Optimal Ordering Policy for Supply Option Contract with Spot Market
Joint Authors
Hou, Xinru
Chen, Haibin
Xu, Xinsheng
Source
Mathematical Problems in Engineering
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-12-09
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Abstract EN
This paper considers the procurement mechanism with two supply channels, namely, an option contract purchase and a spot market.
For the mechanism, under the stochastic demand and the stochastic spot price, we consider the portfolio procurement with the spot trading liquidity and the option speculation respectively.
To maximize the buyer’s profit, we establish two optimal portfolio procurement strategy models for those two scenarios.
Based on the buyer’s cost-benefit analysis, we present a solution method to each model and provide an optimal ordering policy to the buyer.
By the obtained results, we analyze the role of the spot trading liquidity and option speculation in a buyer’s expected profit.
Some numerical experiments are presented to show the validity of the formulated models.
American Psychological Association (APA)
Hou, Xinru& Xu, Xinsheng& Chen, Haibin. 2020. Optimal Ordering Policy for Supply Option Contract with Spot Market. Mathematical Problems in Engineering،Vol. 2020, no. 2020, pp.1-11.
https://search.emarefa.net/detail/BIM-1197116
Modern Language Association (MLA)
Hou, Xinru…[et al.]. Optimal Ordering Policy for Supply Option Contract with Spot Market. Mathematical Problems in Engineering No. 2020 (2020), pp.1-11.
https://search.emarefa.net/detail/BIM-1197116
American Medical Association (AMA)
Hou, Xinru& Xu, Xinsheng& Chen, Haibin. Optimal Ordering Policy for Supply Option Contract with Spot Market. Mathematical Problems in Engineering. 2020. Vol. 2020, no. 2020, pp.1-11.
https://search.emarefa.net/detail/BIM-1197116
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1197116