Foundations and Trends® in Technology, Information and Operations Management > Vol 12 > Issue 2-3

Data and Risk Analytics for Production Planning

Liao Wang, The University of Hong Kong, Hong Kong, lwang98@hku.hk David D. Yao, Columbia University, USA, yao@columbia.edu
 
Suggested Citation
Liao Wang and David D. Yao (2019), "Data and Risk Analytics for Production Planning", Foundations and TrendsĀ® in Technology, Information and Operations Management: Vol. 12: No. 2-3, pp 201-218. http://dx.doi.org/10.1561/0200000086

Published: 14 Mar 2019
© 2019 L. Wang and D. D. Yao
 
Subjects
 
Keywords
G32 Financial Risk and Risk ManagementM11 Production management
Risk managementHedgingOperational riskSupply chain finance
 

Free Preview:

Article Help

Share

Download article
In this article:
1. Motivation and Description of the Problem
2. Modeling Approach and Methodology
3. Results and Insights
4. Further Research
References

Abstract

We examine the classical productional planning model, where a capacity decision that has to be made at the beginning of the planning horizon is the primary means to protect against demand uncertainty. We provide a critique on the model focusing on its profit maximizing objective, its underlying assumptions on demand and related forecasting scheme, and its overall business relevance (or the lack thereof); and we do so in the context of data, risk and analytics. Specifically, we will consider minimizing a shortfall risk relative to a profit target, with a demand model that captures impacts from the financial market and can be learned from data sets that are application specific. With a jointly optimized production and hedging strategy, we show the new model outperforms traditional approaches in risk mitigation as well as in expected profit.

DOI:10.1561/0200000086
ISBN: 978-1-68083-554-0
298 pp. $99.00
Buy book
 
ISBN: 978-1-68083-555-7
298 pp. $280.00
Buy E-book (.pdf)
Table of contents:
Introduction and Conceptual Overview of Contents
Part 1: Supply Chain Finance
Material and Cash Flow in Two-Tier Supply Chain with Trade Credits and Defaults
Financing Suppliers under Performance Risk
Blockchain and other Distributed Ledger Technologies in Operations
Cash Beer Game
Part 2: Financial Hedging and Commodity Risks
A Framework of Hedging Decisions for Supply Chain Partners
Data and Risk Analytics for Production Panning
Risk Management in Commodity Processing Firms: An Equilibrium View
Quadratic Hedging of Commodity and Energy Cash Flows
Optimal Positioning in the Derivative Market: Review, Foundations, and Trends
Part 3: Operational Strategies and Risk Management
Corn, Soybean or Fallow: Dynamic Farmland Allocation Under Uncertainty
Disruption Risk Management in Serial Multi-Echelon Supply Chains: Where to hold Risk Mitigation Inventory and Reserve Capacity
Financial Incentives to Avoid Major Quality Problems in a Supply Chain
Specific Capacity Investment in Supply Chains with Renegotiation

Emerging Technology & Advances in Supply Chain Finance & Risk Management

Emerging Technology & Advances in Supply Chain Finance & Risk Management reflects the state-of-the-art in research thought leadership in supply chain finance and risk management, and it contains great expository pieces on how advanced technologies are shaping supply chains and risk management within them. You will also find ideas on how supply chain finance and risk management can be best taught in our classrooms.

The volume is divided into three parts, each part reflecting a major active research area of the field including: Part 1: Supply Chain Finance; Part 2: Financial Hedging and Commodity Risks; Part 3: Operational Strategies and Risk Management.

Part 1 deals with the broad area of supply chain finance and programs that will better allow for working capital management within supply chains. Part 2 introduces concepts of hedging financial and operational risks due to uncertain commodity prices, fluctuating exchange rates, and volatile interest rates. Emphasis is placed on understanding how financial hedges can be used for hedging relevant supply chain risks in a way that reflects modern view of financial risk management. Part 3 examines topics and solution approaches reflecting the more traditional treatments in the contemporary literature of operational and supply chain risks. This volume provides rich implications for future research directions in efforts to master the new complexities and uncertainties of the global business environment and better understand the impact of advanced technologies in global supply chains.

 
TOM-086

Companion

Foundations and TrendsĀ® in Technology, Information and Operations Management, Volume 12, Issue 2-3 Special Issue: Emerging Technology & Advances in Supply Chain Finance & Risk Management
See the other articles that are also part of this special issue.