Abstract

Through incorporating option mechanism, quantity flexible strategy and quick respond strategy into perishable products' supply chain, this paper establishes the gamble model of retailer's fixed order, call option purchase, put option purchase and manufacturer's production under one order and two-period production mode, then gives out retailer's optimal fixed order, call option purchase quantity, put option purchase quantity and manufacturer's optimal production quantity in the first period; comparing with one order and two periods production mode without considering put option, retailer and manufacturer can get higher expected profit and we also give out the condition of achieving supply chain coordination.

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