Improved forward buying of commodity materials

  title={Improved forward buying of commodity materials},
  author={Andrew S. Manikas and James R. Kroes},
  journal={International Journal of Production Research},
  pages={4568 - 4583}
This research presents the Enhanced Commodity Forward Buy (ECFB) heuristic, a new method for commodity purchasing, which allows strategic forward buying of commodities for products that include commodity components or materials. The ECFB addresses limitations of existing methods by considering stochastic demand and stochastic commodity prices for products that contain both commodity and non-commodity materials. We conduct a simulation test of the new heuristic on 10 commodity indices using… Expand
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