Coordination of Time-Varying Price Supply Chain with Inequity-Averse Retailers. (17th June 2019)

• Record Type: Journal Article
• Authors: Song, Shuanjun; Hu, Sheng
• Other Names: Kalashnikov Vyacheslav Academic Editor.
• Is Part Of: Mathematical problems in engineering. Volume 2019(2019)
• Publication Date: 2019-06-17
• Subjects: Engineering mathematics -- Periodicals; 510.2462
• DOI: 10.1155/2019/6704131
• Languages: English
• ISSNs: 1024-123X

Abstract

Abstract : In order to coordinate time-varying price supply chain with inequity-averse retailers, this paper proposes a cooperative system decision model based on buy-back contract. The model concentratedly takes the market demand, manufacturers' order response time, retailers' inequity aversion, and time-varying price into consideration. Through sensitivity analysis of model parameters, the influence of inequity aversion characteristics of retailers on contract parameters is analyzed by a numerical example. The result reveals that the cooperative system based on buy-back contract can coordinate such supply chains. And it shows that when the retailer has disadvantageous inequity aversion, the buy-back contract is beneficial to the manufacturer; when the retailer has advantageous inequity aversion, the buy-back contract is beneficial to the retailer.