Title :
A Study on Transactional Strategies in the Supply Chain Based on Bilateral Optional Forward Contracts
Author :
Tian Jun ; Chen Da-peng ; Li Xiao-Li
Author_Institution :
Zhengzhou Inst. of Aeronaut. Ind. Manage., Zhengzhou
Abstract :
The fluctuations of market price bring risks to supply chain enterprises, which sign some optional forward contracts in order to reduce these risks. As an effective instrument for risk management, optional forward contract has the character of flexibility and variety. This paper aims to formulate the price of the contract using the option pricing theory and obtain an optimal proportion of forward contracts and the influence factors through the risk evasion model and on the basis of the utility maximization principle.
Keywords :
contracts; pricing; risk management; supply chains; bilateral optional forward contracts; market price; risk management; supply chain enterprises; transactional strategies; utility maximization principle; Aerospace industry; Fluctuations; Forward contracts; Instruments; Pricing; Probability distribution; Risk management; Supply chain management; Supply chains; Waste materials;
Conference_Titel :
Wireless Communications, Networking and Mobile Computing, 2008. WiCOM '08. 4th International Conference on
Conference_Location :
Dalian
Print_ISBN :
978-1-4244-2107-7
Electronic_ISBN :
978-1-4244-2108-4
DOI :
10.1109/WiCom.2008.1452
