Option contracts for products with seasonal disruption
option contracts, seasonal products
This paper studies the effectiveness of implementing option contracts for the procurement of seasonal products, subject to short selling season, demand uncertainty, and supply-side disruption. The research intends to show how profitability and product availability can be enhanced both locally and globally by combining different supply contracts such as fixed price contracts and option contracts. In particular, the paper aims to identify business settings with respect to disruption parameters, demand uncertainties, and option contract pricing under which the supply contract could improve the overall supply chain performance.
Son, J. (2022). Option contracts for products with seasonal disruption. International Symposium on Logistics (ISL) Proceedings. July 2022, Dublin, Ireland. https://www.islconf.org/wp-content/uploads/2022/08/ISL-2022-PROCEEDINGS-1.pdf
All Rights Reserved