Selection Decision Analysis Of Call Option And Put Option Based Supply Contracts:from The Perspective Of Profit And Risk

In the recent years,with the development of economic globalization,the uncertainty demand and risk of international and domestic markets has become more and more high.This phenomenon has become the focus of supply chain management research.In order to improve the participants of supply chain,especially for innovative products which characterized by long production,short sales cycle and high uncertainty demand,many scholars have proposed option-based supply contracts to solve this problem and they have proved that such contracts effective ways to improve the participants of supply chain.Existing literatures mainly focus on the efficiency of such contracts from the expected profit.As well as some scholars from the risk caused by the option-based.Few papers have concerned about the optimal contract selection among these option-based supply contracts in practical scenarios.For a specific scenario,decision-makers sometimes may be hard to select a proper one among these option-based supply contracts.This paper makes a comparative analysis of the call and put option,and provides some policy recommendations for decision-makers.This paper makes a comparative analysis from three aspects of profit,risk,profit and risk.When considering profit in the same market,the conclusions are as follows:1)option contracts improve the participants of supply chain.2)the option-value of call option is higher than the put option for buyer,opposite to the supplier.3)the coordination of call option is higher than the put option.When considering risk in the same market,the conclusions are as follows:1)as for sensitivity to the market,put option is better than call option.2)put option increase the buyer's profit margin is higher than call option.3)the risk of put option is higher than call option.4)in the presence of risk,the loss of put option is higher than call option.When considering profit and risk in the same market,t the conclusions are as follows:1)the buyer's profit in put option is better than call option.2)the risk of put option is higher than call option.