Decision models for supply chain based on CVaR and revenue sharing contract under stochastic elastic demand

The supply chain system model is proposed based on revenue sharing policy under stochastic elastic demand. In a conditional value-at-risk framework, the optimal decision making behavior of centralized supply chain and risk-averse supplier and risk-averse retailer under decentralized supply chain are analyzed. Further, given that the random component of demand follows a uniform distribution, we study on the optimal decisions under decentralized and centralized supply chain systems respectively. The results show that the lower the centralized supply chain's risk-aversion, which is also related to the optimal retail price and random demand, the lower the optimal stocking factor. Secondly, the optimal stocking factor is only related to the risk aversion of retailer, but the optimal retail price also related to the optimal revenue sharing coefficient and trade price. In addition, the risk aversion of supply chain members affected the optimal revenue sharing coefficient, but the results determine that in most cases the revenue sharing contract can't coordinate this kind of decentralized supply chain system perfectly.