Subscribe Now Subscribe Today
Research Article

Research on Risk-averse Suppliers’ Supplying Behavior Based on Consignment Sale Model

Biao Zhang and Di Zhang
Facebook Twitter Digg Reddit Linkedin StumbleUpon E-mail

Owing to the existence of risk-averse suppliers, this research constructed a newsvendor model of supply chain on the basis of consignment sale model. Through theoretical analysis, this research proved the correlation between suppliers’ risk coefficient, the distributional proportion of retailers’ interests and suppliers’ supplies was negative while the correlation between shared coefficient of retailers’ cost and suppliers’ supplies was positive. Finally, the conclusion was proved to be correct through a numerical illustration. The conclusion set a guidance to formulate a effective supplying contract for predominant retailers.

Related Articles in ASCI
Similar Articles in this Journal
Search in Google Scholar
View Citation
Report Citation

  How to cite this article:

Biao Zhang and Di Zhang, 2013. Research on Risk-averse Suppliers’ Supplying Behavior Based on Consignment Sale Model. Journal of Applied Sciences, 13: 3594-3598.

DOI: 10.3923/jas.2013.3594.3598


1:  Adida, E. and N. Ratisoontorn, 2011. Consignment contracts with retail competition. Eur. J. Oper. Res., 215: 136-148.
CrossRef  |  

2:  Chen, S.L. and C.L. Liu, 2008. The optimal consignment policy for the manufacturer under supply chain co-ordination. Int. J. Prod. Res., 46: 5121-5143.
CrossRef  |  

3:  Gan, X.H., S.P. Sethi and H.M. Yan, 2005. Channel coordination with a risk-neutral supplier and a downside-risk-averse retailer. Prod. Oper. Manage., 14: 80-89.
CrossRef  |  

4:  Gerchak, Y. and E. Khmelnitsky, 2003. A consignment system where suppliers cannot verify retailer's sales reports. Int. J. Prod. Econ., 83: 37-43.
CrossRef  |  

5:  Hackett, S.C., 1993. Consignment contracting. J. Econ. Behav. Org., 20: 247-253.
CrossRef  |  

6:  Hsieh, C.C. and Y.T. Lu, 2010. Manufacturer's return policy in a two-stage supply chain with two risk-averse retailers and random demand. Eur. J. Oper. Res., 207: 514-523.
CrossRef  |  

7:  Li, S.J., Z. Zhu and L. Huang, 2009. Supply chain coordination and decision making under consignment contract with revenue sharing. Int. J. Prod. Econ., 120: 88-99.
CrossRef  |  

8:  Ru, J. and Y. Wang, 2010. Consignment contracting: Who should control inventory in the supply chain? Eur. J. Oper. Res., 201: 760-769.
CrossRef  |  Direct Link  |  

9:  Shi, K.R. and T.J. Xiao, 2008. Coordination of a supply chain with a loss-averse retailer under two types of contracts. Int. J. Inform. Decis. Sci., 1: 5-25.
CrossRef  |  Direct Link  |  

10:  Wang, C.X. and S. Webster, 2007. Channel coordination for a supply chain with a risk-neutral manufacturer and a loss-averse retailer. Decis. Sci., 38: 361-389.
CrossRef  |  

11:  Wang, C.X., S. Webster and N.C. Suresh, 2009. Would a risk-averse newsvendor order less at a higher selling price? Eur. J. Oper. Res., 196: 544-553.
CrossRef  |  

12:  Wang, Y., L. Jiang and Z. Shen, 2004. Channel performance under consignment contract with revenue sharing. Manage. Sci., 50: 34-47.
CrossRef  |  Direct Link  |  

13:  Xiao, T.J. and D.Q. Yang, 2008. Price and service competition of supply chains with risk-averse retailers under demand uncertainty. Int. J. Prod. Econ., 114: 187-200.
CrossRef  |  

14:  Zhang, D.F., R. de Matta and T.J. Lowe, 2010. Channel coordination in a consignment contract. Eur. J. Oper. Res., 207: 897-905.
CrossRef  |  

©  2021 Science Alert. All Rights Reserved