Procurement management using option contracts: unfulfilled demand
Tutor / Supervisor
Zhu, Wanshan
Student
Cortés Argemí, Arnau
Document type
Bachelor thesis
Date
2013
rights
Restricted access - author's decision
Publisher
Tsinghua University
UPCommons
Abstract
This thesis deals with the procurement management problem in a supply chain from the
perspective of the buyer. In this environment, the buyer faces uncertain demand and spot
market price and has to procure in advance from either sellers or the spot market. The main
new contribution of this research is considering another possibility while procuring: not
fulfilling all the demand by paying a penalty cost. A single-period and two stage model is
presented with the chance of considering correlation between demand and spot market. Due to
the similarities between the research proposed by Fu. et. al. [1] and the model presented here
comparisons are made during this work. More interestingly, several studies are developed as
well as a solution proposal for the two stages. Furthermore, a practical meaning is given to the
model by performing a case studio with real data from the spot market with two different types
of commodities: iron ore and steel. To end with, this thesis introduces the concept of not
fulfilling the demand to the discount-off of market price model, presenting a primarily
formulation of a new joint model and opening a new line of research.
Entitat col·laboradora
Qing hua da xue
Participating teacher
- Zhu, Wanshan