Supply Chain Coordination Of Competing Retailers Under Option Contract

With the development of global production and procurement and leanproduction becomes a global trend, supply chains are getting more fragile.This paper uses the Contract Theory、Game Theory、Financial Engineeringto study the coordination of competing retailers under option contractscombined with theoretical analysis and numerical analysis.The main research of this paper is as follows:(1) Establish the basic model of "single manufacture-multiple retailers"under option contract. Comparing the newsvendor model and optioncontract model of the optimal order quantity and profit. Option contractcan increase the flexibility and profit of the supply chain.(2) Establish the model of "single manufacture-multiple retailers"under option contract when disruption happens. When no disruptionhappens, the decisions of manufactures and retailers are discussed. Afterthe disruption happens, the retailers will decide whether to reorder on themarket situation, and the manufacture can decide whether to increase production according to retailers’ decision to maximize income.