Financial Hedging Decision on Procurement Risk for Newsvendor Model with Value-at-Risk Constraint

• Main Authors: WEN, Yuan, DING, Qing, CHEN, Jian
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3119; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4118/viewcontent/20430_Financial_Hedging_Decisions_on_Procureme.pdf
• Institution: Singapore Management University

Manufacturers must now deal with increasingly fluctuating procurement prices for commodities and industrial component parts. However, it is hard for them to pass cost increases on to downstream markets efficiently. Therefore, manufacturers have sought to solve this problem with various supply manage...