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The operations‐finance interface (OFI) jointly optimizes material, monetary, and information flows under intricate sources of uncertainty. To sketch the broad landscape in this emerging and interdisciplinary field, this study synthesizes literature across diverse themes and dispersed methodologies, screens systematically the research progression from original foundations to recent contributions in each major research stream, and thereby advocates future research innovations on prospective topics in light of the interconnections and potential reciprocity between operations and finance from risk management aspects.

Within the sustainability arena, CO2 reduction has emerged as a key challenge for manufacturers in the fast-moving consumer goods industry. This goal needs to be balanced against the competitive priorities of cost and responsiveness. Emissions-reducing efforts are driven by the need to comply with expectations from industry and end customers and by opportunities for energy and cost savings. Manufacturers are now looking beyond their corporate boundaries to find new ways to reduce emissions along the supply chain. There is a need for research to address supplier selection in the face of sustainability challenges and provide insights about the factors affecting the transfer of sustainability skills between the manufacturer and its suppliers. This multiple case study investigates the factors that influence an organization's readiness to engage in a collaborative CO2 reduction management (CCRM) approach. We find that partner selection for CCRM exhibits path dependency in terms of the manufacturer's maturity level of sustainability; characteristics of key downstream customers, in turn, are shown to also impact this selection.

Demand forecast errors threaten the profitability of high–low price promotion strategies. This article shows how to match demand and supply effectively by means of two-segment demand forecasting and supply contracts. We find that demand depends on the path of past retail prices, which leads to only a limited number of reachable demand states. However, forecast errors cannot be entirely eliminated because competitive promotions entail some degree of random (i.e., last-minute) pricing. A hedging approach can be deployed to distribute demand risk efficiently over multiple promotional campaigns and within the supply chain. A retailer that employs a portfolio of forward, option, and spot contracts can avoid both stockouts and excess inventories while achieving the first-best solution and Pareto improvements. We provide an improved forecasting method as well as stochastic programs to solve for optimal production and purchasing policies such that the right amount of inventory is available at the right time. By connecting a stockpiling model of demand with the supply side, we derive insights on optimal risk management strategies for both manufacturers and retailers in a market environment characterized by frequent price promotions and multiple discount levels. We employ a data set of the German retail market for a key generator of store traffic—namely, diapers.

In today's world economy, which is marked by intensified international trade, air cargo acts as a key facilitator. However, cargo airlines continue to struggle to be profitable because of very high asset costs and substantial demand uncertainty. To improve upon this situation, we propose an options contract. Our model captures the main features of cargo trade between an airline and a freight forwarder and allows us to derive an optimal reservation policy. We then go on to analyze the impact of overbooking on the profit of the cargo capacity provider. The model is subsequently applied to real-life booking data provided by a major cargo carrier. This enables us to compare current contractual arrangements with the ones proven optimal in the model. A numerical study provides insights about the impact of overbooking on contract parameters and profitability. Managerial insights to be drawn conclude this study.