Title :
Perishable Products´ Supply Chain Coordination Research with Option Contract under Two Periods Production Mode
Author :
Cao, Xiyu ; Yao, Zeyou ; Lu, Ronghua
Author_Institution :
Univ. of Electron. Sci. & Technol., Zhongshan
Abstract :
Through incorporating option mechanism, quantity flexible strategy and quick respond strategy into perishable products´ supply chain, this paper establishes the gamble model of retailer´s fixed order, call option purchase, put option purchase and manufacturer´s production under one order and two-period production mode, then gives out retailer´s optimal fixed order, call option purchase quantity, put option purchase quantity and manufacturer´s optimal production quantity in the first period; comparing with one order and two periods production mode without considering put option, retailer and manufacturer can get higher expected profit and we also give out the condition of achieving supply chain coordination.
Keywords :
contracts; product development; retailing; supply chain management; call option purchase; gamble model; option contract; perishable products; put option purchase; retailer fixed order; supply chain coordination research; two-period production mode; Educational institutions; Flexible manufacturing systems; Forward contracts; Manufacturing automation; Production systems; Pulp manufacturing; Risk analysis; Supply chain management; Supply chains; Virtual manufacturing; Two-period production; coordination; option; perishable products´ supply chain;
Conference_Titel :
Automation and Logistics, 2007 IEEE International Conference on
Conference_Location :
Jinan
Print_ISBN :
978-1-4244-1531-1
DOI :
10.1109/ICAL.2007.4338876