This paper does some research on the return policy under demand uncertainty , models the theory of re2 turn policy with risk preference of the retailer and supplier. Based on this theoretical model , a numerical example is employed to analyze the influence of risk preference on decision of the participants in a supply chain. From this pa2 per the decision2maker of the supply chain can make a scientific decision by using this model . At last , according to the situation of China , the problem how Chinese corporations use the return policy properly is discussed