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Reducing forward buying through derivatives

Thesis (M.Eng.)--Massachusetts Institute of Technology, Engineering Systems Division, 2000. / Includes bibliographical references (p. 45-46). / 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. / by Christopher G. Foti. / M.Eng.

Identiferoai:union.ndltd.org:MIT/oai:dspace.mit.edu:1721.1/9158
Date January 2000
CreatorsFoti, Christopher G. (Christopher Grant), 1971-
ContributorsJames Masters., Massachusetts Institute of Technology. Engineering Systems Division., Massachusetts Institute of Technology. Engineering Systems Division.
PublisherMassachusetts Institute of Technology
Source SetsM.I.T. Theses and Dissertation
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Format46 p., 4527909 bytes, 4527669 bytes, application/pdf, application/pdf, application/pdf
RightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission., http://dspace.mit.edu/handle/1721.1/7582

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