Framework for assessing the sensitivity of productivity measures to exogenous factors and operational decisions

摘要

The present disclosure is directed to a framework for modelling the effects on exogenous factors on an operating plan that captures how a business would react to variability of exogenous factors as well as the effect of simultaneously implementing various operating decisions. The framework can also generate optimal operating plans given variability of exogenous factors and reactive business decisions. The framework offers strategic risk management decision support for a business producing goods that are heavily exposed to raw material prices in the commodity markets. The framework accounts for both exogenous factors as well as operational decisions. Specifically, for example, the framework can model corporate earnings and the impact of expenses, revenue, and profit/loss from financial instruments given uncertain exogenous factors while integrating the effects on earnings of operational decisions made in relation to physical assets, real options, and of finished goods selection.