With the rapid development of contemporary e-commerce, there are now multiple sales channels in the supply chain. At the same time, frequent natural disasters, terrorist attacks, and economic disasters have increased the risks from disruptions in supply chain transportation. Cargo transportation insurance is an important tool for managing transportation disruptions in the supply chain. Based on a secondary supply chain, this paper analyzes an expected profit model for a manufacturer's decision, in a dual-channel supply chain, to purchase cargo transportation insurance against transport disruptions. It explores the impact of manufacturers with insurance on the expected profits in the supply chain. The research reveals that cargo transportation insurance can effectively reduce losses caused by transportation disruptions. In addition, the results show that, if transportation insurance is purchased and the possibility of transportation disruption exists in both channels, the total profit of the supply chain under decentralized decision is higher than its profit under centralized decision.
By applying Stackelberg game theory, this paper investigates the supply chain with a risk-neutral retailer and a risk-averse supplier, measuring risk-averse behavior by using conditional value-at-risk (CVaR). The equilibrium solutions of the supplier's wholesale price and the retailer's order quantity are obtained under two financing strategies: supplier financing (SF) and supplier investment (SI). It is found that the supplier's risk aversion is a crucial factor affecting both parties' financing decisions, and the supplier should offer different financing strategies to the retailer based on his risk attitude and the profit-sharing coefficient. However, the retailer prefers SF regardless of the supplier's risk aversion. Taking bank credit financing as a basic model, the advantages of SF and SI have been investigated. A Pareto improvement region for the two finance strategies has been identified and some suggestions are provided for the supplier's optimal utility. Then we extend to the situation that both parties are risk-averse and use the financing cost-sharing mechanism to achieve centralized decision-making.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.