Research on optimal supply decision of manufacturers considering futures purchase under deferred payment

Abstract

Taking the three-level supply chain consisting of a single supplier, a manufacturer and a strong brand as the research object, the manufacturer's optimal supply decision model is constructed, which considers the futures purchase under the deferred payment of the brand, and it is proved that the optimal solution not only exists but also is unique. Then, the influence of parameter variation on the optimal ordering strategy was analyzed by numerical example simulation and sensitivity analysis. The results show that when the period of deferred payment to the manufacturer is extended and the price discount is strengthened, the manufacturer can purchase from the futures market to lock the price and make up for its income loss through the supplier's delayed payment. Production rate should also be controlled, too high or too low production rate will affect the manufacturer's production cycle.