Optimal Pricing and Ordering Strategies with a Flexible Return Strategy under Uncertainty

To coordinate the supply chain risk caused by demand uncertainty, this paper proposed a flexible return strategy under in which retailer can choose quantity independently put option after selling season, while is usually determined supplier classical strategy. In our novel strategy, exercise price not fixed, and we developed base model of named selective buyback contracts model. We have solved optimal pricing ordering strategies members. Numerical studies demonstrated that with one supplier, adjust profit distribution adjusting price. Compared other strategies, give more power choice, receives compensation from options.