Mean-Risk Analysis of Wholesale Price Contracts with Stochastic Price-Dependent Demand

Part of the International Series in Operations Research & Management Science book series (ISOR, volume 234)


Given that risk is a pertinent issue in designing supply chain contracts with stochastic demand, Chap. 3 is devoted to developing a mean-risk analysis for the commonly adopted wholesale price contract. The research incorporates contract value risk into the wholesale price contract model. Regarding the contract value risk, it actually relates to the uncertainty in the true value of the contract and arises from various uncertainty sources inherent in the supply chain, such as demand uncertainty, price uncertainty, etc. In addition, given that the supply chain agents with different risk preferences will have different risk attitudes towards the contract value risk, which in turn affects their contracting decisions, the research also considers the degree of supply chain agents risk-aversion towards the contract value risk. This chapter makes the first attempt to assess the efficiency of wholesale price contracts, incorporating contract value risk and risk preferences attached to it; thereby some interesting managerial and academic insights are generated for supply chain contracts.


Wholesale Price Contract Mean-risk Analysis Supply Chain Contracts Risk Averse Channel Profit 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.School of International Trade and EconomicsUniversity of International Business and EconomicsBeijingChina
  2. 2.School of Economics and ManagementBeijing University of Aeronautics and AstronauticsBeijingChina
  3. 3.Chinese Academy of SciencesAcademy of Mathematics and Systems ScienceBeijingChina
  4. 4.Department of Logistics and Maritime StudiesThe Hong Kong Polytechnic UniversityHung HomHong Kong SAR

Personalised recommendations