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Risk Transmission Across Supply Chains

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  • Sheridan Titman

Abstract

Firms along a supply chain are exposed to risks that emanate from shocks that affect the supply of the commodity at the beginning of the chain, as well as shocks to the demand for the products and services that are produced at the end of the supply chain. These risk exposures tend to depend on production technologies as well as supply and demand elasticities. A key takeaway is that firms that use commodity inputs cannot in general rely on either the historical covariance between input prices and profits or industry practice to determine their strategies for hedging commodity price exposures.

Suggested Citation

  • Sheridan Titman, 2021. "Risk Transmission Across Supply Chains," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4579-4587, December.
    • Handle: RePEc:bla:popmgt:v:30:y:2021:i:12:p:4579-4587
    DOI: 10.1111/poms.13542
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    References listed on IDEAS

    as
    1. M. Cecilia Bustamante & Andres Donangelo, 2017. "Product Market Competition and Industry Returns," The Review of Financial Studies, Society for Financial Studies, vol. 30(12), pages 4216-4266.
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    Cited by:

    1. Tingqiang Chen & Ruirui Zhu & Lei Wang, 2024. "Risk Transmission in Low-Carbon Supply Chains Considering Corporate Risk Aversion," Mathematics, MDPI, vol. 12(13), pages 1-28, June.
    2. Nicola Secomandi & Sridhar Seshadri, 2021. "Introduction to the Focused Issue on the POM‐Finance Interface in Commodity and Energy Markets," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4566-4567, December.
    3. Peter Ritchken, 2021. "Reflections on “Risk Transmission Across Supply Chains”," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4590-4592, December.
    4. Zhang, Wen & Yan, Shaoshan & Li, Jian & Tian, Xin & Yoshida, Taketoshi, 2022. "Credit risk prediction of SMEs in supply chain finance by fusing demographic and behavioral data," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    5. Derek W. Bunn, 2021. "Observations on “Risk Transmission Across Supply Chains”," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4588-4589, December.

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