The Optimal Procurement Strategies for Online Spot Markets with B2B E-Market

Author

Li Xiao-Li

Author_Institution

Zhengzhou Inst. of Aeronaut. Ind. Manage., Zhengzhou, China

fYear

2009

fDate

20-22 Sept. 2009

Firstpage

1

Lastpage

4

Abstract

The forward contracts have recently emerged for a broad range of commodities and many companies have started to utilize them in addition to their traditional procurement via B2B e-market. This kind of procurement makes the most of the convenience of online e-market and function of risk evasion via forward contracts. We develop and solve mathematical models that determine the optimal order proportion to purchase via forward contracts and the optimal proportion to purchase via online spot e-markets. Considering the time value of the fund, this paper analyzes the pricing of the forward contract upon the floating interest rate. Based on the pricing of the forward contracts, we can make further analysis on the decision model of the enterprises´ procurement strategy in B2B e-market.

Keywords

computer purchase; electronic commerce; marketing; pricing; procurement; B2B e-market; forward contracts; online purchase; online spot markets; optimal order proportion; optimal procurement strategies; pricing; risk evasion; Aerospace industry; Costs; Economic indicators; Forward contracts; Instruments; Mathematical model; Pricing; Procurement; Supply chains; Transportation;

fLanguage

English

Publisher

ieee

Conference_Titel

Management and Service Science, 2009. MASS '09. International Conference on

Conference_Location

Wuhan

Print_ISBN

978-1-4244-4638-4

Electronic_ISBN

978-1-4244-4639-1

Type

conf

DOI

10.1109/ICMSS.2009.5302531

Filename

5302531