Managing a cobalt stockpile

Abstract What follows is a suggested model for managing a national stockpile of cobalt. The stockpile is to be adjusted according to present needs, and cobalt can be sold from or bought for the stockpile. The model takes into consideration the current market price of cobalt, the projected price of cobalt in the near future, the expected need for cobalt in the upcoming year, the current stockpile level, and an evalution of the current political and economic situations that could possibly affect the price and availability of cobalt. The model considers several factors to be constant, such as the percentage of cobalt that is recycled annually, and the basic unit of cobalt that is bought or sold in any transaction. The model calculates reasonable buying and selling prices based on an evaluation of the current stockpile level as compared to need and market stability, and then determines if it is desirable to buy or sell cobalt. The model adjusts the stockpile level by buying or selling units of cobalt until a stable condition is reached with respect to need, market stability, and the current market price. The model assumes that cobalt is allocated to domestic consumers on a yearly basis. However, changes in the current market price or in the current market stability can be added within the yearly group of buy/sell transactions. After each transaction, the model presents an update of the stockpile level, current acceptable buying and selling prices, the amounts of cobalt bought or sold, and the current level of “comfort” (i.e. stockpile level as compared to need and market stability).