Every business is exposed to financial risk stemming from commodity price volatility. Risk exposure may be direct from the prices paid for raw materials needed for operations or indirect from higher energy and transportation costs. The purpose of this book is to provide an approach that organizations can implement to manage commodity price volatility and reduce their exposure to financial risk. This topic is important for current and future supply chain professionals due to the significant direct financial effects that price volatility has on profitability, organizational cash flow, the ability to competitively price products, new product design, buyer-supplier relationships, and effective negotiating.
George A. Zsidisin, PhD, CPM, is an associate professor of supply chain management at Bowling Green State University, Ohio. He has published over 50 research and practitioner articles and 2 books that have been extensively cited, many of which focus on how firms can assess and manage supply chain risk. George has taught and led discussions on supply chain risk in various executive education programs in the United States and Europe and is one of the original founders of the International Supply Chain Risk Management Network. Janet L. Hartley, PhD, is a professor and the director of the Supply Chain Management Institute at Bowling Green State University. She has a BS in chemical engineering from the University of Missouri-Rolla and MBA and PhD degrees from the University of Cincinnati. She has published 28 refereed journal articles on supply management topics in journals such as the Journal of Operations Management, the Journal of Supply Chain Management, IEEE Transactions on Engineering Management, and the Journal of Business Research.