Abstract: In CVaR framework, decision models for supply chain are proposed based on buyback contract and strategic consumer behavior. Decision behaviors of risk-averse members in both centralized and decentralized supply chain are investigated. In addition, the interactions among strategic consumer behavior, members' risk-aversion and buyback contract are discussed by theoretical analysis and numerical study. The main results are as follows: First, the price commitment can become a perfect strategy to reduce the negative impacts of strategic customer behavior when supplier and retailer are both risk-averse. Second, the optimal buyback price is influenced by members' risk-aversion and the optimal ordering quantity increases with the growth of the buyback price under the decentralized supply chain. Third, buyback contract can coordinate the supply chain perfectly if and only if retailer's risk-averse factor equals to supplier's risk-averse factor. Otherwise, the profit cannot be allocated arbitrarily between supply chain members based on buyback contract. Finally, when retailer's risk-averse factor does not equal to supplier's risk-averse factor, retailer's profit-sharing will increases with the rising of consumers' valuation, and the player with lower risk-aversion has to give a part of profit to the one with higher risk-aversion so as to guarantee the implement of the contract.

Key words: strategic consumer behavior, CVaR, buyback contract, risk-aversion, supply chain