Supply Chain Contract Supply Chain Contracts are agreement between buyer and supplier on issues like Pricing and volume discounts. Minimum and maximum purchase quantities. Delivery lead times. Product or material quality. Product return polices. We will use the Newsboy model to address the supply chain contract. Earlier we model the Newsboy problem as a Buyback Contracts Wholesale Price c Buy Back Price b Optimal Order size for SA Expected Profit for SA Expected Returns to TF Expected Profit for TF Expected Supply Chain Profit $100 $0 1,000 $76,063 120 $90,000 $166,063 $100 $30 1,067 $80,154 156 $91,338 $171,492 $100 $60 1,170 $85,724 223 $91,886 $177,610 Research on Buy-Back Contract for Supply Chain Coordination with Prospect Theory Abstract: By adopting the prospect theory, this paper explores how loss aversion influences suppliers' buyback policies when retailers are loss-averse.