Volatility Has A Price

This article examines why semiconductor S&OP systematically underprices volatility — and how that blind spot erodes margin, working capital, and cycle performance.

It reframes volatility as a financial variable, not just a planning challenge. Instead of asking how to “manage” volatility, it asks:
- Where is risk not being priced into decisions?
- What is that mispricing costing each cycle?
- How should planning models incorporate risk premiums explicitly?

The core argument:
Volatility is structural in semiconductors. The competitive advantage lies in pricing it correctly — operationally and financially.