Purpose – A key process involved in supply chains is a priori evaluation of potential partners, not only in terms of expected cost (which includes exchange rate risk), but also in terms of other risks. These risks can include product failure, producing company failure (such as bankruptcy), and...

Purpose – This paper aims to address how to systematically address vulnerability in a maritime transportation system using a formal vulnerability assessment approach, create quantitative measures of disruption risk and test the effect of mitigating measures. These quantitative data are...

Reviews the literature on capacity planning at strategic, tactical and operational levels but points out that, in practice, many enterprise resource planning systems make unrealistic assumptions for production planning; and the advanced production software packages which can deal with...

Notes the increasing importance of option‐adjusted spread analysis for pricing in the mortgage‐backed securities market and develops a partial differentiation equation method (PDE) for calculation, as an alternative to the Monte Carlo method. Discusses the mathematical theory involved and...

Outlines previous research relevant to the risks involved in residential mortgages and suggests some reasons for the gap between theory and market practice. Develops a model which adds household income, ability to pay problems and mortgage underwriting constraints to the standard pricing models,...

Purpose – The aim of this paper is to use rent and price dynamics in the future cash flows in order to improve real estate portfolio valuation. Design/methodology/approach – Monte Carlo simulation methods are employed for the measurement of complex cash generating assets such as real estate...

Purpose Marketing/finance interface and application of its new insights in marketing decisions have recently found great interest among marketing researchers and practitioners. There is a relatively large body of marketing literature about incorporating modern portfolio theory (MPT) into...

Monte Carlo simulation is one of a number of analytical techniques available to enable managers to assess the risks surrounding capital budgeting decisions. Although it is covered in most texts on financial management, surveys have for many years pointed to only limited use of the technique by...

Purpose – The purpose of this paper is to propose the idea of linking the use of the Monte Carlo simulation with scenario planning to assist strategy makers in formulating strategy in the face of uncertainty relating to service quality gaps for life insurance business, where discontinuities...

An updated guide to risk analysis and modeling Although risk was once seen as something that was both unpredictable and uncontrollable, the evolution of risk analysis tools and theories has changed the way we look at this important business element. In the Second Edition of Analyzing and...