-averse Supplier.
MANAGERIAL AND DECISION ECONOMICS, 38 (4).
pp. 565-580.
Text
MDE2016_Chen_Weiting_accepted_20Feb2016.pdf - Author Accepted Manuscript Download (708kB) |
Abstract
<jats:p>We consider a decentralized supply chain containing a risk‐averse supplier and a risk‐neutral retailer with lead time‐sensitive and price‐sensitive demands. A Stackelberg game is employed to model the lead time quote and pricing decision process between the two members under the conditional value‐at‐risk criterion. A unique equilibrium is obtained. Using the corresponding centralized mode as a benchmark, we find that a less risk‐averse supplier is better to cooperate and share risk with the retailer to improve the entire supply chain's efficiency. With a uniformly distributed realized lead time, the impact of the supplier's risk aversion on the decisions can be characterized by a few threshold values of the late delivery penalty cost. In particular, when the unit delay penalty cost exceeds a certain level, a more risk‐averse supplier will counter‐intuitively quote a shorter lead time by risking a higher delay penalty cost. Copyright © 2016 John Wiley & Sons, Ltd.</jats:p>
Item Type: | Article |
---|---|
Depositing User: | Symplectic Admin |
Date Deposited: | 17 Jun 2016 15:25 |
Last Modified: | 31 Oct 2023 01:39 |
DOI: | 10.1002/mde.2804 |
Related URLs: | |
URI: | https://livrepository.liverpool.ac.uk/id/eprint/3001672 |