Chapter 6

Currency Rate Volatility and Small and Medium Enterprises

The purpose of this book has been to present a flexible process that supply chain professionals can use to develop strategies for managing commodity price risk. As we have discussed, there are numerous techniques that you can use to manage this risk. The most effective approach depends on various factors such as overall spend levels, risk tolerance and philosophy, product and production process design flexibility, the existence of futures markets, availability of capital, and capability and willingness to hold inventory, to name a few. In this book we focused on the price volatility of commodities, the basic principles of short- and long-term forecasting using technical and ...

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