Financial and operational supply chain risks are often managed independently, by managers in different business units and with widely-varying viewpoints. Yet, differences in incentives often result in a mismatch in priorities and processes. In 2008, BMW established the Raw Material Management...

Cover -- Contents -- Preface -- Acknowledgments -- Section I: Background -- Chapter 1: Introduction to Commodity Price Risk Management -- Chapter 2: Assessing Price Risk Exposure and Risk Tolerance -- Section II: Forecasting Commodity Prices -- Chapter 3: Forecasting Short-Term Commodity Prices...

Agents who acknowledge that their models are incorrectly specified are said to be ambiguity averse, and this affects the prices they are willing to trade at. Models for prices of commodities attempt to capture three stylized features: seasonal trend, moderate deviations (a diffusive factor), and...