The Research On Coordination Mechanism Of Option Contract In Supply Chain Management

In today's increasingly fierce inter-enterprise competition,the effective implementation of supply chain management can accurately grasp customer needs,reduce the transaction cost of the overall supply chain,and achieve the optimal overall performance of the supply chain.In the supply chain,each node enterprise has its own decision goal,and there are some different levels of conflicts among the members in the aspects of distribution and risk-taking.The interests of each member enterprise are often inconsistent with the overall interests of the supply chain,which will affect the profits of the whole supply chain and its members.Therefore,it is of great significance to design the supply chain contract reasonably so as to improve the overall performance of the supply chain and coordinate the interests of the members scientifically.There is often a big gap between the procurement demand forecast and the actual one in telecom supply chains.Thus a supplier often has to undertake such operating risks as overstock or emergency overtime hours alone in the operator-dominated supply chain.Using the research tool of option contract,this paper first establishes two kinds of supply chain option contract mechanisms dominated by suppliers and retailers,and finally realizes the coordination of supply chain.Then a new purchase option model is designed according to characteristics of a telecom supply chain procurement process,and the supply chain coordination under supplier's fairness concern is realized.The validity of the option contract is verified by an example and the option coordination mechanism can promote the friendly cooperation between the decision-makers within the supply chain.It is of great significance to the optimization of the purchasing process of the telecom operators and the reduction of the operation risk of the suppliers.