Inventory sharing strategy of loss averse retailer
To solve the deviation of actual decision,the inventory sharing strategy between retailers who had the preference of loss aversion was researched.The retailers' decision on out-of-stock situation was illustrated,the connection between lead time and retailers' choices was discussed,and the value range of lead time under the situation of proposes transshipment strategy between retailers was figured out.By drawing the preference of loss aversion into the model of inventory sharing,the transshipment strategy between two retailers and the optimal transshipment quantity were analyzed.The change between expected transshipment quantity and loss aversion coefficient and the change between equilibrium transshipment price and loss aversion coefficient were studied.Through the numerical experiments,all results above were confirmed.
lead timeinventory sharingtransshipment pricetransshipment quantityloss aversion