Strategy Analysis for Retailer-Leading Supply Chain under Buyback Contract with Focus Theory of Choice

This paper investigates a retailer-leading two-tier supply chain with buyback contract under market demand uncertainty, where the retailer first announces potential maximal order quantity and supplier then provides unit wholesale price to influence retailer’s quantity. In recent years, an increasing number of experimental studies have reported that even in repeated multi-turn games, decisions suppliers viewed as newsvendors deviate significantly from expectation-maximizing options. light this observation, we employ focus theory choice characterize suppliers’ behavioral tendencies theoretically derive optimal prices based on preferences. With these results, further explore how foci may interactions between supplier. We find when takes positive evaluation system decision criterion, optimism degree confidence level negative effect final quantity, must be located most possible upper limit demand. perspective analyze responses their influences retailers’ decision-making. Theoretical numerical analyses gain managerial insights for retailers make faced different