Risk Transmission Across Supply Chains

Firms along a supply chain are exposed to risks that emanate from shocks that affect the supply of the commodity at the beginning of the chain, as well as shocks to the demand for the products and services that are produced at the end of the supply chain. These risk exposures tend to depend on production technologies as well as supply and demand elasticities. A key takeaway is that firms that use commodity inputs cannot in general rely on either the historical covariance between input prices and profits or industry practice to determine their strategies for hedging commodity price exposures.

• 저널Production and Operations Management · 30(12) · 4579–4587
• 토픽Market Dynamics and Volatility · Economics and Econometrics
• DOI10.1111/poms.13542
• 저자Sheridan Titman