Volume 55, Number 2, March-April 2021
|Page(s)||433 - 456|
|Published online||23 March 2021|
Pricing decision and coordination mechanism of dual-channel supply chain dominated by a risk-aversion retailer under demand disruption
School of Economics and Finance, South China University of Technology, Guangzhou 510006, P.R. China
* Corresponding author: email@example.com
Accepted: 25 January 2021
This paper studies a dual-channel supply chain composed of a retailer and a supplier, and discusses the optimal decisions of supply chain participants under decentralized decision-making without and with demand disruption, respectively. By comparing the optimal decisions in the two scenarios, we find that the optimal decision after demand disruption is a linear function of the demand disruption plus optimal decision before demand disruption. Additionally, when the demand disruption is in interval (−ψu2, ψu1), the optimal total production of the supply chain is equal before and after demand disruption. Moreover, the profits of the supply chain members and the value of their recognizing demand disruption are largely affected by the scale of demand disruption. Finally, the results show that the improved revenue-sharing contract can effectively improve the supply chain performance.
Mathematics Subject Classification: 65D18 / 90B50
Key words: Demand disruption / risk averse / dual-channel supply chain / value of recognizing demand disruption / coordination mechanism
© EDP Sciences, ROADEF, SMAI 2021
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