Liu Z., Zhao Y., He H., Zhou M., 2015, Study on Supply Chain Buy-Back Contract Model under Risk- averse Condition, Chemical Engineering Transactions, 46, 547-552.
In this paper, supposing a supply chain composed of a risk-neutral supplier and a risk-averse retailer, the buy- back contract with a risk-averse retailer is designed and modelled, the strategy of providing the buy-back contract to increase revenue and coordinate the supply chain is analyzed .It uses downside risk restriction to measure the degree of risk the retailer is eager to assume. It also analyses the return policy to coordinate the supply chain under risk-averse condition.Finally, a simulation shows the accuracy and effectiveness of the return policy.
