NDLI: Application of Real Options to the Risk Management of Supply Chain

Content Provider	IEEE Xplore Digital Library
Author	Xu Min-li Jian Hui-yun
Copyright Year	2007
Description	Author affiliation: Central South Univ., Changsha (Xu Min-li; Jian Hui-yun)
Abstract	Risk management is very important to supply chain management. Managers can reduce supply chain risk by operations management and financial management. Many researchers studied the supply chain risk by using operations management, but only a few authors analyzed financial management applied to risk management of supply chain. Few researchers use the real options as a tool to study supply chain risk. In a supply chain, the right to return the unsalable products to the suppliers is a kind of option which is valuable. In this study, we add option to the normal order and try to manage the relationship between distributors and manufacturers with more flexibility. The rights of purchasing and the rights of returning the unsalable products to the supplier are two kinds of options. We choose a one-manufacturer n-distributor supply chain with a short life-cycle product to study. A mathematical model is developed for the manufacturer and distributor to make decision. Monte Carlo simulation is used to simulate the decision. Numerical results are given. The novelty of the paper is that two kinds of options (call option of ordering products and put option of returning the unsalable products) are added to the model and Monte Carlo simulation are applied to simulate the order policy. The research will do some help to the manufacturer and the distributors for their production and distribution.
Starting Page	722
Ending Page	727
File Size	3033212
Page Count	6
File Format	PDF
ISBN	9787560322780
DOI	10.1109/ICMSE.2007.4421931
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2007-08-20
Publisher Place	China
Access Restriction	Subscribed
Rights Holder	HARBIN INSTITUTE OF TEC
Subject Keyword	Supply chain management Supply chains Financial management real options optimum order policy Exchange rates Production Marketing and sales Dynamic programming Risk management Virtual manufacturing Contracts Monte Carlo simulation unsalable products
Content Type	Text
Resource Type	Article

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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