Research On Order Decision Of Retailer Risk Avoidance Under Different Supply Chain Contracts

With the rapid growth of low-cost supplies in developing countries,many large retailers have turned to global sourcing,and dual sourcing has become more and more common.Large retailers purchase from local distributors and global distributors at the same time.Global distributors have strong corporate strength.In order to obtain orders from retailers,they usually sign repurchase contracts,price subsidies contracts and revenue sharing contracts with retailers.This paper establishes an ordering decision model for single-purchase and dual-purchasing retailers under the repurchase contract,price subsidy contract and revenue-sharing contract.First,through numerical verification,the ordering decisions of single-purchasing and dual-purchasing retailers are compared.Secondly,by comparing the ordering decisions of the dual purchasing retailer risk aversion under the repurchase contract,the price subsidy contract and the revenue-sharing contract,the impact of the three types of contracts on the retailer’s ordering decision and the profits of all member companies is analyzed.The research of the paper shows that the ordering decision of retailers is affected by the degree of risk aversion.The higher the degree of risk aversion of the retailer,the smaller the order quantity of the decision;when the retailer considering risk aversion makes the ordering decision,the distributor who provides contract shall be introduced It can increase the expected profit;when a retailer considering risk aversion makes an ordering decision,the expected profit will be higher under a buyback contract or a price subsidy contract;the ordering decision of a retailer considering risk aversion is affected by the manufacturer’s decision.When the retailer does not choose the wholesale price that maximizes its profit,the retailer decides to increase the order quantity,and its expected profit will increase even more.