Channel Coordination with a Risk‐Neutral Supplier and a Downside‐Risk‐Averse Retailer
Channel Coordination with a Risk‐Neutral Supplier and a Downside‐Risk‐Averse Retailer
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DOI:
10.1111/j.1937-5956.2005.tb00011.x
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发表时间:
2005-03
影响因子:
5
通讯作者:
X. Gan;S. Sethi;Houmin Yan
中科院分区:
文献类型:
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作者:
X. Gan;S. Sethi;Houmin Yan
We investigate how a supply chain involving a risk‐neutral supplier and a downside‐risk‐averse retailer can be coordinated with a supply contract. We show that the standard buy‐back or revenue‐sharing contracts may not coordinate such a channel. Using a definition of coordination of supply chains proposed earlier by the authors, we design a risk‐sharing contract that offers the desired downside protection to the retailer, provides respective reservation profits to the agents, and accomplishes channel coordination.