Research Article

Trade Credit and Revenue Sharing of Supply Chain with a Risk-Averse Retailer

Table 1

Notations.

NotationDescription

Retail price per unit
Wholesale price per unit
Salvage price per unit of the retailer
Unit shortage cost
Production cost per unit
Process cost per unit of the retailer
Capital cost ratio of the manufacturer
Average return on investment of retailer
Trade credit period
Stochastic market demand
Cumulative distribution function of market demand
Probability density function of market demand
Risk-aversion coefficient of the retailer
Revenue sharing coefficient
Mean of the stochastic market demand
Order quantity of the retailer
Optimal quantity from the basic model, single trade credit model, trade credit, and revenue sharing collaboration model, respectively, .