Production Capacity Reserve and Supply Chain Coordination Based on Option Contract

Under the e-commerce environment, network direct selling mode is developing rapidly, which an important way for enterprises to reduce logistics costs and storage risks win survival development. In this paper, order dual reserve decision model constructed based on option contract under mode. losses caused by uncertain demand, we investigate manufacturer’s optimal purchase decisions of spot option, as well supplier’s physical proportion in a two-stage supply chain. Besides, role application production capacity are further explored, coordination mechanism chain studied. The results show that method combining alleviates inventory pressure from increases profits supplier, who keeps total unchanged demand risk adjusting capacity. can be realized with certain linear relationship between exercise price within appropriate flexibility range price. Finally, simulations sensitivity analyses conducted support expand model. Our research provides theoretical insights practical guiding significance dealing reducing upstream setting online mode, overcomes defects extends its application.