A capacitated commodity trading model with market power

In this paper we consider the problem of a trader who purchases a commodity in one market and resells it in another. The trader is capacitated: the trading volume is limited by operational constraints, e.g., logistics. The two markets quote different prices, but the spread is reduced when trading takes place. We are interested in finding the optimal trading policy across the markets so as to obtain the maximum profit in the long-term, taking into account that the trading activity influences the price processes, i.e., market power. As in the no-market-power case, we find that the optimal policy is determined by three regions, where 1) move as much as possible from one market to the other; 2) the same in the opposite direction; or 3) do nothing. Finally, we use the model to analyze kerosene price differences between New York and Los Angeles.commodity trading; price processes; inventory management;

A capacitated commodity trading model with market power

This Master Thesis proposes an analytical model of commodity trading in the presence of market power, which is new to the literature. We establish the rational behavior of traders between two markets and derive price spread dynamics based on the trading volumes. We consider two commodity markets that quote different prices for the same product, and a trader capable of purchasing in one market to resell in the other, within a trading capacity. For simplicity, we assume that the inventory present between the two markets is constant, i.e., the amount stored is fixed (and is directly linked to the trading capacity). We first establish the structure of the optimal trading policy. This policy determines, given a realization of the current price spread between the two markets, how much (if any) volume must be bought/sold from/at the first market and sold/bought at/from the second market, so that the long-run average profit is maximized. When optimizing, the trader takes into account its impact on future spreads. We then describe the parameters of the optimal policy and we apply our model to kerosene prices in New York and Los Angeles, and illustrate the insights derived

Els gabinets de premsa com a mediadors entre els científics i els mitjans

L'impacte diari de la ciència en la societat actual fa necessari, cada vegada més, un coneixement públic de la ciència. La percepció que la societat té dels investigadors i dels descobriments científics depèn sobretot de com es comunica la ciència, qui ho comunica i per què. L'article segueix el flux de la notícia científica des dels seus creadors, els científics, fins a la interacció d'aquests amb els mitjans de comunicació, i se centra específicament en el paper que els gabinets de premsa tenen com a mediadors i difusors de la informació.Science’s ever growing impact on today’s society imposes a public understanding of science. Society’s perception of scientists and science breakthroughs depend mainly on the way science is communicated, who communicates it and their intention underneath it. The article follows the path of science news, from the source-scientists-their interaction with the media, concentrating specifically on the role of Press Departments as mediators between scientist sources and journalists

Manufacturing costs in China and implications for US companies

The world is a dynamic system that changes constantly: facts that were true yesterday may not be tomorrow, and the world of industry and trade is not an exception. During the last years, many social and economic shifts have occurred around the globe and they are reshaping the manufacturing and the supply chains. Among all these shifts, China’s increase of manufacturing costs is probably one of the most critical ones, given the exceptional importance of the country as a producer. For decades, companies from developed and industrialized areas have moved their production to China seeking the low manufacturing costs and taking advantage of the rise of industrialization taking place in the Asian giant. However, nowadays the conditions are not as favorable and the evolution of other regions is jeopardizing the competitiveness of the People’s Republic of China and having a huge impact on the statement of profit and loss of thousands of companies. Many of the affected corporations are redefining their strategy and building new capacity in other regions, but it is extremely complex and difficult to know in advance what to do in order to remain competitive for the coming years. From the point of view of a student familiar with the supply chain management and more specifically with the global supply chains, the phenomenon of China’s industrialization can only be praised because of how effective it proved to be. However, it seems that this golden age of Chinese manufacturing is coming to an end; at least in the way it is now. In this moment we are facing an uncertain situation and it is fascinating the wide variety of options, and even more fascinating the impact that the strategic decisions to adapt to the new reality will have on the companies. As an Industrial Engineer, I decided to work on this project because I am convinced that it is one of the biggest challenges affecting the Supply Chain and a good understanding of the whole problem will become a great tool for my career. The purpose of this project is to identify the main causes of the rise of manufacturing costs in China and analyze the best alternatives for US companies that are suffering it. Furthermore, the main objectives of the research are: 1. Performing a research about the current situation of manufacturing in China and about the facts that led to this reality. 2. Understanding the challenge of the affected US companies and identify the most suitable options for their future. 3. Acquiring experience within supply chain by collaborating with a US corporation and dealing with a real case

A capacitated commodity trading model with market power

This Master Thesis proposes an analytical model of commodity trading in the presence of market power, which is new to the literature. We establish the rational behavior of traders between two markets and derive price spread dynamics based on the trading volumes. We consider two commodity markets that quote different prices for the same product, and a trader capable of purchasing in one market to resell in the other, within a trading capacity. For simplicity, we assume that the inventory present between the two markets is constant, i.e., the amount stored is fixed (and is directly linked to the trading capacity). We first establish the structure of the optimal trading policy. This policy determines, given a realization of the current price spread between the two markets, how much (if any) volume must be bought/sold from/at the first market and sold/bought at/from the second market, so that the long-run average profit is maximized. When optimizing, the trader takes into account its impact on future spreads. We then describe the parameters of the optimal policy and we apply our model to kerosene prices in New York and Los Angeles, and illustrate the insights derived

La gozosa senectud: restauración, ampliación y rehabilitación del antiguo Matadero Municipal de Sueca para Centro de Día de personas mayores

[ES] El proyecto consiste en la restauración y rehabilitación de la preexistencia, el antiguo Matadero Municipal de Sueca, así como su ampliación con un nuevo cuerpo arquitectónico que dialoga con ésta, a la vez que conforman un gran espacio interior a modo de patio. Su destino es un centro de día para personas de la tercera edad, dotándolo de todas las dependencias necesarias para dicho uso y eliminando todas las barreras arquitectónicas, teniendo en cuenta el gran número de usuari@s discapacitad@s, y con deficiencias motrices. El programa funcional pasa por crear espacios de ocio, entretenimiento, descanso, gimnasio y sala de fisioterapia, sala de ejercicio mental, baños adaptados, servicio de cafetería-comedor, oficinas, vestuarios, peluquería, aula de formación y biblioteca. Los objetivos del proyecto consisten en convertir un edificio con una gran calidad arquitectónica, que se encuentra en desuso, en un espacio adecuado para ser utilizado con una de las mejores finalidades a las que se puede destinar un edificio de esta magnitud y en el entorno en el cual se ubica, utilizando el contenedor actual, con la adición de un nuevo volumen proyectado con las técnicas y los materiales actuales, y respetando la preexistencia.[EN] The project consists in the restoration and rehabilitation of the pre-existence, the old Municipal Slaughterhouse, as well as its extension with a new architectural body that dialogues with it while forming a large interior space as a courtyard. Its destination is a day center for the elderly, providing it with all the necessary dependencies for such use and eliminating all architectural barriers, considering the large number of disabled users, and with reduced mobility. The functional program consists of creating spaces for leisure, entertainment, rest, gym and physiotherapy room, mental exercise room, adapted bathrooms, cafeteria-dining room service, offices, changing rooms, hairdressing salon, training room and library. The objectives of the project consist in converting a building with a high architectural quality that is in disuse in a suitable space to be used with one of the best purposes to which a building of this magnitude can be allocated and in the environment in which it is located, using the current container, with the addition of a new projected volume with the current techniques and materials, and respecting the pre-existence.Martínez Vendrell, JA. (2019). La gozosa senectud: restauración, ampliación y rehabilitación del antiguo Matadero Municipal de Sueca para Centro de Día de personas mayores. http://hdl.handle.net/10251/142394TFG