A Cooperation and Competition Model for Risk Management of a Two-Stage Supply Chain
Lina Xu, Zhiqing Meng, Hongjian Yu
Available Online April 2017.
- https://doi.org/10.2991/amsce-17.2017.34How to use a DOI?
- conditional value-at-risk; equilibrium solution; supply chain management; risk management
- 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.
- 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 -