A Flexible Supply Contract with Put Options

This paper introduces a flexible supply contract with put options model into a single-period two-stage supply chain with long manufacturing lead-times, short selling seasons and high demand uncertainties, which can make the supplier and the buyer cooperate with each other. The authors will derive the optimal initial order and number of purchased options, and in a numerical study, the supplier’s optimal decision is also obtained. Meanwhile, it is also proved that the profits of decentralized supply chain with this flexible contract is higher than that of the NV model, but lower than that of centralized decision model.

Language

  • English

Media Info

  • Media Type: Web
  • Features: References;
  • Pagination: pp 422-432
  • Monograph Title: CICTP 2016: Green and Multimodal Transportation and Logistics

Subject/Index Terms

Filing Info

  • Accession Number: 01606684
  • Record Type: Publication
  • ISBN: 9780784479896
  • Files: TRIS, ASCE
  • Created Date: Jun 29 2016 3:04PM