Abstract：In order to study the impact of risk aversion,We apply the system dynamics method to construct the model and simulate fresh food`s supply chain system. We subdivide the products into fresh products and discounted products so that the model is closer to the actual situation. Our experiment result show that retailers` order quantity decreases when the degree of risk aversion of retailers increases. Moreover the profits of both supply chain members and the overall supply chain decrease. It is proposed that suppliers adopt repurchase contracts and sharing the cost of retaining freshness. These methods can alleviate the negative impact of retailers′ risk aversion and improve the overall supply chain system performance.
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