Supply Chain Coordination Optimization under the Influence of Customer Strategic Behavior and Retailer Risk Preference

Abstract

When wholesale price contracts encounter customers' strategic behaviors, they cannot coordinate the supply chain, so they introduce buyback contracts. However, in real life, people usually estimate the risks before making decisions, and so do supply chain members. Literature study has shown that retailers' risk preference will have a significant impact on their purchasing decisions, which in turn will affect retailers' inventory. Therefore, this paper mainly studies whether the use of buyback contracts can coordinate the supply chain under the influence of customer strategic behavior and retailers' risk preference. The research method is the Mean-CVaR, and this risk measurement tool can be used to describe the risk preference of retailers.