A tri-level programming model based on Conditional Value-at-Risk for three-stage supply chain management

作者：Xu, Xinsheng; Meng, Zhiqing^*; Shen, Rui

来源：COMPUTERS & INDUSTRIAL ENGINEERING, 2013, 66(2): 470-475.

DOI：10.1016/j.cie.2013.07.012

• Conditional Value-at-Risk (CVaR)
• Tr-level programming
• Supply chain management
• Newsvendor problem

For the problem of supply chain management, the existing literature mainly focuses on the research of the single-stage supply chain or the two-stage supply chain that consists of a manufacturer and a retailer. To our best knowledge, little attention has been paid to the study of a more extensive supply chain that consists of a material supplier, a manufacturer and a retailer, which is a more practical and interesting case. Therefore, based on the Conditional Value-at-Risk (CVaR) measure of risk management, this paper proposes a tri-level programming model for the three-stage supply chain management. In this model, the material supplier and the manufacturer maximize their own profit while the retailer maximize his/her CVaR of expected profit. Further, we show that the proposed tri-level programming model can be transferred into a bilevel programming model, which can be solved by the existing methods. Numerical results show that the proposed model is efficient for improving the risk management of the three-stage supply chain.

• 出版日期2013-10
• 单位浙江工业大学; 滨州学院