Xin Zhai, Zhongyi Liu, "Risk Hedging in a Supply Chain," International Journal of Electrical Engineering and Computer Science, vol. 2, pp. 52-56, 2020, DOI:
Xin Zhai, Zhongyi Liu. Risk Hedging in a Supply Chain.
International Journal of Electrical Engineering and Computer Science. 2020;2:52-56.
International Journal of Electrical Engineering and Computer Science
E-ISSN: 2769-2507
Volume 2, 2020
Risk Hedging in a Supply Chain
Authors: ,
Abstract: We study two risk hedging strategies, i.e., option contract and advance purchase discount contract, in a twoechelon supply chain. We study the optimal decisions under each contract for both the supplier and the retailer respectively. We derive the conditions under which either contract should be adopted from the supplier’s perspective. We further demonstrate that supply chain coordination could be reached under the option contract.
Pages: 52-56 DOI: *As the DOI is a unique identifier, it is already available in the pdf version.
**The DOI link will be activated in the first midst of January 2026.
WSEAS Transactions on International Journal of Electrical Engineering and Computer Science, E-ISSN: 2769-2507, Volume 2, 2020, Art. #9
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