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Supply Chain Decision Analysis Based on Risk-Aversion and Cost Information Asymmetry

DOI: 10.4236/jssm.2019.123030, PP. 439-450

Keywords: Hybrid Channel Supply Chain, Risk Aversion, Retailer Cost Information Asymmetry, Lied Factor

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Abstract:

This paper analyzes the impact of risk aversion and retailer’s cost lied factor on supply chain decision-making in a hybrid channel supply chain system consisting of a risk-averse manufacturer and a retailer. According to the expected utility maximization theory, this paper gets the optimal decision of the manufacturer and retailer. First, it analyzes the impact of risk aversion factor on pricing decisions of supply chain members when the information of the retailer’s cost is public. Next, this paper considers the fact that the retailer has advantages on cost information, analyzes the relations between the retailer’s optimal cost lied factor and each parameter.

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