MANAGEMENT AND DECISION MAKING TOOL FOR COMMODITY PURCHASES WITH HEDGING SCENARIOS
Methods for managing hedging scenarios associated with a retail commodity. The method includes enabling the creation of a risk profile associated with a user and the commodity. Based on the risk profile, the method includes selecting hedging scenario(s) associated with purchasing a quantity of the commodity. The method also includes determining a user cost associated with purchasing the hedging scenarios using a time-based price of the commodity and outputting the costs. In some embodiments the time-based price is historic. The method can include enabling the user to purchase a hedging scenarios. Some embodiments include accepting a commodity consumption pattern, adjustments to the pattern, what-if cases, costs to the provider of the hedging scenarios. The costs (and savings) to the user can be determined based on the accepted consumption patterns (and adjustments) what-if cases, and provider costs. Systems and programs for managing such hedging scenarios also provided.
1 . A computer-readable storage medium carrying program instructions executable by a processor to:
create a risk profile associated with a customer, a commodity, or a combination thereof;
based on the risk profile, create one or more hedging scenarios associated with a purchase of a quantity of the commodity;
determine a cost associated with each of the one or more hedging scenarios using a time-based price associated with the commodity; and
present the one or more hedging scenarios to the customer, wherein the customer is an individual user or an entity.
2 . The computer-readable storage medium of claim 1 , wherein the time-based price is a historic time-based price.
3 . The computer-readable storage medium of claim 1 , wherein the program instructions are further executable by the processor to enable the customer to purchase a price protection product covering at least one of the one or more hedging scenarios.
4 . The computer-readable storage medium of claim 1 , wherein the program instructions are further executable by the processor to accept a consumption pattern of the commodity associated with the customer and to determine the cost associated with each of the one or more hedging scenarios based on the consumption pattern.
5 . The computer-readable storage medium of claim 4 , wherein the program instructions are further executable by the processor to accept an adjustment to the consumption pattern.
6 . The computer-readable storage medium of claim 1 , wherein the program instructions are further executable by the processor to determine a cost associated with purchasing the quantity of the commodity at a retail price.
7 . The computer-readable storage medium of claim 1 , wherein the program instructions are further executable by the processor to accept a what-if case associated with the commodity and to determine the cost associated with each of the one or more hedging scenarios based on the what-if scenario.
8 . The computer-readable storage medium of claim 7 , wherein the what-if case pertains to a natural disaster, a war, a political change, a supply disruption, an interest rate change, or a world event.
9 . The computer-readable storage medium of claim 1 , wherein the program instructions are further executable by the processor to add a non-hedging related cost to the cost associated with each of the one or more hedging scenarios.
10 . The computer-readable storage medium of claim 1 , wherein the program instructions are further executable by the processor to determine a savings associated with purchasing each of the one or more hedging scenarios and to present the savings to the customer with the one or more hedging scenarios.
11 . A method comprising:
creating a risk profile associated with a customer, a commodity, or a combination thereof;
based on the risk profile, creating or selecting one or more hedging scenarios associated with a purchase of a quantity of the commodity;
determining a cost associated with each of the one or more hedging scenarios using a time-based price associated with the commodity; and
presenting the one or more hedging scenarios to the customer via a user interface.
12 . The method of claim 11 , wherein the time-based price is a historic time-based price.
13 . The method of claim 11 , further comprising enabling the customer to purchase, through the user interface, a price protection product covering at least one of the one or more hedging scenarios.
14 . The method of claim 11 , further comprising:
accepting a consumption pattern of the commodity associated with the customer; and
determining the cost associated with each of the one or more hedging scenarios based on the consumption pattern.
15 . The method of claim 11 , further comprising:
determining a savings associated with purchasing each of the one or more hedging scenarios; and
presenting the savings to the customer with the one or more hedging scenarios.
16 . A system comprising:
a processor; and
a computer-readable storage medium accessible by the processor and carrying program instructions executable by the processor to:
create a risk profile associated with a customer, a commodity, or a combination thereof;
based on the risk profile, create one or more hedging scenarios associated with a purchase of a quantity of the commodity;
determine a cost associated with each of the one or more hedging scenarios using a time-based price associated with the commodity; and
present the one or more hedging scenarios to the customer, wherein the customer is an individual user or an entity.
17 . The system of claim 16 , wherein the time-based price is a historic time-based price.
18 . The system of claim 16 , wherein the program instructions are further executable by the processor to enable the customer to purchase a price protection product covering at least one of the one or more hedging scenarios.
19 . The system of claim 16 , wherein the program instructions are further executable by the processor to add a non-hedging related cost to the cost associated with each of the one or more hedging scenarios.
20 . The system of claim 16 , wherein the program instructions are further executable by the processor to determine a savings associated with purchasing each of the one or more hedging scenarios and to present the savings to the customer with the one or more hedging scenarios.