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The Effect of Risk Aversion on a Supply Chain with Postponed Pricing

Access to new resource related to supply chain management added to PM World Library

 Resource provided by
Ovya RK

18 April 2018 – Mumbai, India – Access to a new resource has been added to the PM World Library on the subject of Supply Chain Management. The new resource is titled “The Effect of Risk Aversion on a Supply Chain with Postponed Pricing”. Resource is a 2014 paper by Tatyana Chernonog and Konstantin Kogan published in the Journal of the Operational Research Society.

Demand and Product price - two factors that retailers need to maintain a balance between, when it comes to supply chain. In this paper, a supply chain with a supplier and a risk-averse retailer operating under endogenous demand in retail pricing is considered. The goal is to study the effect of risk-aversion and postponed pricing on a retailer’s decision and overall supply chain. Through extensive analysis, the authors show that choice of the optimal pricing policy depends on the sizes of both the order quantity and the demand potential. Also, the optimal order quantity of a risk-averse retailer does not necessarily decrease with the level of risk aversion or with the wholesale price.

To access this resource, go to the Applications and Hot Topics section of the PMWL at, click on “Supply Chain Management” and scroll down to papers. Must be registered as Free Trial, Professional or Scholar member and logged in to access.

This new resource provided through the PMWL university research internship program; to learn more, click here