- October 26, 2007 - 16:00
- ZLC, Lecture Room A1
Cass Business School · City University of London
“Supply Contract Fragility Risk”
In this talk, Prof. Haksöz will present results in his ongoing research on strategic value of options in mitigating supply contract fragility risk. Specifically, he will focus on the “contract breach” faced by the commodity buyers who are procuring via long-term contracts. The contract breach by the commodity sellers becomes more pronounced and financially distressing with increasing liquidity and transparency of spot markets that are becoming easier to reach for sellers who may opt out for profitable trading. In such a setting, he will show how an explicit design and valuation of an “abandonment option” in the contract negotiation stage can be used to manage the contract breach risk; hence create value for the supply chain.
Dr. Çagri Haksöz is a member of the operations management faculty at Cass Business School, City University of London, UK. His current research focuses on managing risk in global supply chains, design and development of strategic procurement contracts. His publications have appeared in Operations Research, IIE Transactions, and the Journal of Operations Research Society. He has also published managerial comments in the Wall Street Journal and the Financial Times on contract breach and quality risks. He has been teaching for the NYU-Stern and Cass MBA programmes a variety of courses such as Competitive Advantage from Operations, Decision Models, Supply Chain & Logistics Management, and Management Science. Dr. Haksöz holds BSc degree in Industrial Engineering from Bilkent University, Turkey; MPhil. and Ph.D. degrees from Stern School of Business of New York University in operations management.