Supply Chain Bilateral Coordination with Option Contracts under Inflation Scenarios
Joint Authors
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2015, Issue 2015 (31 Dec. 2015), pp.1-16, 16 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2015-05-11
Country of Publication
Egypt
No. of Pages
16
Main Subjects
Abstract EN
There exist obvious changes in price and demand during the inflationary period, both of which are regarded as the key factors leading to supply chain uncertainty.
In this paper, we focus our discussion on price increase and demand contraction caused by inflation, integrate the effect of inflation and option contracts within the model framework, and analyze how to use option contracts to achieve supply chain coordination under inflation scenarios.
We consider a one-period two-stage supply chain consisting of one supplier and one retailer and explore the effect of inflation on the optimal ordering and production decisions under three different types of contracts: wholesale price contracts, option contracts, and portfolio contracts.
Moreover, we explore the impact of option contracts on the supply chain through using wholesale price contracts model as the benchmark.
We find that the retailer prefers adopting portfolio contracts, but the supplier prefers providing option contracts under inflation scenarios.
Ultimately, option contracts will be implemented owing to the supplier’s market dominant position.
In addition, we discuss the supply chain bilateral coordination mechanism with option contracts from the perspectives of two members and derive that option contracts can coordinate the supply chain and achieve Pareto improvement under inflation scenarios.
American Psychological Association (APA)
Wan, Nana& Chen, Xu. 2015. Supply Chain Bilateral Coordination with Option Contracts under Inflation Scenarios. Discrete Dynamics in Nature and Society،Vol. 2015, no. 2015, pp.1-16.
https://search.emarefa.net/detail/BIM-1060535
Modern Language Association (MLA)
Wan, Nana& Chen, Xu. Supply Chain Bilateral Coordination with Option Contracts under Inflation Scenarios. Discrete Dynamics in Nature and Society No. 2015 (2015), pp.1-16.
https://search.emarefa.net/detail/BIM-1060535
American Medical Association (AMA)
Wan, Nana& Chen, Xu. Supply Chain Bilateral Coordination with Option Contracts under Inflation Scenarios. Discrete Dynamics in Nature and Society. 2015. Vol. 2015, no. 2015, pp.1-16.
https://search.emarefa.net/detail/BIM-1060535
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1060535