IDEAS home Printed from https://ideas.repec.org/a/wsi/apjorx/v26y2009i01ns0217595909002109.html
   My bibliography  Save this article

SUPPLY CHAIN COORDINATION WITH CVaR CRITERION

Author

Listed:
  • LEI YANG

    (School of Economics and Commerce, South China University of Technology, Guangzhou, 510006, P. R. China;
    School of Economics and Management, Tsinghua University, Beijing 100084, P. R. China)

  • MINGHUI XU

    (School of Economics and Management, Wuhan University, Wuhan 430072, Hubei, P. R. China)

  • GANG YU

    (Department of Management Science and Information Systems, University of Texas, Austin, Texas 78712, USA)

  • HANQIN ZHANG

    (Academy of Mathematics and Systems Science, The Chinese Academy of Sciences, Beijing 100080, P. R. China)

Abstract

We study the coordination of supply chains with a risk-neutral supplier and a risk-averse retailer. Different from the downside risk setting, in a conditional value-at-risk (CVaR) framework, we show that the supply chain can be coordinated with the revenue-sharing, buy-back, two-part tariff and quantity flexibility contracts. Furthermore the revenue-sharing contracts are still equivalent to the buy-back contracts when the retail price is fixed. At the same time, it is shown that the risk-averse retailer of the coordinated supply chain can increase its profit by raising its risk-averse degree under mild conditions.

Suggested Citation

  • Lei Yang & Minghui Xu & Gang Yu & Hanqin Zhang, 2009. "SUPPLY CHAIN COORDINATION WITH CVaR CRITERION," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 26(01), pages 135-160.
    • Handle: RePEc:wsi:apjorx:v:26:y:2009:i:01:n:s0217595909002109
    DOI: 10.1142/S0217595909002109
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217595909002109
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217595909002109?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jörnsten, Kurt & Lise Nonås, Sigrid & Sandal, Leif & Ubøe, Jan, 2012. "Transfer of risk in the newsvendor model with discrete demand," Omega, Elsevier, vol. 40(3), pages 404-414.
    2. Wei Liu & Han Zhao & Shiji Song & Wenxuan He & Xiaochen Li, 2021. "Coping with Loss Aversion and Risk Management in the Supply Chain Coordination," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    3. Shifeng Han & Xingzhong Xu, 2018. "NEV supply chain coordination and sustainability considering sales effort and risk aversion under the CVaR criterion," PLOS ONE, Public Library of Science, vol. 13(6), pages 1-39, June.
    4. Xu, Xinsheng & Ji, Ping & Sang, Shuming, 2023. "Supply option purchasing decisions via mismatch cost minimization," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 210(C), pages 260-280.
    5. Chunlin Luo & Xin Tian & Xiaobing Mao & Qiang Cai, 2018. "Coordinating Supply Chain with Buy-Back Contracts in the Presence of Risk Aversion," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(02), pages 1-19, April.
    6. Weisheng Deng & Lu Liu, 2019. "Comparison of Carbon Emission Reduction Modes: Impacts of Capital Constraint and Risk Aversion," Sustainability, MDPI, vol. 11(6), pages 1-30, March.
    7. Wang, Daao & Dimitrov, Stanko & Jian, Lirong, 2020. "Optimal inventory decisions for a risk-averse retailer when offering layaway," European Journal of Operational Research, Elsevier, vol. 284(1), pages 108-120.
    8. Fan, Yinghua & Feng, Yi & Shou, Yongyi, 2020. "A risk-averse and buyer-led supply chain under option contract: CVaR minimization and channel coordination," International Journal of Production Economics, Elsevier, vol. 219(C), pages 66-81.
    9. Raza, Syed Asif, 2018. "Supply chain coordination under a revenue-sharing contract with corporate social responsibility and partial demand information," International Journal of Production Economics, Elsevier, vol. 205(C), pages 1-14.
    10. Qiu, Ruozhen & Shang, Jennifer & Huang, Xiaoyuan, 2014. "Robust inventory decision under distribution uncertainty: A CVaR-based optimization approach," International Journal of Production Economics, Elsevier, vol. 153(C), pages 13-23.
    11. Belleh Fontem & Megan Price, 2021. "Joint client selection and contract design for a risk-averse commodity broker in a two-echelon supply chain," Annals of Operations Research, Springer, vol. 307(1), pages 111-138, December.
    12. Han Zhao & Shiji Song & Yuli Zhang & Jatinder N. D. Gupta & Anna G. Devlin & Raymond Chiong, 2019. "Supply Chain Coordination with a Risk-Averse Retailer and a Combined Buy-Back and Revenue Sharing Contract," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(05), pages 1-23, October.
    13. Han Zhao & Hui Wang & Wei Liu & Shiji Song & Yu Liao, 2021. "Supply Chain Coordination with a Risk-Averse Retailer and the Call Option Contract in the Presence of a Service Requirement," Mathematics, MDPI, vol. 9(7), pages 1-19, April.
    14. Wei Liu & Shiji Song & Ying Qiao & Han Zhao, 2020. "Supply Chain Coordination with a Loss-Averse Retailer and Combined Contract," Mathematics, MDPI, vol. 8(4), pages 1-20, April.
    15. Modak, Nikunja Mohan & Kazemi, Nima & Cárdenas-Barrón, Leopoldo Eduardo, 2019. "Investigating structure of a two-echelon closed-loop supply chain using social work donation as a Corporate Social Responsibility practice," International Journal of Production Economics, Elsevier, vol. 207(C), pages 19-33.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:apjorx:v:26:y:2009:i:01:n:s0217595909002109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/apjor/apjor.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.