Applied Mathematics and Nonlinear Sciences
Journal license

Journal

Applied Mathematics and Nonlinear Sciences


Volume
& Issue

Volume 6, Issue 2


Published
on

April 29, 2022


Pages

499-512


DOI

Article

Decisions of competing supply chain with altruistic retailer under risk aversion

Check for updates


Authors

Jing Liu Affiliation:
Hubei Key Laboratory of Power System Design and Test for Electrical Vehicle, Hubei University of Arts and Science, Xiangyang, 441053, China
, Yi Wu Affiliation:
School of Automobile and Traffic Engineering, Hubei University of Arts and Sciences, Xiangyang 441053, China
, Fuyou Huang Affiliation:
Institute of Transportation Development Strategy & Planning of Sichuan Province, Chengdu 610041, China
and Chao Ma Affiliation:
Hubei Key Laboratory of Power System Design and Test for Electrical Vehicle, Hubei University of Arts and Science, Xiangyang, 441053, China


Abstract

This paper considers the supply chain composed of altruistic retailers and selfish manufacturers under risk aversion. We use the mean variance (MV) method to construct two types of behavior models. One is a two-stage supply chain model with a single manufacturer and a single retailer, and the other is a competitive supply chain model with two retailers and two manufacturers. We discuss the decision-making problems under manufacturer Stackelberg (MS) game and retailer Stackelberg (RS) game, respectively. We analyze the role of risk aversion and power structure. Results show that the more risk aversion manufacturers are, the lower the emission reduction levels are. It also find that the prices increase with power shift from retailers to manufacturers. Finally, we point out that the competing can help the firms earn more benefits via numerical studies.


Keywords

Competing supply chain, Altruistic preference, Stackelberg game, Risk aversion, 90B50


Citation

Liu, J., Wu, Y., Huang, F., & Ma, C. (2021). Decisions of competing supply chain with altruistic retailer under risk aversion. Applied Mathematics and Nonlinear Sciences, 6(2), 499–512. https://doi.org/10.2478/amns.2021.2.00301

Published by: Engineering Journals

Engineering Journals Logo