Zhao, Yingxue; Ma, Lijun; Xie, Gang; Cheng, T.C.E. - In: European Journal of Operational Research 229 (2013) 2, pp. 375-381
In this paper we develop a supply contract for a two-echelon manufacturer–retailer supply chain with a bidirectional option, which may be exercised as either a call option or a put option. Under the bidirectional option contract, we derive closed-form expressions for the retailer’s optimal...