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Automation and Remote Control

, Volume 80, Issue 6, pp 1098–1108 | Cite as

A Stochastic Control Model for the Average Price of Manufacturer Sales on Commodity Exchanges

  • S. A. VavilovEmail author
  • K. S. KuznetsovEmail author
Control in Social Economic Systems
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Abstract

We propose an approach for controlling the weighted average price of a manufacturers sales on commodity exchanges. This problem is highly relevant due to the need for the manufacturer to hedge their profits in case of a sharp drop in market prices. We consider applications of the proposed control to executing trading operations on real commodity exchanges in order to demonstrate its efficiency.

Keywords

commodity exchanges random processes sales management 

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Copyright information

© Pleiades Publishing, Ltd. 2019

Authors and Affiliations

  1. 1.St. Petersburg State UniversitySt. PetersburgRussia

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