Risk-averse preferences in a dual-channel supply chain with trade credit and demand uncertainty

Though it is an important means for enterprises to increase market demand and boost profits, trade credit can carry risks. Besides, risks also result from uncertain demand. Decision-makers’ attitude towards risk will influence the decisions of enterprises, so meaningful study impact preference on supply chain performance. This paper explores effect risk-averse preferences manufacturer or retailer their delayed payment periods decision utility when dual-channel structure adopted. Customer demands are depend that may offer them. Mean-variance model used describe due demand, establishes models under four decision-making situations (both risk-neutral; only risk-averse; both risk-averse). According our study, members with higher aversion more inclined prolong period. The retailers adverse her utility, but beneficial manufacturers thus a new coordination mechanism proposed achieve coordinate averse. We prove contract effectively improve whole chain. conduces enrich emerging literature relating period behavior environment.