Robust strategy for coordination of batch order and option purchase on e-market

Robust strategy for coordination of batch order and option purchase on e-market

0.00 Avg rating0 Votes
Article ID: iaor20081815
Country: China
Volume: 27
Issue: 1
Start Page Number: 107
End Page Number: 110
Publication Date: Jan 2006
Journal: Journal of Northeastern University
Authors: , ,
Keywords: inventory: order policies
Abstract:

In the uncertain environment of B2B e-market, the stability of batch order and flexibility of option purchase are jointly considered to design the robust strategy for the coordination of e-market and traditional market on option contract basis. Under the worst demand scenarios of B2B e-market, the strategies of Stackelberg game in which the seller is the leader and the buyer is the follower are studied. Based on the theory of robust optimization, an algorithm available to the robust Stackelberg solution to both buyer's quantity of order and seller's reservation price and execution price on B2B e-market is put forward. Taking the e-commerce practice of Shanghai Baosteel Yichang Corporation as an example for verification, the robust quantity of order, option contract price and operation cost are worked out through simulating calculation in accordance to the linear and quadratic demand price function.

Reviews

Required fields are marked *. Your email address will not be published.