Chapter
Jan 24, 2013

A Flexible and Cooperative Supply Chain Contract Model

Publication: ICLEM 2012: Logistics for Sustained Economic Development—Technology and Management for Efficiency

Abstract

This paper considers supply contract with options downward in a supply chain model consisting of a supplier and a buyer. The supplier provides options at a premium by which the buyer can cancel initial order quantity by exercising options purchased after updating demand information in response to changes in end demand. A two-stage decision strategy is proposed named the supply contract with put options. Moreover, the buyer's expected profit and the supplier's expected profit in such a contract was formulated.

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Go to ICLEM 2012
ICLEM 2012: Logistics for Sustained Economic Development—Technology and Management for Efficiency
Pages: 1194 - 1200

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Published online: Jan 24, 2013

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College of Traffic & Transportation, Southwest Jiaotong University, Chengdu, 610031, China. E-mail: [email protected]
Xieqing Feng [email protected]
College of Traffic & Transportation, Southwest Jiaotong University, Chengdu, 610031, China. E-mail: [email protected]

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