We study how to manage commodity risks (price and volume) via procurement and financial hedging for a value-at-risk (VaR) risk-averse newsvendor. Facing stochastic procurement cost from the commodity market, the firm decides on its financial hedging strategy contingent on the procurement cost...

We consider the optimal integrated capacity and financial hedging strategies for a downside risk-averse global firm that faces multiple demand and foreign exchange rate risks. The firm maximizes the expected profit while controlling its profit-risk through a Value-at-Risk (VaR) constraint, which...

Temporary help agencies are among the largest employers of American workers today. Depending upon the interpretation, the Bureau of Labor Statistics counts between 3 and 30 million Americans in contingent and part-time work arrangements. We model firms' use of contingent labor in maximizing...