Capacity investment in supply chain with risk averse supplier under risk diversification contract

Juan He, Chao Ma, Kai Pan

Research output: Journal article publicationJournal articleAcademic researchpeer-review

33 Citations (Scopus)

Abstract

Under the Conditional Value-at-Risk (CVaR) criterion, risk diversification contract has a Pareto improvement and can allocate system performance appropriately in both symmetrical and asymmetrical demand information. In addition, this contract can coordinate supply chain and has a larger market than an option, capacity reservation, payback, revenue-sharing contract under the symmetrical demand information.
Original languageEnglish
Pages (from-to)255-275
Number of pages21
JournalTransportation Research Part E: Logistics and Transportation Review
Volume106
DOIs
Publication statusPublished - 1 Oct 2017

Keywords

  • Capacity investment
  • Coordination
  • Nash bargaining
  • Risk averse

ASJC Scopus subject areas

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

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