The optimal decision of risk-averse retailer under time-sensitive and price-sensitive demand

Author

Liu, Heng ; Ma, Yong-kai ; Tang, Xiao-wo

Author_Institution

Dept. of Econ. & Manage., Huizhou Univ., Huizhou, China

fYear

2011

fDate

25-27 June 2011

Firstpage

1

Lastpage

4

Abstract

Based on demand are both time-sensitive and price-sensitive, we use the mean-variance theory to characterize the retailer´s risk bias and study a two-echelon supply chain separately in decentralized decision mode and centralized decision mode. The decision processes in two modes are analyzed and the optimal solutions are found. A numerical analysis is proposed with an application. It is proved that more profit of supply chain can be gained in the mode of centralized decision than that in the mode of decentralized decision. Thus, and effective decision tool and method are provided for supply chain enterprise to compete in both time-sensitive and price-sensitive markets.

Keywords

pricing; profitability; supply chain management; mean-variance theory; optimal decision; price-sensitive market; profit; risk averse retailer; time-sensitive market; two echelon supply chain; Decision making; Delay; Economics; Marketing and sales; Portfolios; Pricing; Supply chains; decision mode; risk-averse; supply chain; time-sensitive and price-sensitive demand;

fLanguage

English

Publisher

ieee

Conference_Titel

Service Systems and Service Management (ICSSSM), 2011 8th International Conference on

Conference_Location

Tianjin

ISSN

2161-1890

Print_ISBN

978-1-61284-310-0

Type

conf

DOI

10.1109/ICSSSM.2011.5959480

Filename

5959480