Research Of Supply Chain Contract Selection With Payment Risk

In recent years, Supply chain management has increasingly become the key point to improve efficiency of enterprise. Among them, Supply chain contract playing as an important role of supply chain management also catches more and more researchers’ attention. Meanwhile, There are many uncertainties bringing risks for members in supply chain management. So it is of great significance to study on integration of the risks and the supply chain contracts.By analyzing the supply chain management and supply chain risk, this paper analyzes the combination of uncertainties and contracts in supply chain. All those shows supply chain uncertainties exist not only in external demand but also in internal payment. It concludes there is payment risk in supply chain contract.This article mainly by buy-back contract and revenue sharing contract as an example, study the influence of the payment risk of the existence of contract, by analyzing the flow of funds, two kinds of contracts concluded in the repurchase contract, supplier may bring payment risk to retailers, and retailers in revenue sharing contract risk could lead to payment to supplier. By applying the method of conditional value at risk, quantitative risk of payment required by the contract, when the existence of the supply chain members to consider payment risk, establish the basic model of the two kinds of contract respectively, it is concluded that in the presence of payment risk retailers ordering decisions. And draw in the repurchase contract, as a result of the existence of payment risk, retailers order will decline, the reason is due to repurchase the payment required by the contract risk will bring loss to retailers, retailers choose to reduce the quantity to deal with the unfavorable factors, thus to improve their income; In revenue sharing contract, the supplier wholesale price increases, the reason is because the payment risk existing in the revenue sharing contract can bring loss to suppliers, in order to deal with the unfavorable factors, supply chamber of commerce, choose to improve their wholesale price, reduce the risk of payment is brought about by the loss.Prior theory claims that buyback and revenue-sharing contracts achieve equivalent channel-coordinating solutions when applied in a dyadic supplier-retailer setting. However, When considering the payment risk, the traditional equivalent conditions no longer holds, Therefore, we consider the payment risk impact on parameter settings, Selectivity two contract research include three perspectives:supply chain, supplier and retailer. we find that the equivalence relation from the different perspectives when the supply chain have the payment risk, At the same time, according to a numerical example analysis concluded that equivalence relations are not only related with the parameters set, also related to the confidence.