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Chinese Journal of Management Science ›› 2021, Vol. 29 ›› Issue (7): 148-159.doi: 10.16381/j.cnki.issn1003-207x.2018.1312

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Revenue Sharing Contract Coordination of Supply Chain Considering Risk and Fairness Dual Preferences

WANG Yong-ming1, YU Xiao-hua1, YIN Hong-li2   

  1. 1. Faculty of Management and Economics, Kunming University of Science & Technology, Kunming 650093, China;
    2. School of Information Science and Technology, Yunnan Normal University, Kunming 650500, China
  • Received:2018-09-13 Revised:2019-05-07 Online:2021-07-20 Published:2021-07-23

Abstract: Based on the existing literature, the expected utility decision model of suppliers and retailers with dual preference behavior is established. Through the derivation, analysis and solution of the model, the influence mechanism of fairness preference and risk aversion on the decision-making of the behavior subject of the supply chain and the coordination of the whole supply chain are discussed in this paper. Then, the model is verified by numerical analysis. In order to promote the coordinated development of supply chain, a strategy of supply chain quality management based on dual behavior preference is proposed.
The research results are as follows:firstly, when both retailers and suppliers have fairness preference and risk aversion, the fairness preference, risk aversion and revenue share of suppliers and retailers must meet certain specific conditions to achieve the coordination of revenue sharing contract. Second, when the retailer's revenue share is larger than that of the supplier, the retailer's optimal order quantity and supply chain system will increase the retailer's fairness preference, reduce or increase the supplier's fairness preference, and reduce or increase the risk aversion of the retailer and supplier. Finally, the influence of the change of market economy parameters on decision making is analyzed. In fact, the decision maker can predict the market trend of the supply chain system based on these conclusions, and adjust relevant parameters in time to maximize the system benefit.

Key words: revenue sharing contract, risk aversion and fair preference, supply chain coordination, conduct supply chain management

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