Skip to main content

A Research on Manufacturing Grid Resource Pricing Strategy Based on the Option Contract

  • Conference paper
  • First Online:
International Asia Conference on Industrial Engineering and Management Innovation (IEMI2012) Proceedings
  • 2063 Accesses

Abstract

According to the option features that manufacturing grid resource has, this paper builds resource pricing model based on the option contract transaction. First the profits of the resource demand-sides gained by purchasing resources through option contract or directly from spot market are compared, then the condition of option contract parameters that should satisfy is obtained and the analytical solution to the optimal contract purchasing quantity for the demand-sides is deduced. Afterwards the optimal parameters of the option contract are solved in programming model of the resource supply-side built by using the game theory. Finally an example is given to illustrate the use of the model and to verify its superiority.

This research is supported by National Natural Science Foundation of China (No.70972083).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 389.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 499.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Bessembinder H, Lemmon ML (2002) Equilibrium pricing and optimal hedging in electricity forward markets. J Finan 57:1347–1382

    Article  Google Scholar 

  • Cheliotis G, Kenyon C, Rajkumar B (2003) Grid economics: 10 lessons from finance, joint technical report, GRIDS-TR-2003-3. IBM Research Zurich and Grid Computing and Distributed Systems Laboratory, Melbourne

    Google Scholar 

  • Chen Xu (2006) Retailer’s procurement decisions for supply chain with options contracts. J Manage Sci China 09(3):17–23

    Google Scholar 

  • Chen X, Zhu C (2007) Real options and supply chain procurement contracts. J Syst Eng 22(4):401–406 (Chinese)

    Google Scholar 

  • Kenyon C, Cheliotis G (2002) Architecture requirements foe commercializing Grid resources. In: Proceedings of the 11th IEEE international symposium on High Performance Distributed Computing (HPDC), pp 215–224

    Google Scholar 

  • Kleindorfer PR, Wu DJ (2003) Integrating long- and short-term contracting via business-to-business exchanges for capital-intensive industries. Manage Sci 49(11):1597–1615

    Google Scholar 

  • Nina Yan, Liguo Zhou (2010) Supply chain option contract coordination with e-market based on hybrid intelligent algorithm. The 2nd IEEE International Conference on Information Management and Engineering (ICIME), pp 713–717

    Google Scholar 

  • Rajkumar B (2002) Economic-based distributed resource management and scheduling for grid computing. Monash University, Melbourne, Apr 12

    Google Scholar 

  • Rajkumar B, Abramson D, Venugopal S (2004) The grid economy, special issue on grid computing. In: Proceedings of the IEEE. IEEE Press, New York 93(3):698–714

    Google Scholar 

  • Shen H, Pang Z (2004) Supply chain coordination via capacity options with uncertain demand and supply. In: Proceedings of the 2004 IEEE international conference on systems, man and cybernetics, vol 7. pp 5997–6002

    Google Scholar 

  • Sheng F, Ji J (2008) Research on sufficient and necessary condition of optimal portfolio and purchasing strategy with multi-options. J Syst Manage 17(3):307–311 (Chinese)

    Google Scholar 

  • Wu DJ, Kleindorfer PR, Jin JE et al (2002) Optimal bidding and contracting strategies for capital-intensive goods. Eur J Oper Res 137(3):657–676

    Article  MATH  Google Scholar 

  • Tao F, Hu Y, Zhou Z (2006) The connotation of manufacturing grid and its key technology. In: 4th International IEEE conference on industrial informatics (INDIN’06), Singapore, 16–18 Aug, pp 293–298

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ling-yu Wu .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Zhang, Xb., Wu, Ly. (2013). A Research on Manufacturing Grid Resource Pricing Strategy Based on the Option Contract. In: Qi, E., Shen, J., Dou, R. (eds) International Asia Conference on Industrial Engineering and Management Innovation (IEMI2012) Proceedings. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38445-5_12

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-38445-5_12

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-38444-8

  • Online ISBN: 978-3-642-38445-5

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics