The Loss Of Aversion Supply Chain Operational Decision And Coordination With Partial Delay In Payments

With the development of social economy and the progress of science and technology,the individual needs of consumers is increasing and the products are improved quickly as seasonal products are,which have some characteristics,like uncertain demand,short sales time and low residual value.Changes in the industry environment,uncertain market demand and price volatility and other uncertain factors will lead decision makers to face a great risk.Increased risk means that the possibility of loss will increase.Once faced with high-risk markets,the behavior of decision makers tends to become cautious.Retailers who are directly facing the risk in the seasonal products market,the performance of the loss of aversion is more obvious,and also need to be concerned about by the supply chain core business.At present,more and more attention are paid by enterprise management and academic research to the impact of the loss of aversion in decision-making and income of the supply chain and members.As a kind of coordination and incentive means,delay in payment is an effective way that the upstream members of the supply chain allow their downstream members to return the payment after the end of the sales period,and it is also a direct way to share risk.On the basis of analyzing the actual operation problems of S Toy Company,this paper focuses on the influence of delay in payment on the decision-making and coordination of loss aversion supply chain.In order to reduce the risk,the retailers are required to pay part of the purchase price paragraph at first.The specific content of this article is as follows: First,based on the actual operation of S Toy Company,we analyze that the downstream terminal retailers of fashion toys are a loss of version,and the damage of loss aversion to the interests of the supply chain.Then,based on the existing problems of S Company,the supply chain model composed of a single loss neutral supplier and multi-loss aversion retailers is created,which mainly analyzes the impact of the degree of loss aversion and the number of retailers to supply chain decisions and interests.Thirdly,we introduce partial delay in payments contracts,and compare the changes of the interests of the supply chain before and after the introduction of the contract,and the difference of the coordination mechanism between supply chain of the loss neutral and the loss aversion.By theoretical and numerical analysis,combined coordination mechanism of wholesale price and the ratio of delay in payment is proved feasible.Finally,combined with the reality of S Toy Company situation and questions,we make recommendations for reference.It is found that there is a Nash equilibrium among the multiple loss-aversion retailers.In the decentralized decision,there is a unique optimal order quantity that makes the retailer's expected utility to be the most.The most order quantity is the loss of aversion function,is the number of retailers to increase the function,is the extension of the proportion of payment function;the use of part of the extension of the contract can increase the system income;when the wholesale price is certain,when the retailer loss of aversion or the number meet certain conditions,the delay in payments can coordinate the supply chain of loss of aversion;suppliers can design delay in payments ratio and wholesale price combination contract to achieve supply chain coordination,this coordination has a stronger flexibility.At last,we make some recommendations for reference to S company when facing loss aversion retailers.