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Suppliers often use contract mechanism to mitigate double marginalization and improve the supply chain's performance. In this study, by considering both loss aversion and extra-gain guilty, we focus on the members' fairness concerns in the contract design, and analyze the influence of fairness concerns on supply chain's profit and profit distribution. We study a one-supplier and two-retailer supply...
Following the coordination framework created by Gan, Sethi and Yan[1], we address the supply chain coordination issues with a supplier and a retailer where their risk measure is Conditional Value-at- Risk (CVaR). We find the set of pareto-optimal solutions, and design contracts to achieve these solutions. When the supplier's profit is deterministic, we find that the wholesale price contract can coordinate...
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