Supply Chain Management White Papers

The Impact of Options Trading on Supply Chain Management

Overview This paper explores the impact of options on supply chain performance when consumer demand is uncertain. The analysis is based on an environment involving a single supplier and multiple retailers. Each retailer can either buy product directly from the supplier, or purchase options on product. An option gives the retailer the right, but not the obligation, to buy an additional unit of product. As such, the retailer will exercise an option if and only if that unit of product is needed to meet demand.

Further White Paper Details
PublisherIBM File FormatPDF, requires Acrobat Rdr 5
Date PublishedMarch 2004 Downloads10
FormatWhite Papers   
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