A supply contract model with call options : the case of normally distributed demand | |
| Author | Parida Wipoopinyo |
| Call Number | AIT Thesis no.ISE-12-18 |
| Subject(s) | Option (Contract) Options (Finance) |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science in Industrial and Manufacturing Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Series Statement | Thesis ; no. ISE-12-18 |
| Abstract | The purpose of this research is to analyze the flexible supply contract with call option model in comparison with traditional newsvendor model from retailer perspective, particularly in case of long lead time production, short selling season and high demand uncertaintyin which demand follows normal distribution. The contract analyzed here is for a two stage problem. Inthe first stage, the retailerwho is follower obtains a contract with a set of parameters from supplierand places initial order with a reservation called option.Inthe second stage, based on realized demand, distributor will decide whetherto exercise option or not which is limited up to the number of purchased options. Mathematical model for the contract has been developed and numerical experiments are conducted to help examine the applicability of the interested contract. The results have confirmed the flexible contract with call option can help increase the retailer’s profit in comparison to his profit in the traditional newsvendor model. |
| Year | 2012 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. ISE-12-18 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Systems Engineering (ISE) |
| Chairperson(s) | Huynh Trung Luong |
| Examination Committee(s) | Voratas Kachitvichyanukul;Bohez, Erik L.J. |
| Scholarship Donor(s) | Royal Thai Government Fellowship |
| Degree | Thesis (M. Sc.) - Asian Institute of Technology, 2012 |