Random yield risk sharing in a two-level supply chain

Mean–variance analysis of the newsvendor model with stockout cost☆

“…In view of this, a number of papers have been devoted to risk analysis of supply chain models. Recent studies include, but are not limited to, those by Lau [13], Bouakiz and Sobel [5], Choi et al [9], Eeckhoudt et al [10], Lau and Lau [14], Agrawal and Seshadri [1,2], Chen and Federgruen [7], Buzacott et al [6], Chen et al [8], Wang and Webster [18], Wu et al [19], Bogataj and Bogataj [4], He and Zhang [11], Sounderpandian, Prasad and Madan [16], and Agrawal and Ganeshan [3]. For an extensive review of the literature on supply chain risk management or extension of different objectives on newsvendor problem, the reader is referred to Khouja [12], Tang [17] and Wu et al [20].…”

Supply Chain Coordination Considering Stochastic Demand and Raw Material Quality Defects

“…Eynan and Kropp (2007) proposed a method to integrate stochastic demand into the EOQ problems with Taylor series expansion, and further constructed an EOQ model containing stochastic demand, variable inventory cost and safety stock [15]. He and Zhang (2008) studied the coordination and risk-sharing problem as to a two-stage supply chain including one supplier and one retailer under the conditions of uncertain production demand [16]. They found that under certain circumstances, stochastic production could promote the performance of supply chain and protected it from the side effect of double marginalization.…”

Coordinating Contracts in SCM: A Review of Methods and Literature

“…Zimmer (2002)) and uncertain delivered quantities (e.g. He and Zhang (2008)). The latter is also referred to as random yield.…”