Proceedings of the 2017 International Conference on Advanced Materials Science and Civil Engineering (AMSCE 2017)

A Cooperation and Competition Model for Risk Management of a Two-Stage Supply Chain

Authors
Lina Xu, Zhiqing Meng, Hongjian Yu
Corresponding Author
Lina Xu
Available Online April 2017.
DOI
https://doi.org/10.2991/amsce-17.2017.34How to use a DOI?
Keywords
conditional value-at-risk; equilibrium solution; supply chain management; risk management
Abstract
Based on the CVaR measure, this paper introduces a Cooperation and Competition model for the risk management of the two-stage supply chain. It is supposed that both the supplier and the retailer are risk-averse and their objectives are to minimize their own CVaR(Conditional Value-at-Risk) objective instead of the expected profit. We introduce an e*-optimal equilibrium solution to this model, which implies the supplier and the retailer should give up a same value no more than e* for their cooperation. It is proved that the e*-optimal equilibrium solution can be obtained by solving a corresponding mathematical programming problem. Numerical results show that this method is efficient to improve the risk management of the two-stage supply chain.
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Proceedings
Part of series
Advances in Engineering Research
Publication Date
April 2017
ISBN
978-94-6252-337-1
ISSN
2352-5401
DOI
https://doi.org/10.2991/amsce-17.2017.34How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Lina Xu
AU  - Zhiqing Meng
AU  - Hongjian Yu
PY  - 2017/04
DA  - 2017/04
TI  - A Cooperation and Competition Model for Risk Management of a Two-Stage Supply Chain
PB  - Atlantis Press
SP  - 150
EP  - 155
SN  - 2352-5401
UR  - https://doi.org/10.2991/amsce-17.2017.34
DO  - https://doi.org/10.2991/amsce-17.2017.34
ID  - Xu2017/04
ER  -