Managing Input Price Volatility at Heritage Family Specialty Foods

摘要

This case considers the difficult task of pricing finished products when input prices are uncertain. This study explores the environment of the rapidly growing food service sector and the position of an innovative new company, Heritage Family Specialty Foods. Risk management strategies are discussed in the context of a small firm that must bid on contracts for finished products when input prices are uncertain. Issues associated with contracting, vertical integration, and break-even pricing are also discussed.