Global Supply Chain Model With Buyback Contract Under Risk Averse Assumption

Multinational corporations become a major force for world economic development as the rapid development of the global economy. Business management is chenging because of multinational corporations' offices and partners around the world. More and more multinational enterprise abandoned the traditional "vertical integration" management mode, switch to "crosswise integration" management mode. Global supply chain mainly studied the coordination of the different manufacturers of raw materials procurement and production and distribution of products to achieve the optimal in the international market environment. To make the enterprise internal management mechanism, and to consider other country's resources and environment, in order to realize resources complementary, and finally achieve win-win.Global supply chain is an effective management tool. This article aims to discuss the buy back contract and then to analysis of the impact of transportation cost allocation and tariffs on buy-back contract in the global supply chain.It is constitute by one supplier and one retailer,and the attitude towards risk is a topic of this article.First, the article discusses the theory of supply chain management, and introduces the supply chain and supply chain management concepts,characteristics and so on. The type of supply chain coordination contract and the basic principle of buy-back contracts are Described.then, It proposes two questions and gives solutions. First of all, it studies centralized decision-making and decentralized decision-making model to analyze the optimal buyback in the international supply chain when we assume that suppliers and retailers are risk neutral case, and discusses the impact of sharing of transport costs and tariffs for the buy-back contract model parameters; secondly, we analyze the centralized decision-making and decentralized decision-making model in the optimal buyback assuming suppliers and retailers for different combinations of risk aversion. Finally, we get the repurchase price of the optimal model, the optimal order quantity as well as suppliers and retailers' expected utility in the supply chain coordination.Finally, we discusse the relationships of the risk aversion of retailer's, the optimal order quantity, transport cost-sharing coefficients, the repurchase price and the repurchase price.Then, the article summary of contents,and points out the areas where research results and future research directions.