Category: Operations
You only live once
It can be shown that the ensemble average always will overestimate the growth and thus can falsely lead to wrong conclusions.
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The probability distribution of the bioethanol crush margin
In the following we will illustrate some of the risks the bioethanol producer is facing using corn as feedstock. However, these risks will persist regardless of the feedstock and production process chosen.
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The Uncertainty in Forecasting Airport Pax
The uncertainty about the future yearly Pax is quite high. With this as the backcloth for airport planning the stochastic nature of Pax forecasts has to be taken into account when investment decisions are to be made.
The Value of Information
Enterprise risk management only has value to those who know that the future is uncertain
Concession Revenue Modelling and Forecasting
Concessions are an important source of revenue for all airports. An airport simulation model should therefore be able to give a good forecast of revenue from different types of concessions.
Airport Simulation
The basic determinant of an airport’s economics is the passenger forecast. It is the basis for estimation of aircraft movements, investment in terminal buildings, traffic charges, tax free sales etc.
Real options
In real life both for investment decisions and in valuation of companies there are managerial flexibility in the sense that at future points of time there is flexibility in choosing among alternatives.
