en و موضوعات مربوط Other Related Subject پژوهشي Research <p>  <table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td><p>  Capacity Reservation, </p><p>  Option Contract, </p><p>  Supplier Selection </p></td></tr></tbody></table><i>A key issue for manufacturing firms is planning for outsourced components. In this research, we have considered a manufacturer in a Make-to-Order production environment who has to outsource a special component from a set of suppliers. One selling season is considered and the manufacturer faces uncertain demand during the selling season. A good strategy for the manufacturer to balance both holding and lost sale costs is to initiate capacity reservation contracts with his suppliers. Thus, unlike the previous researches we have presented a mathematical model based on option mechanism that will help the manufacturer to select appropriate suppliers and order allocation, simultaneously. The considered option mechanism has a two part contract fee structure (option price and exercise price) and it is at the foundation of practical contracts used by different industries. A numerical example is used to illustrate the model and to investigate how option mechanism improves manufacturer's expected profit in comparison with the situation without applying the option mechanism </i><i>. </i></p> Capacity Reservation,Option Contract, Supplier Selection 135 141 http://ijiepr.iust.ac.ir/browse.php?a_code=A-10-1-125&slc_lang=en&sid=1 Iman Nosoohi i.nosoohi@in.iut.ac.ir 180031947532846001014 180031947532846001014 No Department of industrial engineering, Isfahan University of Technology (IUT), Naser Mollaverdi naserm@cc.iut.ac.ir 180031947532846001015 180031947532846001015 Yes Department of industrial engineering, Isfahan University of Technology (IUT)