DocumentCode :
2991734
Title :
Supply chain coordination with loss-averse agents under a returns policy
Author :
Xu Min-li ; Wang Qiao
Author_Institution :
Sch. of Bus., Central South Univ., Changsha, China
fYear :
2012
fDate :
20-22 Sept. 2012
Firstpage :
547
Lastpage :
553
Abstract :
Supply chain coordination with both a loss-averse retailer and loss-averse supplier under a returns policy is studied. The objective of each supply chain agent is to maximize the expected utility. A returns policy is applied for channel coordination and mitigating loss aversion. The necessary and sufficient conditions for the optimal returns price are identified. In particular, it is shown that a returns policy can´t always coordinate the supply chain and its coordination depends on how the difference between the loss aversions of the supplier (as a supply chain coordinator) and the retailer is. Numerical studies are conducted and managerial insights are developed.
Keywords :
contracts; numerical analysis; pricing; retailing; supply chain management; utility theory; channel coordination; expected utility maximization; loss aversion mitigation; loss-averse retailer; loss-averse supplier; necessary and sufficient conditions; optimal returns price; returns policy; supply chain coordination agent; Benchmark testing; Contracts; Educational institutions; Equations; Sufficient conditions; Supply chains; expected utility; loss aversion; returns policy; supply chain coordination;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Management Science and Engineering (ICMSE), 2012 International Conference on
Conference_Location :
Dallas, TX
ISSN :
2155-1847
Print_ISBN :
978-1-4673-3015-2
Type :
conf
DOI :
10.1109/ICMSE.2012.6414233
Filename :
6414233
Link To Document :
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