标题: Inventory levels and convenience yields [打印本页] 作者: Muddahudda 时间: 2011-7-13 17:17 标题: Inventory levels and convenience yields
Commodities:
At low Inventory levels, convenience yields are high. Why?
Edited 1 time(s). Last edit at Tuesday, March 29, 2011 at 10:09PM by deriv108.作者: pennyless 时间: 2011-7-13 17:18
If you are a coffee brewer company, coffee and sugar are inputs in your production. If your inventory of coffee and sugar is low, you are running the risk of halting production if there is a disruption of the supply of coffee and sugar.
In that case, having physical coffee and sugar in inventory is very valuable. So the convenience yield is high when inventory levels are low.
Convenience yield is the benefit of holding a commodity in short supply.
