ABSTRACT
This paper describes a simulation model that was developed to help a company analyze and improve its rules for purchasing one of its key raw materials. The material is traded on a commodity market and the company had successfully developed a system for forecasting price changes in the commodity market. The corporate executives were interested in evaluating the sales and returns that could be expected when various constraints were placed on commodity trading. The simulation was initially developed to address these questiond on trading limits and subsequently expanded to provide a basis for analyzing the trading system itself.
Index Terms
- Simulating commodity market trading policies
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