Wholesale Price Contract Under Exchange Rate Fluctuation And RAW Material Price Risk

With the development of economic globalization,the purchasing activities of transnational enterprises are facing more and more risks.Among them,the exchange rate fluctuation,the fluctuation of the cost of raw materials and market demand uncertainty is likely to bring losses,how to use all kinds of risk response tool to reduce these risks is of important theoretical and realistic significance.Based on the downstream retailers to upstream manufacturers as the background,from the perspective of exchange rate volatility and market risks,combined with the futures that risk coping tools,wholesale purchasing contract research.Third chapter assumes that manufacturers face price risk,exchange rate risk and raw materials demand risk faced by retailers,and three kinds of risk independent each other,the two sides signed the wholesale price contract,manufacturers use futures to hedge currency risk.Examine the retailer's purchasing decisions and the manufacturer's supply decisions,and the impact of the three risks on the supply chain.Results show that the proposed strategy improves the distribution of manufacturers,intercepting the exchange rate risk's influence on the decision variables of manufacturers and retailers,it is proposed that the wholesale price contract,futures,and combination is an effective method of risk management.Fourth Chapter assumes that manufacturers face price risk,exchange rate risk and raw materials and the related,the two sides signed the wholesale price contract,manufacturers use futures to hedge currency risk,investigate retailers purchase decisions and the supply of manufacturers,as well as the exchange rate risk and raw material prices to the influence of supply chain risk.Results show that when the exchange rate risk and the risk of price of raw materials in the positive correlation,use the effect of exchange rate hedging strategies are better than the two unrelated situation,to further improve the manufacturer's output,reduced the retailers are given the wholesale price.Fifth chapter assumes that manufacturers face the exchange rate risk and raw material prices two types of risk,and the two independent,retailers can also choose to buy from the spot market,the two sides signed a wholesale price incentive contract,manufacturers use futures to hedge currency risk.Examine the retailers' purchasing decisions and manufacturers' supply decisions,as well as the impact of exchange rate risk and raw material price risk on the supply chain.The research shows that the wholesale price incentive contract increases the exchange rate hedging ratio and reduces the transaction price compared with the wholesale price contract.Increased profitability for retailers reduces manufacturers' earnings and earnings variance and the risk of the entire supply chain.The existence of the spot market will not affect the degree of currency hedge incentive retailers,the choice of the spot market price for the sensitivity of the manufacturer production the stronger,retailers are given the wholesale price is higher,the higher the profits of retailers and manufacturers.