Selection Analysis Of Supply Contracts Based On Call Option Put Option And Duoptions

In recent years, there is a growing tendency for enterprise to combining their online e-commerce with physical retail outlets. With the continuous expansion of online marketing channels, the operating of multi-channel parallel makes the enterprise' internal supply chain management and operation more complex. Products with long manufacturing lead-times,short selling seasons and high demand uncertainties which making it difficult for managers to predict the market demand of consumers in different channels with different competitive environments. Facing the operation like such complex supply chain, contract economics provides us a way to coordinate the supply chain. That is application of one-way option or two-way option to deal with a variety of changing market environment. A large number of studies have shown that many one-way and two-way options contracts can improve the performance of the supply chain in varying degrees. Therefore, with more and more options contracts putting forward, the large number of buyers in the market will face a very difficult problem. The buyer should choose which option in many one-way and two-way options gradually become a major obstacle before using of the option. Due to the cost by using the option, the buyer cannot always buy and keep multiple options at the same time. Therefore,the analysis of the differences between the options contracts from the buyer's perspective is critical to the large number of buyers in the market. In addition, due to the longer lead time demand forecast information , the application of options relative to the actual demand may have a greater error in the beginning of the sale season, that is. the profitability of the contract model at the beginning of the sales season is lower than that of the newsboy model.In other words,the buyer will have risk and the risk of the application of different options contract is not known, so the article will analysis the SCCO, SCPO and SCDO contract from the perspective of profits and risks.First of all, we build the call option contract, put option contract, double option contract model, solving the expected profit function of the buyer, and the expression of the optimal decision is presented. Then we respectively under the two kinds of market form of set value analysis to compare the different options of the contract from the buyer's perspective. In the example, we compare the flexibility of different option contracts and the buyer value respectively. The study found that for lower-margin products, the buyer choose the option which can adjust the function of downwards can obtain higher option value, and for a higher-margin product the buyer choose the option which can adjust the function of upwards can obtain a higher option value.In addition, the risk of application option for the buyer's is studied and the mathematical expression of the risk is established. Moreover; the change of the risk corresponding to the change of the different parameters is studied and the risk of the different option contracts is compared and analyzed. Finally, this paper also considers the buyer's option decision which comprehensive profit and risk and gives the comprehensive profit and risk calculation method.Besides, this paper also studies the optimal of buyer's option decision which comprehensive profit and risk when the parameter changes. At the end of the article, draw the relevant conclusions.