Value-at-Risk in Bakery Procurement

Abstract

This case study applies value-at-risk methods to a bread baking company to illustrate how it can be used by a commodity processor in reporting risk, evaluating risk reduction alternatives, and setting risk limits. Results indicate that value-at-risk can be a useful tool for managing the price risk exposure in this agricultural processing firm. It provides a single measure of risk exposure and accounts for the multitude of inputs that are correlated and impact the firm's risk. Value-at-risk provides an effective tool in setting risk limits, but should be complimented with management goals, competition, and conduct within the industry.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 20 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.