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The purpose of this paper is to price an order (inventory control) policy when both the demand and the price ate uncertain and markets are complete. Inventory management is assumed to be equivalent to an investment for future and risky prospects for which a risk premium is required. Optimization of this risk premium defines the optimal-order policy. A number of examples ate solved and we show how a zero-inventory policy can be replicated by a portfolio of options and of course an optimal-order quantity. The approach developed in this paper underlies as well a common practice by certain firms who use materials that are traded in speculative financial markets. In these situations, managers combine their production-based activities with speculations regarding their potential demand and the associated price of materials. For demonstration purposes and to highlight the practicality of this approach an extensive application and numerical results ate used. In particular, we consider a two-period problem with an exponential utility function and a mean exponential demand, which is a function of price. Keywords: Market pricing Orders management Inventory Finance

Investment professionals, Felix Zulauf, Abby Joseph Cohen, Marc Faber, Archie MacAllaster, and Scott Black give their opinions on topics such as commodity prices and recessions. They also discuss their investment picks for 2008 which include currencies, stocks, commodities, and exchange traded funds.

The article presents MergeGlobal's forecast of future demand and supply for the global containerized air and sea freight industries. MergeGlobal used a demand-pull framework to forecast trade flows in the freight industry and other major commodity groups.

Abstract: Two classes of the bottleneck transportation problem with an additional budget constraint are introduced. An exact approach was proposed to solve both problem classes with proofs of correctness and [...]

The next big item on the telecoms liberalisation agenda is spectrum trading. In theory it should turn radio frequencies into a commodity like any other, available to the highest bidder […]

A model of aggregate consumption in which the demand for non-durable consumption goods is affected by relative prices, real wage rate and real full income is presented. The real wage rate and real full income are calculated and tested using cointegration procedures. The results show that the full-income model does not meet the homogeneity test, although it performs sufficiently empirically.

Derek Van Eck a principal at Van Eck Associates says that the general outlook for commodities is improving due to both cyclical and structural factors. Van Eck sees commodity prices stabilizing and he sees a 10 to 15 percent upside in agricultural commodities based on less supply.

Chinese demand had ended a century of steadily falling raw-material costs for rich-world consumers LOOK OUT ON any day from Pier Two at the Tubarão Port complex in Brazil and [...]

In 1999, Asia accounted for 38% of global copper demand. Today, the figure is 62%. In 1999, China consumed 4.5 million barrels of oil per day. Ten years later, that [...]

Title XI could figure in economic stimulus Government policy to address the nationOs economic ills could be a boon for the U.S. maritime industry, according to maritime attorney Rolf Marshall. [...]

Real deposit account system for the processing trade postponed. Issued: November 21 2008Effective: December 1 2008Applicability: The administrative measures for commodities in the restricted category shall not apply to customs [...]

LatAm is on a journey that will not be easily derailed by the global credit crunch, developed market slowdown or commodity corrections. The biggest risk lies at home. by Manuel [...]

Oil and gold hit new highs TRADITIONALLY, the beginning of the year is a time for bargain-hunters to snap up excess stock on the cheap. Not, this year, on the [...]

COMMODITY PRICES (Source: Wall Street Journal) Week Week % Chge. Ended Ended Last Mar. 3 Feb. 24 Year Steers, Tex.-Okl. avg. cwt. 87 N/A N/A Feeder Steers, Okl. Cty., cwt. [...]

We have had two years of synchronised global recovery but now is the time to isolate themes for the future, with gold, commodities and Japan among the hot contenders In […]

THE commodities market's bullish outlook into 2005 looks bright, but investors and IFAs lack the knowledge to capitalise on it, according to Ashley Clark of Need An Adviser.com. Only a [...]

Sheehan is president and CEO of Processors Unlimited, a USFreightways company based in Dallas. Of what the U.S. Department of Commerce projects as $1 trillion in retail trade, retailers nationwide [...]

The soaring prices of commodities in the mining industry have been very good for the attendees of the 76th annual conference of the Prospectors & Developers Association of Canada. A speaker at the conference expects commodity prices to come off a bit but not fall dramatically as it did in the 1980's.

Various reasons like climatic and demand fluctuations that boasted the prices of commodities in the United States are presented. The future prices of commodities are analyzed.

Most investors are looking for exposure in primary products like wheat, cattle, gold and Australian wool. Investment in commodities carry a certain level of guaranteed demand and hence will always be attractive to clients and financial planners.

Excess supply is threatening the grain markets and it is estimated that corn surplus will total 1.799 billion bushels for 2010 while U.S.-soybean ending stocks are tight at 190 million bushels. It is estimated that farmers will plant 89-to-90 million acres of corn in 2010 and 77-to-79 million acres of soybeans for 2010.