CEBA 12000 - Commodity Management at Chrysler

CEU: (.8 )

This course is designed to provide a conceptual and practical understanding of why commodity prices change and the strategies for reducing the risks related to pricing variations. The underlying concepts will be discussed in the context of the aluminum market due in part to aluminum’s growing importance in the automotive industry and the presence of a formal exchange. The first part of the course will focus on an understanding of the most significant economic factors that explain why commodity prices in general and aluminum prices, in particular, change. The second part of the course will be devoted to an understanding of various financial strategies, such as hedging, that can be utilized to minimize financial risks associated with price variations.