Supply Chain Option Contracts Research Based On Two Production Modes

The research content of this paper comes from the Foundation for the Author of National Excellent Doctoral Dissertation of PR China (No. 200565).In the supply chain cooperation process, because of the member's selfish, theirs decision-making are often more concerned about the individual's optimal, but whole coordination are neglected, thus leading to"double marginalization", therefore, in addition to improve supply chain flexibility to meet market demand,how to coordinate benefits between the various decision-makers in the supply chain collaborative process is particularly important.Option is commonly instrument to avoid the risk in financial market, option gives holders the right to decide whether to buy (sell) the specific underlying assets period of time in the future, option mechanism as the financial instrument into the supply chain collaborative process, further expands the research idea of supply chain, provides more option to retailers, spreads the risk of the suppliers, encourages suppliers to meet the retailers to actively respond to market requirements, supply chain can make timely reflect to the changes of the market demand, improves the supply chain flexibility, reduces the uncertain risk of supply chain market demand, achieves the optimal of the supply chain overall interest.On the basis of research on supply chain option contracts at home and abroad, we make some research in this article as follows:First, the existing literature about supply chain option contracts at home and abroad are classified, namely: supply chain option contracts are divided into three categories: call option contract, put option contract and bidirectional option contract, on this basis, summaries of research are carried out, analyses shortcomings of current research of supply chain option contracts.Second, we consider the supply chain contract problem under call option between single supplier and single retailer. The supplier have cheap and expensive patterns to produce; analyses the retailer's optimal ordering strategy and expected profit under call option, gives retailer's optimal ordering strategy at the beginning of horizon; at the end of sales season, supplier adopts buy-back policy to repurchase merchandise at certain price.Third, we consider the supply chain contract problem under bidirectional option between single supplier and single retailer. The supplier have cheap and expensive patterns to produce; retailer adopts certainty, call option and put option to order products; at the end of sales season, supplier adopts buy-back policy to repurchase merchandise at certain price; analyses the respective interest of centralized and decentralized supply chain model under bidirectional option.