global market to hedge against foreign exchange risk.
Operational hedging uses strategic or tactic approaches to
mitigate uncertainties that a cooperation might incur. There
are several ways to categorize operational hedging
approaches. Miller (1992) classified different operational
hedging approaches into five groups which are avoidance,
control, cooperation, imitation and flexibility. Tang (2006)
proposed four basic approaches for supply chain risk
management (SCRM), i.e. supply management, demand
management, production management and information
management. These classifications provide general ideas for
researchers and managers to design their own strategies.
Since different industry has its own characteristics, which
strategies is more suitable varies from one to another.