Research On Supply Chain Coordination Under Disruption With Option Contract

In recent years, frequent disruptions had an enormous impact on the enterprise and supply chain management. It not only caused great fluctuations in demand, raw material supply, production equipment and understaffing, but also broke down the original well-functioning supply chain, and threatened the enterprises'survival and development. In order to effectively manage the supply chain achieve the best overall performance under disruptions, their activities must be coordinated with a manner of high degree of cooperation. Supply chain contract, as one of the main mechanisms of Supply chain coordination, has become a very important issue under disruption in the supply chain management.With the recent financial theory in supply chain applications, the role of option contract in the supply chain ordination attracts more and more attention. it has the following advantages in the supply chain management: flexibility in the supply channel coordination, risk sharing and information sharing. Therefore, study on the supply chain coordination under disruption with option contract has great practical significance.In this paper, based on previous studies, study further the supply chain coordination under disruption with option contract in different market environments. The article's main points of research and innovation are summarized as follows:1) Study how to coordinate supply chain under disruption with option contract. Based on baseline option contract coordination model, establish option contract coordination model under centralized and decentralized supply chain, and achieve the optimal order quantity, wholesale price, option exercise price and option price. Finally, show the good capacity of option contract on withstanding disruption through the specific example analysis.2) Study how to coordinate supply chain under disruption with option contract in the environment with contract market and spot market. Based on baseline option contract coordination model, establish option contract coordination model. Through analysis on capacity of supplier, option quantity, option prices, option exercise price and ordering quantity of retailer, discuss how to coordinate the supply chain under disruption. Finally, show the good capacity of option contract on withstanding disruption in different market environment through the specific example analysis.