Analyzing Risks Measurement and Transmission of Supply Chain with Retail Price Fluctuation

Author

Li, Yonghong ; Zhao, Lindu

Author_Institution

Inst. of Syst. Eng., Southeast Univ., Nanjing, China

fYear

2009

fDate

7-9 Dec. 2009

Firstpage

1148

Lastpage

1151

Abstract

In order to measure the supply chain risk caused by the fluctuation of retail price which is considered as a random variable, in this paper, for a three-echelon supply chain with no inventories, we use the variances of profits of supplier, distributor and retailer to characterize their risks. And then we analyze the transmission mode of risks by the differences of variances of profits of retailer, distributor and supplier, finding the ranges of the distribution price and wholesale price that ensure the risks of distributor are lower than that of retailer, and the risks of supplier are lower than that of distributor. At last, a numerical example is presented to show the results.

Keywords

economic indicators; pricing; profitability; risk analysis; supply chain management; distribution price; distributor profit; retail price fluctuation; retailer profit; risk analysis; supplier profit; supply chain; wholesale price; Crisis management; Fluctuations; Pricing; Procurement; Random variables; Risk analysis; Risk management; Supply chain management; Supply chains; Uncertainty;

fLanguage

English

Publisher

ieee

Conference_Titel

Innovative Computing, Information and Control (ICICIC), 2009 Fourth International Conference on

Conference_Location

Kaohsiung

Print_ISBN

978-1-4244-5543-0

Type

conf

DOI

10.1109/ICICIC.2009.105

Filename

5412223