Optimal Spot Trading Integrated with Quantity Flexibility Contracts

2020 ◽  
Vol 29 (6) ◽  
pp. 1532-1549
Author(s):  
Jianjun Xu ◽  
Mustafa Cagri Gürbüz ◽  
Youyi Feng ◽  
Shaoxiang Chen
Keyword(s):  
Quantity Flexibility

scholarly journals Supply Chain Coordination with a Loss-Averse Retailer and Combined Contract

Mathematics ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 586
Author(s):  
Wei Liu ◽  
Shiji Song ◽  
Ying Qiao ◽  
Han Zhao
Keyword(s):  
Supply Chain ◽  
Loss Aversion ◽  
Value At Risk ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
Conditional Value At Risk ◽  
Optimal Order ◽  
Confidence Levels ◽  
Quantity Flexibility ◽  
Quantity Flexibility Contract

This paper studies the supply chain coordination where the retailer is loss-averse, and a combined buyback and quantity flexibility contract is introduced. The loss-averse retailer’s objective is to maximize the Conditional Value-at-Risk of utility. It is shown the combined contract can coordinate the chain and a unique coordinating wholesale price exists if the confidence level is below a threshold. Moreover, the retailer’s optimal order quantity, expected utility and coordinating wholesale price are decreasing in loss aversion and confidence levels, respectively. We also find that when the contract parameters are restricted, the combined contract may coordinate the supply chain even though neither of its component contracts coordinate the chain.

A quantity-flexibility contract with coordination

2016 ◽  
Vol 179 ◽  
pp. 273-284 ◽  
Author(s):  
Xin Li ◽  
Zhaotong Lian ◽  
Kwee Keong Choong ◽  
Xiaoming Liu
Keyword(s):  
Quantity Flexibility ◽  
Quantity Flexibility Contract
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