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Title: |
Research of Wholesale Price Contract and Risk Hedge Strategy under Risk of Demand and Exchange Rate |
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Source: |
International Conference on Engineering and Business Management 2012(Part 2 Enterprise Operation and Management（2）)
(pp 1208-1212)
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Author(s): |
Juan Du, School of Economics and Management, Southwest University of Science and Technology, Mianyang, China, 621010 |
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Abstract: |
Jointly consider the demand risk and exchange rate risk of the global supply chain. With a Two-echelon Supply Chain under global environment for modeling background, this paper establishes a dynamic game model about manufacturer and retailer, gains the results of the equilibrium, and makes a comparative static analysis on the results, studies how the uncertainty of the exchange rate and exogenous demand influence the risk hedge strategy. The results show that the exchange rate risk exposure proportion of manufacturer decreases with an increase in the exchange rate exogenous fluctuation, and decreases with an increase in the demand exogenous fluctuation when manufacturer’s risk aversion coefficient is big enough, the wholesale prices decreases with an increase in the exchange rate exogenous fluctuation, and decreases with an increase in the demand exogenous fluctuation.
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