Reducing forward buying through derivatives
Name
45274604-MIT.pdf
Description
Full printable version
Size
2.57 MB
Format
Adobe PDF
Checksum (MD5)
e487be604d0d4649cea67a3a22409b47
Author(s)
Foti, Christopher G. (Christopher Grant), 1971-
Advisor(s)
James Masters.
Date Issued
2000
Publisher
Massachusetts Institute of Technology
Abstract
This thesis examines the potential reduction of speculative inventory, commonly known as "forward buying", through the use of derivatives options, similar to those used on commodities exchanges. The reinforcing cycle of overbuying on promotion, which leads companies and industries into inescapable cycles of capacity excess & shortage, is explored and a framework for breaking free through the sale of call options on promoted products is proposed. Further speculation on the relevance of derivative instruments to Internet Exchanges and Collaborative Planning, Forecasting and Replenishment (CPFR) is advanced.
Description
Thesis (M.Eng.)--Massachusetts Institute of Technology, Engineering Systems Division, 2000.
Includes bibliographical references (p. 45-46).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
Terms of Use
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