Production and Procurement Strategies Under Supply Chain with Random Yield and Stochastic Demand
BAI Yue
Abstract：How to better match the random supply side and the random demand side has been an important subject to supply chain. To solve this issue, a production and procurement strategy model with traditional contract and option contract are built respectively in a single-supplier and single-buyer supply chain. Both the buyer's and the supplier's profit functions are studied. The study shows that the option contract can effectively cope with the risk from the uncertainties of the supply and demand in supply chain and improve both the buyer' s and supplier's expected profits compared with traditional contract.
Keywords：random yieldstochastic demandoption contractsupply chain
Publication Date：2018-01-01
Online Publishing Date：2026-05-22(First online date of this platform, not the publication date of the document)
Pages：7( 28-34 )