Abstract: In this paper we introduce the financial risk control tool,the conditional value-at-risk,to study risk-averse supply chains optimization and coordination mechanism problem.First,for a two-echelon supply chain with a risk-averse supplier and risk-averse retailer,we construct the conditional value-at-risk mo del,the optimal ordering quantity model and the revenue-sharing contract model based on CVaR under ramdom demand.Then,we analyze the model and reveal the impact of risk aversion on supply chains coordination,the optimal ordering quantity and the trade price decisions.Finally,we have also given numerical results to verify the conclusions presented in this paper.

Key words: conditional value-at-risk, risk aversion, supply chain optimization and coordination, revenue-sharing contract