Supply Chain Contract Choice with Different Behavior Preferences of Retailer
Retailer may exhibit irrationality when facing the risk of demand uncertainty; therefore, we consider four retailer behavioral preferences: risk neutral (RN), waste aversion (WA), stockout aversion (SA), and stockout-waste aversion (SW). The decision-making and contract choice of upstream and downst...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/7894885 |
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| author | Yonglong Wang Xinyu Zheng Jirong Cai Yuelong Zheng |
| author_facet | Yonglong Wang Xinyu Zheng Jirong Cai Yuelong Zheng |
| author_sort | Yonglong Wang |
| collection | DOAJ |
| description | Retailer may exhibit irrationality when facing the risk of demand uncertainty; therefore, we consider four retailer behavioral preferences: risk neutral (RN), waste aversion (WA), stockout aversion (SA), and stockout-waste aversion (SW). The decision-making and contract choice of upstream and downstream enterprises in cases where demand depends on supplier’s effort are studied. The results show that if the retailer has only SA or RN preferences, then the supplier prefers to choose a wholesale price contract, while the retailer does the opposite, if the retailer has only WA, then the supplier prefers to choose a revenue sharing contract, but the retailer’s contract choice depends on the degree of waste aversion, and if the retailer has SW, then the contract choice of upstream and downstream enterprises is related to the degree of waste aversion and stockout aversion. |
| format | Article |
| id | doaj-art-6d4a23c3edaf4feb9ae48239ed0cf579 |
| institution | Kabale University |
| issn | 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-6d4a23c3edaf4feb9ae48239ed0cf5792025-02-03T01:25:15ZengWileyDiscrete Dynamics in Nature and Society1607-887X2021-01-01202110.1155/2021/7894885Supply Chain Contract Choice with Different Behavior Preferences of RetailerYonglong Wang0Xinyu Zheng1Jirong Cai2Yuelong Zheng3School of Business AdministrationSchool of Business AdministrationSchool of Business AdministrationSchool of Business AdministrationRetailer may exhibit irrationality when facing the risk of demand uncertainty; therefore, we consider four retailer behavioral preferences: risk neutral (RN), waste aversion (WA), stockout aversion (SA), and stockout-waste aversion (SW). The decision-making and contract choice of upstream and downstream enterprises in cases where demand depends on supplier’s effort are studied. The results show that if the retailer has only SA or RN preferences, then the supplier prefers to choose a wholesale price contract, while the retailer does the opposite, if the retailer has only WA, then the supplier prefers to choose a revenue sharing contract, but the retailer’s contract choice depends on the degree of waste aversion, and if the retailer has SW, then the contract choice of upstream and downstream enterprises is related to the degree of waste aversion and stockout aversion.http://dx.doi.org/10.1155/2021/7894885 |
| spellingShingle | Yonglong Wang Xinyu Zheng Jirong Cai Yuelong Zheng Supply Chain Contract Choice with Different Behavior Preferences of Retailer Discrete Dynamics in Nature and Society |
| title | Supply Chain Contract Choice with Different Behavior Preferences of Retailer |
| title_full | Supply Chain Contract Choice with Different Behavior Preferences of Retailer |
| title_fullStr | Supply Chain Contract Choice with Different Behavior Preferences of Retailer |
| title_full_unstemmed | Supply Chain Contract Choice with Different Behavior Preferences of Retailer |
| title_short | Supply Chain Contract Choice with Different Behavior Preferences of Retailer |
| title_sort | supply chain contract choice with different behavior preferences of retailer |
| url | http://dx.doi.org/10.1155/2021/7894885 |
| work_keys_str_mv | AT yonglongwang supplychaincontractchoicewithdifferentbehaviorpreferencesofretailer AT xinyuzheng supplychaincontractchoicewithdifferentbehaviorpreferencesofretailer AT jirongcai supplychaincontractchoicewithdifferentbehaviorpreferencesofretailer AT yuelongzheng supplychaincontractchoicewithdifferentbehaviorpreferencesofretailer |