Supply Chain Profitability Analysis Based on Risk-Sharing

With the development of economic, supply chain risk-sharing strategies have emerged to improve the stability of supply chains. As different supply chains often have different characteristics, sometimes the simultaneous use of multiple risk-sharing strategies can produce better results than a single strategy in improving the overall profitability of the supply chain. In this paper, we construct a supply chain risk-sharing model to study the impact of different risk-sharing strategies on the profitability of a specific secondary supply chain and study the profitability of the supply chain when using both revenue sharing and quantity flexibility strategies compared with a single strategy. The results show that the use of different strategies has different degrees of impact on profitability and their impacts are positive when used appropriately. In addition, the use of multiple strategies together has a greater impact on the overall profitability than the use of a single strategy.