Risk Management with Supply Contracts
نویسندگان
چکیده
منابع مشابه
Risk Management with Supply Contracts
Purchase obligations are forward contracts with suppliers. This paper is the first to document that these contracts are a risk management tool and have a material impact on corporate hedging activity. Purchase obligations are used more broadly than traded commodity derivatives, even when firms approach financial distress. Firms that expand their risk management options following the introductio...
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We study the performance of a stylized supply chain where two firms, a retailer and a producer, compete in a Stackelberg game. The retailer purchases a single product from the producer and afterward sells it in the retail market at a stochastic clearance price. The retailer, however, is budget constrained and is therefore limited in the number of units that he may purchase from the producer. We...
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After entering into supply contracts, ...rms often later renegotiate the terms of those contracts. For example, ...rms that obtain market demand information after signing supply contracts may bene...t by renegotiating the contracts to allow buyers facing poor market conditions to purchase less than their contractual commitment and allowing buyers facing favorable conditions to purchase more. Co...
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1 This paper is an invited chapter to be published in the Handbooks in Operations Research and Management Science: Supply Chain Management, edited by Steve Graves and Ton de Kok and published by North-Holland. I would like to thank the many people that carefully read and commented on the ...rst draft of this manuscript: Ravi Anupindi, Fangruo Chen, Charles Corbett, James Dana, Ananth Iyer, Ton ...
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A ̄rm's operations require an input that can only be procured from outside. There are multiple potential suppliers, who privately observe their marginal production costs. The ̄rm faces a revenue function that is increasing and concave in the input quantity. The objective is to identify a procurement strategy that maximizes the ̄rm's expected pro ̄ts. It is known that an optimal strategy can be a...
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ژورنال
عنوان ژورنال: The Review of Financial Studies
سال: 2017
ISSN: 0893-9454,1465-7368
DOI: 10.1093/rfs/hhx051