TY - GEN
T1 - Manufacturer's return policy for two risk-averse competing retailers
AU - Lu, Yu Ting
AU - Hsieh, Chung Chi
AU - Li, Cheng Hung
PY - 2008
Y1 - 2008
N2 - This paper studies the manufacturer's return policy and the retailers' decisions in a supply chain consisting of one manufacturer and two competing and risk-averse retailers under a single-period framework. The manufacturer sells her short-life-cycle products through two competing retailers, and the product demand is random and sensitive to the retailers' selling prices. We incorporate the risk measure CVaR into the supply chain model to characterize risk-averse retailers so that the retailers' decisions are based upon risk minimization rather than expected profit maximization. We also model the interaction of the manufacturer and the retailers as a manufacturer-Stackelberg game in which the manufacturer acts as a Stackelberg leader, and the retailers act as followers and engage in a simultaneous-move subgame. We conduct a numerical analysis, focusing on identical retailers and a particular demand distribution, and discusses the effects of risk aversion on the chain members' decisions and profits.
AB - This paper studies the manufacturer's return policy and the retailers' decisions in a supply chain consisting of one manufacturer and two competing and risk-averse retailers under a single-period framework. The manufacturer sells her short-life-cycle products through two competing retailers, and the product demand is random and sensitive to the retailers' selling prices. We incorporate the risk measure CVaR into the supply chain model to characterize risk-averse retailers so that the retailers' decisions are based upon risk minimization rather than expected profit maximization. We also model the interaction of the manufacturer and the retailers as a manufacturer-Stackelberg game in which the manufacturer acts as a Stackelberg leader, and the retailers act as followers and engage in a simultaneous-move subgame. We conduct a numerical analysis, focusing on identical retailers and a particular demand distribution, and discusses the effects of risk aversion on the chain members' decisions and profits.
UR - https://www.scopus.com/pages/publications/52449099213
UR - https://www.scopus.com/pages/publications/52449099213#tab=citedBy
U2 - 10.1109/ICICIC.2008.344
DO - 10.1109/ICICIC.2008.344
M3 - Conference contribution
AN - SCOPUS:52449099213
SN - 9780769531618
T3 - 3rd International Conference on Innovative Computing Information and Control, ICICIC'08
BT - 3rd International Conference on Innovative Computing Information and Control, ICICIC'08
T2 - 3rd International Conference on Innovative Computing Information and Control, ICICIC'08
Y2 - 18 June 2008 through 20 June 2008
ER -