Abstract:In view of the risk appetite characteristics of decision makers and the rapid development of intra-product
specialization, an assembly supply chain model with multiple loss-averse component suppliers and a risk-neutral assembler
is established. In the model, each supplier provides a complementary component to the assembler with a pull contract.
Firstly, the study derives the optimal strategy of each enterprise under the pull contract, and finds that the optimal production
quantity of each component under the pull contract is less than that of centralized system. Then, it designs the coordination
mechanism by introducing the price subsidy policy. Finally, numerical analysis verifies the effectiveness of coordination
mechanism.