| Issue |
E3S Web Conf.
Volume 253, 2021
2021 International Conference on Environmental and Engineering Management (EEM 2021)
|
|
|---|---|---|
| Article Number | 03073 | |
| Number of page(s) | 7 | |
| Section | Environmental Equipment Engineering Management and its Technical Application | |
| DOI | https://doi.org/10.1051/e3sconf/202125303073 | |
| Published online | 06 May 2021 | |
Multiperiod ordering model with put option contracts under inflation
School of Economics and Management, Southwest University of Science and Technology, Mianyang, China
a Corresponding author: 892359403@qq.com
b Corresponding author: Lili15682817081@163.com
This paper considers the rising price and the shrinking demand caused by the inflation. To manage these above risks, the firm has a chance to place two types of orders in each period, viz., the firm order and the put options order. This paper formulates a multiperiod ordering model, either without or with put option contracts. Based on stochastic dynamic programming, this paper studies the optimal ordering policy structure in each period and provides an approximation to evaluate the corresponding policy parameters. By taking the case without put option contracts as a benchmark, put option contracts are demonstrated to prompt the firm to enhance the service level and improve the performance.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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