Operations Research, Systems Engineering and Industrial Engineering Commons^™

The Floating Contract Between Risk-Averse Supply Chain Partners In A Volatile Commodity Price Environment, Mojisola Kike Otegbeye

Dissertations

In this dissertation, two separate but closely related decision making problems in environments of volatile commodity prices are addressed. In the first problem, a risk-averse commodity user's purchasing policy and his risk-neutral supplier's pricing decision, where the user can purchase his needs through contract with his supplier as well as directly from the spot market, are analyzed. The commodity user is assumed to be the supplier's sole client, and the supplier can always expand capacity, at a cost to the user, to accommodate the user's demand in excess of initially reserved capacity.

In the more generalized second problem, both parties …