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This means that the demand increase will produce an increase in supply at a controlled rate.
d. How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace?
The simulation sheds particular light on the idea of adjusting pricing structure according to apparent market demand. This is useful to any workplace. In my case, the notion that large-scale external changes in the marketplace might bring about the need to make internal decisions within an organization seem particularly applicable. The simulation describes a scenario in which a company called Lintech makes its new home in Atlantis, bringing with it a boom in residency. The importance for a company such as Goodlife of preempting this infusion by increasing both price and supply is tantamount to accommodating rising demand. This is a scenario which applies to any organizational decision-making scheme predicated by market behaviors.
e. Determine how price elasticity of demand affects the decision making of the consumer and of the organization.
Using the simulation in question, we can see that there is a direct relationship between the apparent market demand and the decisions made an organization. For GoodLife,...
Here, the ability to engage price elasticity according to market demand will produce and improvement in revenues for the company on the whole. Using the simulation provided, we can observe that with two-bedroom apartment building rentals going for $11.75 per month, the vacancy rate initiates at about 27.5% and brings in an annual revenue of roughly $1.7 million.
Price elasticity allows us to actually improve revenue by lowering rental prices to meet the market threshold. In this case, we can dip below the benchmark of 18% vacancy, reaching 17.5% by adjusting the monthly rental rate to $1,075.00. We find that this improves overall revenue to $1.77 million annually.
f. Summarize your results of the assessment
The assessment ultimately produces the finding that many changes in the marketplace may occur over time, such as through the infusion of greater demand as produced by the influx of Lintech's residency or through the increase of supply as resultant from OakRidge's growing place in the market. These changes will impact how an organization makes decisions and postures itself in the marketplace.
Demand and supply are the core concepts of economics and these are what determine the price of any given item. When demand of a certain item increases, it is usually followed by a corresponding increase in supply. And thus the price is affected. However there are times when demand increases more sharply than supply and this causes price to move up. In any case, price is directly dependent on supply
(Reza, 2009) This information is building off of the findings from Uthayakumar. This is illustrating how the two tier system can help to streamline operations. However, as time goes by these ideas will become obsolete. The reason why is because they are focusing on particular aspect of supply chain management (i.e. during emergencies and backlogs). Where is it is failing, is through understanding how this strategy could be used when
Supply and Demand Curve: Shifts and Movements Demand is, in basic terms, that quantity of a certain product/good that consumers are able and willing to buy/purchase at the prevailing price (Hirschey, 2008). A product's market demand function relates its aggregate quantity demanded to the various parameters, including price, that influence the said quantity (Hirschey, 2008). The demand curve is an expression of "the relation between the price charged for a product
Supply Demand Simulation Macro and Microeconomic Principles From the simulation, the two major microeconomic principles are supply and demand. The simulation majorly focuses on the supply and demand of rental properties in Atlantis. In addition, the influences on supply and demand form the major topic discussed in the simulation. The macroeconomic factors clearly stated in the simulation are changes in the population trend, choosing to rent or buy apartments and factors that
Supply chain management in FMCG sector Fast Moving Consumer Goods (FMCG) Managing supply of FMCGs Demand and Supply Distribution Channel Traditional channel of FMCGs distribution National Vs Global Presence Products and Services Supply chain opportunities Usage of Supply Chain Management Business development Business performance Cost reduction Revenue Increase Inventory management Overall Business Performance Competitive advantage Future trends Issues in global supply chain management: FMCG sector Multi-channel Supply Chain Management Individual Tagging The FMCG sector is represented as manufacturers and distributors of packaged products. They are also coupled with mega retail brands
Supply Chain Strategy When it comes to companies sharing business relationships, and occasionally shareholdings, as well, a Keiretsu network is often the best way to integrate and manage that group of companies (Jacoby, 2009). In that way, the relationship between the businesses becomes a partnership instead of only that of buyer-seller (Jacoby, 2009). There are many long-term benefits of this type of network, and these benefits could be carried over to