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Addendum to “Coordination of Supply Chains with Risk-Averse Agents” by Gan, Sethi, and Yan (2004)

In: Supply Chain Coordination under Uncertainty

Author

Listed:
  • Xianghua Gan

    (The Hong Kong Polytechnic University)

  • Suresh P. Sethi

    (The University of Texas at Dallas)

  • Houmin Yan

    (The Chinese University of Hong Kong)

Abstract

In “Coordination of Supply Chains with Risk-Averse Agents” (POMS, Volume 13, 2004), we study the issue of coordination in supply chains involving risk-averse agents, and define a coordinating contract as one that results in a Pareto-optimal solution acceptable to each agent. We then develop coordinating contracts in various cases. In the case where the supplier and the retailer each maximizes his own expected utility, we also show that our contract yields the Nash Bargaining solution. In this addendum, we first review some related works that have appeared since the publication of the paper, and then discuss directions for future research.

Suggested Citation

  • Xianghua Gan & Suresh P. Sethi & Houmin Yan, 2011. "Addendum to “Coordination of Supply Chains with Risk-Averse Agents” by Gan, Sethi, and Yan (2004)," International Handbooks on Information Systems, in: Tsan-Ming Choi & T.C. Edwin Cheng (ed.), Supply Chain Coordination under Uncertainty, pages 33-37, Springer.
  • Handle: RePEc:spr:ihichp:978-3-642-19257-9_2
    DOI: 10.1007/978-3-642-19257-9_2
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    Citations

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    Cited by:

    1. Yoo, Seung Ho, 2014. "Product quality and return policy in a supply chain under risk aversion of a supplier," International Journal of Production Economics, Elsevier, vol. 154(C), pages 146-155.
    2. Zhai, Yue & Zhong, Ray Y. & Huang, George Q., 2018. "Buffer space hedging and coordination in prefabricated construction supply chain management," International Journal of Production Economics, Elsevier, vol. 200(C), pages 192-206.
    3. Wang, Xinyu & Sethi, Suresh P. & Chang, Shuhua, 2022. "Pollution abatement using cap-and-trade in a dynamic supply chain and its coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    4. Liu, Jian & Mantin, Benny & Wang, Haiyan, 2014. "Supply chain coordination with customer returns and refund-dependent demand," International Journal of Production Economics, Elsevier, vol. 148(C), pages 81-89.
    5. Avinadav, Tal & Chernonog, Tatyana & Ben-Zvi, Tal, 2019. "The effect of information superiority on a supply chain of virtual products," International Journal of Production Economics, Elsevier, vol. 216(C), pages 384-397.
    6. Palit, Niladri & Brint, Andrew, 2020. "A win-win supply chain solution using project contracts with bargaining games," Operations Research Perspectives, Elsevier, vol. 7(C).

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