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Mean-CVaR model of wholesale price contracts and dual purchase contracts in the supply chain

  • Harbin Institute of Technology

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Wholesale price contracts and dual purchase contracts are the most common contract styles in the supply chain because they are price-only contracts. The CVaR model of loss in revenue of retailers in the two styles of contracts under atwo-level supply chain is proposed in this paper according to the definition of Conditional Value at Risk (CVaR), which previously has been used in financial engineering. Consequently, the mean-CVaR model, which aims at revenue maximization with CVaR risk explosion constraints, is proposed. The numer icalresults indicate that dual purchase contracts achieve strict Pareto improvementover wholesale price contracts, with more revenue and less risk explosion.

Original languageEnglish
Title of host publicationProceedings of the 9th International Conference of Chinese Transportation Professionals, ICCTP 2009
Subtitle of host publicationCritical Issues in Transportation System Planning, Development, and Management
PublisherASCE - American Society of Civil Engineers
Pages3160-3166
Number of pages7
ISBN (Print)9780784410646
DOIs
StatePublished - 2009
Event9th International Conference of Chinese Transportation Professionals, ICCTP 2009: Critical Issues in Transportation System Planning, Development, and Management - Harbin, China
Duration: 5 Aug 20099 Aug 2009

Publication series

NameProceedings of the 9th International Conference of Chinese Transportation Professionals, ICCTP 2009: Critical Issues in Transportation System Planning, Development, and Management
Volume358

Conference

Conference9th International Conference of Chinese Transportation Professionals, ICCTP 2009: Critical Issues in Transportation System Planning, Development, and Management
Country/TerritoryChina
CityHarbin
Period5/08/099/08/09

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