Reducing forward buying through derivatives
Author(s)Foti, Christopher G. (Christopher Grant), 1971-
Massachusetts Institute of Technology. Engineering Systems Division.
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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.
Thesis (M.Eng.)--Massachusetts Institute of Technology, Engineering Systems Division, 2000.Includes bibliographical references (p. 45-46).
DepartmentMassachusetts Institute of Technology. Engineering Systems Division.
Massachusetts Institute of Technology
Engineering Systems Division.