Paper Info
Title
Forwarder's Shipping Capacity Option Procurement Policies with Option Trading and Empty Equipment Repositioning
Abstract
We suppose there are two ocean forwarders in the market and they have to make decisions on ordering shipping capacity between port A and B from shipping company before a season starts via options. At the beginning of the selling season, forwarders can trade options with one another according to market demands. But there usually exits empty equipment repositioning problem because of the imbalance demands between port A and B. We focus on finding out how the possibility of such option trading and empty equipment repostioning between two independent ports affect each shipping agency’s optimal order and optimal profit. At first, we don’t consider the option trading between the two forwarders and then we consider the option trading. We make some conclusions at last: there exits a Nash equilibrium, the forwarders’ optimal profit with option trading is higher than without option trading, forwarders’ optimal orders with option trading are all increasing in option’s trading price and decreasing in option’s buying price.
Year
DOI
Venue
2010
10.1109/ICEE.2010.1019
ICEE
Keywords
DocType
Citations 
option trading,shipping capacity,shipping agency,shipping capacity option procurement,optimal profit,ocean forwarders,optimal order,empty equipment,port a,independent port,market demand,empty equipment repositioning,seasonality,supply chain management,profitability,logistics,economics,nash equilibrium,supply chains,procurement,pricing
Conference
0
PageRank 
References 
Authors
0.34
0
2
Name
Order
Citations
PageRank
Xiang-zhi Bu101.01
Zhijian Wang285.22