Title :
Options procurement and pricing optimization of supply chain in the presence of spot market
Author :
Ying Liu ; Yin-ping Mu
Author_Institution :
Sch. of Manage. & Econ., Univ. of Electron. Sci. & Technol. of China, Chengdu, China
Abstract :
This paper analyzes the optimal decisions in a risk-averse supplier-retailer supply chain in the presence of spot market. By introducing option contract, the paper establishes the mean-variance utility model for the retailer and the supplier respectively. Finally, the paper analyzes the optimal procurement financial allocation strategy (e.g. option, firm order, or spot market purchases quantities) for the retailer and the optimal production quantity and pricing strategies for the supplier.
Keywords :
contracts; pricing; procurement; statistical analysis; supply chain management; mean-variance utility model; optimal procurement financial allocation strategy; option contract; options procurement; pricing optimization; pricing strategy; production quantity; risk-averse supplier-retailer supply chain; spot market; Forward contracts; Joints; Pricing; Procurement; Supply chains; financial allocation; option; spot market; supply chain;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2013 10th International Conference on
Conference_Location :
Hong Kong
Print_ISBN :
978-1-4673-4434-0
DOI :
10.1109/ICSSSM.2013.6602514
