2012•Supply chain management reviewRequires access
A strategy for managing commodity price risk
George A. Zsidisin, Janet L. Hartley
Open publisher page 17 citations
Abstract
Just about every organization is exposed to price changes associated with the commodities they acquire for their operations. These price movements can detrimentally affect profitability, budgeting, cash flow, and overall organizational performances. This article puts forth a flexible process that companies can implement to manage commodity price volatility. It begins by understanding your risk exposure and level of risk tolerance.