Robust coordination of supply chain with altruism under limited demand information

To explore the impact of demand distributional information insufficiency and altruism preference on operation of supply chain, the supply chain coordination with altruism was studied with robust optimization approach under the condition that mean and variance of demand had been available. The robust optimal order decision of the centralized supply chain and the buyback contract for coordinating the decentralized supply chain were given, and the numerical analysis was carried out. The results revealed that altruism had important influence on the robust decisions of supply chain members. If the supply chain members were completely altruistic, wholesale price contract could robust coordinate the supply chain; if not, a buy back contract could coordinate the supply chain. In addition, the allocation of total supply chain expected profit could be adjusted by setting different wholesale price. Meanwhile, the robust coordination strategy had strong robustness, which could effectively reduce the impact of the lack of demand distributional information insufficiency on the profit of supply chain system and its members. © 2019, Editorial Department of CIMS. All right reserved.