Fresh Produce Retailer's Options Ordering Decisions on Risk Elusion

摘要

The Options Contracts were introduced into the fresh produce retailer's ordering model, and the huge circulation wastages were taken into account the two stage model in one period. Firstly, it is supposed that the demand would be affected by the produce's fresh degree, and then the retailer's procurement models both without options case and with options case were built. Secondly, the "stocking factor" method was introduced into models, the optimal ordering quantity as well as the maximum profit was proved to be exist and only with options case. Furthermore, the retailer can get a higher maximum profit with options case than without options case. Finally, the conclusion after numerical study is gained that the retailer's maximum profit is positive correlative to the options executing price, when the retail price is steadiness.