Commodity broker

Abstract: PROBLEM TO BE SOLVED: To attain an open marketing system capable of improving the operation efficiency of a business negotiation or ordering operation related to each commodity transaction. SOLUTION: A commodity provider's computer 100, a commodity broker's computer 400, a commodity seller's computer 500, and a computer 300 having a view point of marketing (VOM) table 320 for storing information sorting commodities in each view point of a commodity seller, a commodity attribute table 330 for storing commodity attribute information and commodity image information, a business table 340 for storing proposal information for proposing a plan from a wholesaler to a retailer, and an order result table 350 storing a commodity or event information ordered as the result of the business are mutually connected through a communication line 10 and information can be shared on the network.

Abstract: The commodity broker system enables the system user to undertake the functionality of a broker with a job entry device for receiving client jobs for at least one type of goods with fields containing. identifiers for the goods involved, a bid or offer and contractually desired particulars. Details are stored in a memory that is update by a device that carries out the instructions.

Abstract: We study an expected payoff maximization problem for a risk-sensitive broker aiming to evaluate the merits of designing and underwriting an option contract on a traded commodity with geometric Brownian motion (GBM) spot price trajectories. Candidate firms for whom the contract would mitigate the commodity’s price risk, each face Poisson demands that are currently the broker’s responsibility to satisfy. Subject to a variance risk budget and a robustness requirement, the broker’s objective is jointly to (1) choose a so-called trigger price function that will fundamentally define the option contract, and (2) select a value-maximizing set of client firms to whom the broker will offer the contract. We reformulate the problem as a bilevel program whose continuous relaxation we transform into a single-level, univariate problem with a convenient property that makes it amenable to line search methods. The optimal solution for that single-level problem is then raw material for constructing the optimal solution for the original problem. Our theoretical and experimental findings indicate that the contract’s optimal value, and optimal trigger price function are both strictly monotone increasing in a cost parameter in the model, as well as in the GBM’s volatility coefficient. The findings also show that those two quantities are strictly monotone decreasing in the GBM’s drift coefficient. We conclude with a benchmarking sensitivity study which uses real-world data to study the implications of violating a certain constraint which implicitly bounds the optimal trigger price.