• View the Talks
• 57 min
  1. Operations strategy: a decision and evaluation framework

  • Prof. Jan A. Van Mieghem
• 32 min
  2. Operations strategy: competition, competencies & trade-offs

  • Prof. Gad Allon
• 57 min
  3. Capacity strategies

  • Prof. Brian Tomlin
• 43 min
  4. Inventory and supply chain strategies

  • Prof. Jing-Sheng Song
• 34 min
  5. Flexibility

  • Dr. Jiri Chod
• 34 min
  6. Operational and financial hedging

  • Prof. John R. Birge
• 51 min
  7. Flow optimization strategies

  • Prof. Jérémie Gallien
• 32 min
  8. Sourcing strategies

  • Dr. Donald Rosenfield
• 61 min
  9. Contracting in a supply chain

  • Prof. Martin A. Lariviere
• 26 min
  10. Innovation and new product development (INPD)

  • Prof. Vish Krishnan
• 46 min
  11. Service operations strategies

  • Prof. Richard Metters
• 47 min
  12. Understanding recurrent and disruptive risk in supply chains

  • Prof. Sunil Chopra
• 40 min
  13. How high velocity organizations get ahead and stay ahead

  • Dr. Steven J. Spear
• 12 min
  14. The encroachment framework 1

  • Prof. Bo van der Rhee
  • Prof. Glen Schmidt
• 8 min
  15. The encroachment framework 2

  • Prof. Bo van der Rhee
  • Prof. Glen Schmidt
• 31 min
  16. Sustainability in operations

  • Prof. Dr. Arnd Huchzermeier
• 38 min
  17. Leadership in middle management and operations

  • Prof. Christoph H. Loch
• 19 min
  18. Caterpillar bundles to win: operations strategy in action

  • Prof. Sridhar Tayur

Printable Handouts

PDF

Navigable Slide Index

1. Introduction
2. Motivation
3. Outline
4. Preliminary discussion: hedging
5. Risk management and hedging
6. Examples of hedges
7. Operational hedge example
8. Production hedge as call option
9. Hedge comparisons
10. Implications for valuing hedges
11. Imperfections and operational valuation
12. Evaluation without capacity limit
13. Evaluation with capacity limit
14. Other operational effects
15. Farmer's example
16. Futures contracts as hedges
17. Futures for the farmer
18. Farmer's operational hedge
19. Farmer's silo hedge - expected returns
20. Copper miner's example
21. Copper hedging
22. Copper futures?
23. Best financial hedge for copper mine
24. Overall observations
25. Operational flexibility and foreign exchange risk
26. Alternative operations
27. Valuing the alternatives
28. Value of flexible capacity
29. Flexible capacity results
30. General cases
31. Earnings and operations
32. Use of risk criterion
33. Key considerations
34. Hedging takeaways
35. Conclusions
36. References
37. Thank you

Topics Covered

• Risk management and hedging definitions
• Foreign exchange risk mitigation alternatives
• Production as an option
• Comparisons of operational and financial hedges
• Capacity evaluation
• Hedging with storage
• Hedging with variable production
• Flexible capacity evaluation
• General risk reduction strategies

Links

Series:

• Operations Strategy

Categories:

• Finance, Accounting & Economics
• Technology & Operations

Talk Citation

Publication History

• Published on December 6, 2012