| Tekijä: | Ritchken, P. H. Tapiero, C. S. |
| Otsikko: | Contingent claims contracting for purchasing decisions in inventory management. |
| Lehti: | Operations Research
1986 : NOV-DEC, VOL. 34:6, p. 864-870 |
| Asiasana: | INVENTORY CONTROL CORPORATE PURCHASING HEDGING |
| Kieli: | eng |
| Tiivistelmä: | A variant of the theory of option pricing as applied to inventory planning is developed. A risk management approach that uses negotiated option contracts for hedging against price and quantity uncertainty in inventory procurement is considered. Conditions are derived for the inclusion of options in inventory control as a function both of managerial attitudes toward risk and of the correlation between price and demand. It is illustrated how such contingent claims can mesh with purchasing orders/inventory building in an effective risk-management controlled program. |
SCIMA