Research on information sharing strategy in back-up procurement considering decision-maker’s risk preference

Based on a supply chain system composed of two suppliers and two competing manufacturers with risk preferences, this paper studies the information sharing in the upstream of the supply chain under supply uncertainty. Considering the different risk preference characteristics of the manufacturer, the information sharing strategy in the back-up procurement under supply uncertainty is proposed. Through numerical analysis, it is found that whether the manufacturer makes information sharing decision depends on the output of the main supplier and the cost of information sharing. In addition, when the risk preference of the manufacturer is high, it is less willing to share the information of the main supplier with the backup supplier.