Commodity Price Volatility (CPV) management is becoming extremely important both from an academic... more Commodity Price Volatility (CPV) management is becoming extremely important both from an academic and a practitioner perspective, even if from the screening of the literature it turns out that there are few works focusing on how to manage CPV. Such works are limited to either outlining an approach to assess a company's risk exposure or identifying and simply describing the most common CPV mitigation strategies. In fact, these strategies are not assessed and benchmarked. The aim of this study is to accomplish this objective, focusing on two of the most common non-financial and supply chain-driven CPV mitigation strategies. The main contribution of the present research is the development of a model that is easy to implement and that will support companies to (i) assess and manage their CPV and its inherent risk on their profitability and (ii) select the proper mitigation strategy, on a commodity-by-commodity base.
Abstract. Put-or-pay agreements are contractual structures that can be used to allocate risks dur... more Abstract. Put-or-pay agreements are contractual structures that can be used to allocate risks during the operating period in a project finance transaction. Put-or-pay contract obliges the guarantor either to put predefined minimum amounts of inputs at a fixed price for a specific period, ...
The purpose of this paper is to develop a model for the quantification of the costs and benefits ... more The purpose of this paper is to develop a model for the quantification of the costs and benefits associated to a specific supply chain risk management strategy, namely the product postponement strategy (PP). To do this we adopt a real option-based approach and apply the model to a numerical example. The application will show the usefulness of the model in supporting the managers' decision making process on assessing the probabilistic advantages of adopting the PP in risky environments, specifically under conditions of demand and supply disruption.
ABSTRACT: We address the auction based day ahead electricity generation market and present a simu... more ABSTRACT: We address the auction based day ahead electricity generation market and present a simulation model employing the Nash equilibrium notion. The model modifies a previous formalism proposed in the related literature and employs empirical data distributions of the market clearing price as registered by the market independent system operator. The model is effective when power suppliers with different generation capacities are considered, and can forecast the market competitiveness in different scenarios with ...
Commodity Price Volatility (CPV) management is becoming extremely important both from an academic... more Commodity Price Volatility (CPV) management is becoming extremely important both from an academic and a practitioner perspective, even if from the screening of the literature it turns out that there are few works focusing on how to manage CPV. Such works are limited to either outlining an approach to assess a company's risk exposure or identifying and simply describing the most common CPV mitigation strategies. In fact, these strategies are not assessed and benchmarked. The aim of this study is to accomplish this objective, focusing on two of the most common non-financial and supply chain-driven CPV mitigation strategies. The main contribution of the present research is the development of a model that is easy to implement and that will support companies to (i) assess and manage their CPV and its inherent risk on their profitability and (ii) select the proper mitigation strategy, on a commodity-by-commodity base.
Abstract. Put-or-pay agreements are contractual structures that can be used to allocate risks dur... more Abstract. Put-or-pay agreements are contractual structures that can be used to allocate risks during the operating period in a project finance transaction. Put-or-pay contract obliges the guarantor either to put predefined minimum amounts of inputs at a fixed price for a specific period, ...
The purpose of this paper is to develop a model for the quantification of the costs and benefits ... more The purpose of this paper is to develop a model for the quantification of the costs and benefits associated to a specific supply chain risk management strategy, namely the product postponement strategy (PP). To do this we adopt a real option-based approach and apply the model to a numerical example. The application will show the usefulness of the model in supporting the managers' decision making process on assessing the probabilistic advantages of adopting the PP in risky environments, specifically under conditions of demand and supply disruption.
ABSTRACT: We address the auction based day ahead electricity generation market and present a simu... more ABSTRACT: We address the auction based day ahead electricity generation market and present a simulation model employing the Nash equilibrium notion. The model modifies a previous formalism proposed in the related literature and employs empirical data distributions of the market clearing price as registered by the market independent system operator. The model is effective when power suppliers with different generation capacities are considered, and can forecast the market competitiveness in different scenarios with ...
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