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For inventory models that involve continuous price fluctuations and price-dependent demand that arrives in continuous time, we characterize the minimum-variance hedging policies and numerically illustrate their effectiveness.<\/jats:p>","DOI":"10.1561\/0200000073","type":"journal-article","created":{"date-parts":[[2017,12,21]],"date-time":"2017-12-21T08:54:23Z","timestamp":1513846463000},"page":"107-123","source":"Crossref","is-referenced-by-count":2,"title":["Minimum-Variance Hedging for Managing Risks in Inventory Models with Price Fluctuations"],"prefix":"10.1108","volume":"11","author":[{"given":"Caner","family":"Canyakmaz","sequence":"first","affiliation":[{"name":"Ko\u00e7 University ,","place":["Turkey"]}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Fikri","family":"Karaesmen","sequence":"additional","affiliation":[{"name":"Ko\u00e7 University ,","place":["Turkey"]}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"S\u00fcleyman","family":"\u00d6zekici","sequence":"additional","affiliation":[{"name":"Ko\u00e7 University ,","place":["Turkey"]}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"140","published-online":{"date-parts":[[2017,12,21]]},"reference":[{"key":"2026042203175337100_ref001","doi-asserted-by":"crossref","DOI":"10.1017\/CBO9780511806636","volume-title":"Financial Calculus An introduction to derivative pricing","author":"Baxter","year":"1996"},{"issue":"1","key":"2026042203175337100_ref002","doi-asserted-by":"crossref","first-page":"109","DOI":"10.1287\/opre.1100.0862","article-title":"Optimal inventory policies when purchase price and demand are stochastic","volume":"59","author":"Berling","year":"2011","journal-title":"Operations Research"},{"key":"2026042203175337100_ref003","doi-asserted-by":"crossref","first-page":"285","DOI":"10.1287\/moor.1050.0179","article-title":"Optimal Control and Hedging of Operations in the Presence of Financial Markets","volume":"31","author":"Caldentey","year":"2006","journal-title":"Mathematics of Operations Research"},{"key":"2026042203175337100_ref004","unstructured":"Canyakmaz, C., S.\u00d6zekici, and F.Karaesmen (2017). \u201cA Dynamic Financial Hedging Model for an Inventory System with a Stochastic Price Process\u201d. 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