Risk-Averse Suppliers’ Optimal Pricing Strategies in a Two-Stage Supply Chain | Zendy

Rui Shen | Zendy; Zhiqing Meng | Zendy; Xinsheng Xu | Zendy; Min Jiang | Zendy

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Risk-Averse Suppliers’ Optimal Pricing Strategies in a Two-Stage Supply Chain

Author(s) -

Rui Shen,

Zhiqing Meng,

Xinsheng Xu,

Min Jiang

Publication year - 2013

Publication title -

discrete dynamics in nature and society

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.264

H-Index - 39

eISSN - 1607-887X

pISSN - 1026-0226

DOI - 10.1155/2013/937141

Subject(s) - supply chain , microeconomics , function (biology) , mathematical optimization , computer science , operations management , business , operations research , industrial organization , economics , mathematics , marketing , evolutionary biology , biology

Risk-averse suppliers’ optimal pricing strategies in two-stage supply chains under competitive environment are discussed. The suppliers in this paper focus more on losses as compared to profits, and they care their long-term relationship with their customers. We introduce for the suppliers a loss function, which covers both current loss and future loss. The optimal wholesale price is solved under situations of risk neutral, risk averse, and a combination of minimizing loss and controlling risk, respectively. Besides, some properties of and relations among these optimal wholesale prices are given as well. A numerical example is given to illustrate the performance of the proposed method

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