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Supply of Money
explain measures money supply explain definitions important.
Money is defined as a medium facilitating the exchange of goods and services between trading partners Mishkin & Frederic S., 1998.
Throughout history, exchange of goods and services has taken different forms with the earliest form being barter system. Following the inadequacies of the barter system - lack of coincidence of want and convenience in trading -- generally acceptable commodities were adopted for use in trading Froyen & ichard T., 1998()
Money supply is used to refer to total stock of assets generally accepted as the exchange medium in an economy at a particular time Froyen & ichard T., 1998.
According to Mishkin F (1999)
, economist carry on the debate what items should be included in money supply. Definition of money supply is pegged on the various considerations, the issue being examined and country or economic…
Froyen, & Richard T. (1998). Macroeconomics: Theories and Policies. 6th ed. Upper Saddle River: Prentice Hall.
IMF. (1997). Manual on Monetary and Financial Statistics. U.S.: IMF.
Mishkin, & Frederic S. (1998). The Economics of Money, Banking and Financial Markets. 5th ed.: . Reading, PA: Addison-Wesley.
Mishkin F. (1999). Money, Banking and Financial Markets, 3rd edition.: Harper Collins Publishers.
Nonetheless, M2 when adjusted for changes in the price level, is still a component of the Index of Leading Indicators, and some market analysts use it to forecast economic recessions and recoveries (Federal Reserve Bank, 2008).
Measuring the money supply is not without controversy. The policy of manipulating the money supply in order to control inflation is based on the idea that the more money there is in circulation, the more money there is chasing fewer goods, resulting in higher prices and vice versa. Governments have the ability to control the amount of money in circulation. They do this by stimulating demand by printing more money or by reducing demand by removing money. The process of achieving specific targets is difficult and governments frequently miss their goals, resulting in recessions and booms, all of which make up the economic cycle (Benson, 2007).
Skeptics in the financial markets maintain that the…
Benson, I. (2007). Jargon-free investment guide. Retrieved December 31, 2011 from: http://www.jargon-free.com/money-supply-m1-m3/30/
Federal Reserve Bank of New York. (2008). The money supply. Retrieved December 31, 2011 from: http://www.ny.frb.org/aboutthefed/fedpoint/fed49.html
WebFinance. (2011). M0. Retrieved December 31, 2011 from: http://www.investorwords.com/6571/M0 . -- and my number is [HIDDEN] or [HIDDEN] -- and my number is [HIDDEN] or [HIDDEN]
Commercial Banks and Money Supply
Money supply in the economy refers to the circulation of currency in the hands of people and institutions within an economy. This is the volume and speed with which money changes hands and moves from one entity to another within the country. This volume and speed affect the growth of the economy and the way it can serve the needs of the people. There are two categories of banks in the economy. These are the commercial banks, which are many, and the central bank, which is only one in any country. The central bank regulates the operations of the commercial banks and influences government policy on finances. This institution also sets the benchmarks for the expenditure levels within the country. However, the commercial banks are the most influential banks when it comes to controlling the supply of money in the economy (Crosse & Hempel, 2012).…
Avadhani, V. (2012). Fundamentals of money and banking. Mumbai [India: Himalaya Pub. House.
Chapman, J. (2013). Commercial banks and consumer instalment credit. New York: National Bureau of Economic Research.
Conant, C. (2011). The principles of money and banking. New York: Harper.
Crosse, H., & Hempel, G. (2012). Management policies for commercial banks (2d ed.). Englewood Cliffs, N.J.: Prentice-Hall.
Federal eserve works with three main policy tools -- reserve requirements, the discount rate and open market operations (St. Louis Fed, 2017). Each of the three has its strengths and limitations. They influence the amount of economic activity in different ways, which makes each one slightly different in how frequently it is used.
The discount rate is setting the rate at which banks can borrow money, which basically sets the baseline cost of money in the economy. The discount rate is used frequently because it is relatively easy to adjust, and has an immediate impact on the cost of money throughout the economy. In addition, the Federal eserve will often telegraph its interest rate moves, as a means of influencing the economy even before the move occurs, so that the change ends up being more gradual than it otherwise would have been. The discount rate, because it affects the price…
St. Louis Fed (2017) How monetary policy works. Federal Reserve Bank of St. Louis. Retrieved April 26, 2017 from https://www.stlouisfed.org/in-plain-english/how-monetary-policy-works
The existence of money makes exchange easier, compared with barter systems, because money provides a stable store of value. If exchange is conducted with physical goods only – as in a barter system – then there are many points of friction that will inhibit exchange. First, goods have different physical characteristics that can put limitations on exchange. Some goods are perishable, others too large to transport, still others difficult to transport. Two goods may have equivalent value, but these physical limitations create barriers to exchange. How does one exchange a house for a year's supply of fish, for example? They might have roughly the same value, but you can't take all the fish at once, you can't trust that the fish will be delivered later, and moreover if the person wishes to take back the house because the deal fell through, but the other person ate all the fish,…
Market of Grain in the United States
In the United States, millions of Americans are confronting the latest trends in the commodities markets where the costs of agricultural products have driven up costs of breakfasts of average Americans. Over the past year, the price of orange juice has increased a quarter, and the price of milk has also risen by 5%, and egg by a fifth. The issues have made General Mills and Kellogg's to increase the prices of their breakfast cereal products. The cause of an increase is due to a recent rise in the price of grains such as wheat and corn. Underpinning the rise in the price of grains is that the demand has outpaced the supply because of the growing demand for cereals for the production of biofuels such as ethanol. Thus, the author is trying to reveal the factors that lead to an increase in…
economic crisis in Europe and the increasing costs for European countries to borrow money and bail out other Euro countries in financial distress. The EU nations that use the Euro have experienced a crisis among certain countries with high debt requiring bailouts for Greece and Ireland and the likelihood that Portugal and Spain may also need a bailout. Postponing the restructuring of high interest debts has led to further crisis rather than resolving any of the problems faced by insolvent countries. Huge transfer payments from the more powerful Euro countries, like Germany, to the failed economies of Greece and Ireland have made investors nervous and led to less investment at a crucial time. The author suggests that the debts of troubled countries need to be restructured now in order to create a sustainable payment to increase confidence and secure future payments.
Creditors will also have to shoulder some of the…
Bamberger, K.. (2010). Technologies of Compliance: Risk and Regulation in a Digital Age. Texas Law Review, 88(4), 669-739. Retrieved January 21, 2011, from ABI/INFORM Global. (Document ID: 1995143041). http://www.egloballibrary.com/egl/html/institutes/1086/homepage/library.jsp
Corder, J. (2009). The Federal Reserve System and the Credit Crisis. Public Administration Review, 69(4), 623-631. doi:10.1111/j.1540-6210.2009.02011.x http://ehis.ebscohost.com.csuproxy.egloballibrary.com/ehost/detail?hid=6&sid=feb1c9d6-ff89-462b-9741-b5b3cfdd54aa%40sessionmgr12&vid=8&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=42960193
Europe finance: Time for Plan B. (2011, January). EIU ViewsWire. Retrieved January 19, 2011, from ABI/INFORM Global. (Document ID: 2241366821).
Money and the Prices in the Long un and Open Economies
Analyze the history of changes in GDP, savings, investment, real interest rates, and unemployment and compare to forecast for the next five years
The GDP of the United States in 2010, approximately five years ago, stood at $14.96 trillion. Fast forward five years to the present day, the GDP of the nation currently stands at $17.42 trillion. Looking forward, according to Trading Economics (2016), it is projected that the growth of the GDP rate will be in the scope of 2.00% in the year 2020. Therefore, it is forecasted that by 2020, the GDP for the country will be $20.33 trillion (Trading Economics). With regard to savings and investment, it is imperative to point out that the United States has been incessantly having trade deficits for the past four decades, owing to the high importation of oil and consumer…
Arnold, R. A. (2007). Macreconomics, Concise Edition. Ohio: Thomson South-Western.
Cole, A. (2014). Losing the Future: The Decline of U.S. Saving and Investment. Tax Foundation. Retrieved 16 June 2016 from: http://taxfoundation.org/article/losing-future-decline-us-saving-and-investment
Ross, S. (2015). What impact does the balance of trade have on GDP calculations? Investopedia. Retrieved 17 June 2016 from: http://www.investopedia.com/ask/answers/061515/what-impact-does-balance-trade-have-gdp-calculations.asp
Trading Economics. (2016). United States Balance of Trade. Retrieved 16 June 2016 from: http://www.tradingeconomics.com/united-states/balance-of-trade
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 the new company that builds power tools. The Keiretsu network will allow strong relationships to be created with suppliers, and that will help lower the costs of manufacturing (Heizer & ender, 2010; Nagurney, 2006).
These lowered costs are very important, as is the lean manufacturing that can be created through proper coordination with various suppliers (Heizer & ender, 2010). However, there is some risk to the Keiretsu network in that the closeness of all the companies may make shopping…
Heizer, J. & Render, B. (2010). Operations management (10th ed). NY: Prentice Hall.
Jacoby, D. (2009). Guide to supply chain management: How getting it right boosts corporate performance. The Economist Books (1st ed.). NY: Bloomberg Press.
Nagurney, A. (2006). Supply chain network economics: Dynamics of prices, flows, and profits. Cheltenham, UK: Edward Elgar.
Oliver, R.K. & Webber, M.D. (1992) . Supply-chain management: Logistics catches up with strategy. In Christopher, M. Logistics: The strategic issues. London: Chapman Hall. pp. 63 -- 75.
The product being studied is the Prius, the hybrid car from Toyota. The automobile industry is one the largest industries in the world. The major players are Ford, General Motors, Chrysler, Honda, Mitsubishi, Hyundai, several European companies and regional players as well (Investopedia, 2011). These firms all contribute to intense competition among rivals, especially given the size of the industry. The result is an industry characterized by competition both along the lines of differentiation and cost leadership. Firms must sell high volumes of cars at low margins in order to earn revenues, but must also load those cars with features and demonstrate technological leadership in order to attract business.
The large number of firms has an impact on the supply conditions within the industry. Supply is determined by expected sales and by the capacity of manufacturing facilities. In general, the global automobile industry suffers overcapacity. There are high costs…
AAAT. (2011). Auto transport business in auto industry slow down. All America Auto Transport. Retrieved December 3, 2011 from http://www.aaat.com/auto-transport-business-industry-slow-down.cfm
AP. (2008). Hybrid sales, led by Prius, up 38% in '07. MSNBC. Retrieved December 3, 2011 from http://www.msnbc.msn.com/id/24230209/ns/business-going_green/t/hybrid-sales-led-prius-percent/#.Ttq9o1b5sa8
Hirsch, J. (2011). Toyota Prius dealers see demand rise and inventories fall. Los Angeles Times. Retrieved December 3, 2011 from http://articles.latimes.com/2011/mar/31/business/la-fi-autos-disruption-20110331
Investopedia (2011). The industry handbook: Automobiles. Investopedia. Retrieved December 3, 2011 from http://www.investopedia.com/features/industryhandbook/automobile.asp#axzz1fQWPK54R
Price elasticity for this product was likely quite great, before the item was subsidized, as few consumers perceived it as a necessity. Only the costs of production limited the price elasticity, as the tanks are presumably not cheap to build. Of course, the government might protest that the product is a necessity, given the dire need for conservation, if Australia is to continue to have a sustainable source of drinking water. But preserving the environment is often a case where the micro interests of the household do not match up with the macro interests of the nation. Until the subsidy was created, a household in the short-term could save money by not purchasing the rain water tank, although in the long run the household may save both on water bills and also upon more costly solutions needed by the government, to ensure that the nation has a sustainable source of…
Economics basics: Demand and supply. Investopedia. February 15, 2010.
Economics basics: Elasticity. Investopedia. February 15, 2010.
Supply Chain Integration
There are myriads of ways in which setting supply chain standards can improve supply chain management. For the most part, setting such standards will help to address issues that this particular industry faces as a whole. Setting standards will take a holistic approach to those problems, and eschew the deployment of end point solutions to issues that are common throughout a host of vertical industries and which are related to supply chain management. Ultimately, such standards will improve the field of supply chain management by creating a greater degree of uniformity and ensuring that there is more cohesiveness in the ways that companies do business, in the ways that the business they do affect one another, and in the relationships between manufacturers and supply chain management entities.
Two of the most palpable areas in which the implementation of supply chain standards can better supply chain management are…
Copulsky, J.R., Linich, D., Morris, S., Parker, N. (2014). Supply unchained: Fighting labor abuse in your supply chain. CFO Journal. Retrieved from http://deloitte.wsj.com/cfo/2014/08/15/supply-unchained-fighting-labor-abuse-in-your-supply-chain-weekend-reading/ .
Northwestern University. (2014). Supply chain. www.northwestern.edu. Retrieved from http://www.northwestern.edu/standards-management/topics/supply-chain/index.html .
Thibodeau, P., (2002). Supply chain standards up for federal funding. Computerworld, Framingham, 36(42).
In addition, outsourcing is seen as one way of freeing HR professionals within the client organization from more mundane and time-consuming tasks so as to better concentrate on core competencies and provide a more consultative and strategic role (Cooke 186). Although the growth of HR outsourcing business has been dramatically facilitated by the introduction of innovations in information and communication technologies (ICT) throughout China in recent years, many companies also report an increasing use of e-HR in-house. For example, in some large Chinese organizations, employees are encouraged and even expected to use e-HR to update their personnel records as a cost-saving initiative (Cooke 186).
Based on the available evidence from secondary sources of data, the outsourcing of HR in general remains relatively limited in China; however, there are trends of the increasing use of external providers for their services such as recruitment and training (Cooke 186). According to the atson…
Bielski, Lauren. (2006). "Outsourcing Success: It's All in the Governance Making Deals Work Daily Takes a Long-Term View." ABA Banking Journal 98(7):38.
Chow, Garland. (2007). "Outsourcing and Third-Party Logistics." Centre for Transportation Studies & Operations and Logistics Division: The University of British Columbia.
2000). "Outsourcing Logistics." Class notes: Supply Chain Management: The University of British Columbia.
Cooke, Fang Lee. HRM, Work and Employment in China. London:
Companies focus on speed to market for a couple of reasons. There are first-mover advantages, and in some markets like smartphones there are a lot of consumers who are early adopters, so the market is strong for products that come to the market quickly (Smith, 1999). Companies can position themselves as innovators if they are consistently first to market with new ideas. Speed to market is also reflected in firms that are not the innovators, but the followers. Following the leaders quickly is a method that can allow a company to remain competitive but with a lower level of innovation expense; following the leader slowly can leave a company with a noticeably inferior product.
Yet, there are disadvantages to the idea of speed to market. First, it is sometimes a more complex strategy. The company will need to develop an agile supply chain, and have its systems dialed…
Kingsely, A. (2008). The day Microsoft killed the Vista name -- January 31, 2006. ZD Net. Retrieved March 22, 2015 from http://www.zdnet.com/article/the-day-microsoft-killed-the-vista-name-january-31-2006/
Robinson, A. (2013). 6 benefits of logistics automation in a transportation management system. Cerasis. Retrieved March 22, 2015 from http://cerasis.com/2013/10/25/logistics-automation/
Bowersox, D. (1990). The strategic benefits of logistics alliances. Harvard Business Review. Retrieved March 22, 2015 from http://gkwl.nbu.edu.cn/4pl/gwxsrw/12.pdf
Harps, L. (2005). Cool stuff, blazing speed. Inbound Logistics. Retrieved March 22, 2015 from http://www.inboundlogistics.com/cms/article/cool-stuff-blazing-speed/
Supply Chain strategies are like a living thin. They must change and adapt in order to meet the ever evolving needs of the customer and the business. They need to be flexible enough to drive ideal operational and tactical decisions. It also must be precise and clear. This is because it allows for immediacy in decision-making.
For example, future opportunities require a supply chain strategy to evolve with time. Twenty years ago, the internet was not so heavily used as it is today. Things were done in paper instead of online and digitally. Things like fax machines were used instead of email and people paid with checks instead of PayPal or some other online money system.
Now that things have become digitized, people are more likely to involve their business with online activity including websites and chat interfaces to allow customers and merchants to communicate with them effectively (Song, 2013).…
Elmer-DeWitt, P. (2013). Map of the day: Apple Inc.'s Asian supply chain.Fortune. Retrieved 9 February 2016, from http://fortune.com/2013/02/16/map-of-the-day-apple-inc-s-asian-supply-chain/
Song, D. (2013). Optimal control and optimization of stochastic supply chain systems. London: Springer.
Supplychainbrain.com,. (2016). IBM's Integrated Supply Chain Creates Strategic Value Throughout the Enterprise. Retrieved 9 February 2016, from http://www.supplychainbrain.com/content/research-analysis/supply-chain-innovation-awards/single-article-page/article/ibms-integrated-supply-chain-creates-strategic-value-throughout-the-enterprise-1/
Supply Chain Management
Wal-Mart is a retailer with a focus on being a low cost competitor. Supply chain management is a critical component of this, and has long been the primary focus on Wal-Mart's competitive advantage. In response to a website mocking Wal-Mart customers, one executive famously noted that Wal-Mart sells to everybody, and there are 476 billion reasons to believe that Wal-Mart's target market really is everybody (MSN Moneycentral, 2014). The company knows that it if perceived to have the lowest prices on a wide range of everyday goods, it will win a considerable amount of business. But delivering the lowest prices consistently is not easy, and this is where the supply chain comes into it.
An above-the-line initiative is basically mass media, while below the line consists of other promotional methods (Manral, 2011). In either case, Wal-Mart has a consistent message about low prices, and the supply chain…
Manral, K. (2011). Difference between above the line and below the line advertising. The Advertising Club. Retrieved March 27, 2014 from http://theadvertisingclub.net/index.php?option=com_content&view=article&id=3256:difference-between-above-the-line-and-below-the-line-advertising&Itemid=175
MSN Moneycentral: Wal-Mart. (2014). Retrieved March 27, 2014 from http://investing.money.msn.com/investments/stock-price?symbol=wmt&ocid=qbeb
Traub, T. (2012). Wal-Mart used technology to become supply chain leader. Arkansas Business. Retrieved March 27, 2014 from http://www.arkansasbusiness.com/article/85508/wal-mart-used-technology-to-become-supply-chain-leader?page=all
function of money.
Money has four purposes. It serves as:
Medium of exchange -- i.e. The currency used for bartering one good for another
it serves as the standard numerical unit of measurement of the market value of goods, the value of the program, or transaction
A store of value -- it can be reliably saved, stored, and retrieved and used whenever it is retrieved. Its value remains unchanged.
A standard of deferred payment. - It is an accepted way to settle a debt ( Mishkin .2007)
• Explain how the central bank manages a nation's monetary system.
The Federal Bank manages the nation's monetary system by virtue of three strategies:
It can change the interest rate on money that it lends to banks. A higher interest rate makes money more expensive. Banks may be, therefore, more reluctant to sign loans to applicants. On the other hand, the Bank by…
Board of Govs. Of the FRS. How does monetary policy influence inflation and employment? http://www.federalreserve.gov/faqs/money_12856.htm
Chairman Ben S. Bernanke Semiannual Monetary Policy Report to the Congress Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, Washington, D.C. July 17, 2012 http://www.federalreserve.gov/newsevents/testimony/bernanke20120717a.htm
Mishkin, Frederic S. (2007). The Economics of Money, Banking, and Financial Markets (Alternate Edition). Boston: Addison Wesley.
NY Times. (November 16, 2012) Federal Reserve (The Fed) http://topics.nytimes.com/top/reference/timestopics/organizations/f/federal_reserve_system/index.html
Demand for Money
Money in economics terms can be defined by holding cash or non-interest bearing bank accounts. Since these holdings are less advantages than interest bearing accounts or some form of investment, there has to be some motivation to keep cash or completely liquid assets. There are a range of different motivations that can be used to describe these behaviors. However, most of them use liquidity in one form or another. For example, it is necessary to have liquid assets to make purchases or pay bills for example. So if an individual gets their paycheck they may deposit a portion of the check into some form of investment account, while keeping a portion of it liquid to cover their monthly living expenses.
An individual may also move money to a liquid account if they are planning to make a purchase in the short-term. The demand for holding money can…
Charusheela, S., & Danby, C. (1998). Macro Notes 3: Money Demand. Retrieved from Washington University: http://faculty.washington.edu/danby/notes/notes12.html
Davis, B., Karemera, D., & Whitesides, L. (2013). The intertemporal stability of the U.S. money demand function: new evidence from switching regressions. Applied Economics Letters, 581-586.
Dobnik, F. (2013). Long-run money demand in OECD countries: what role do common factors play? Empirical Economics, 89-113.
Federal Reserve Bank of St. Louis. (2014). M1 Money Stock. Retrieved from Economic Research: http://research.stlouisfed.org/fred2 /series/M1#
In the long run, the volatility of money supply will also only cause changes in inflation rate and thus the nominal GDP of the country, as believed by monetarists, as the markets are believed to be always approaching their full employment rate.
But with evolution of capital markets and appearance of numerous wealth capitalization methods besides holding M1, the velocity of money became very variable rather than stable and equal to one, which made scholars hesitate on the validity of Quantity Theory of Money, while equation of exchange is supported by majority of economics schools.
Besides many contributions made by Knut Wicksell into the economic theory, the major appreciated work is the interest theory implications from his work Interest and Prices, where he separated the notion of monetary interest rate, or interest rate derived from the capital markets; and the natural interest rate, or the interest rate neutral to the…
References Available at http://ingrimayne.com/econ/Money/Equation.html
Friedman, Milton and Schwartz, Anna J. (1965). The Great Contraction 1929-1933. Princeton: Princeton University Press. Available at http://www.econweb.com/MacroWelcome/monetarism/notes.html#3Available at http://www.dallasfed.org/research/ei/ei0401.html . Available at
If the Federal Reserve requirement is 10%, the money multiplier is 10, meaning that banks can lend out 90% of every dollar they receive as illustrated by the following example of multiple deposit creation (Larsson, 2005):
John deposits $10,000 into his checking account at ank a.
ank a Deposit: $10,000
Reserve (10%): $1,000
Lendable Amount: $9,000
Mary borrows $9,000 from ank a and buys a car. The car dealer then deposits $9,000 into their account at ank .
Reserve (10%): $900
Lendable Amount: $8,100
Mark borrows $8,100 from ank . And has surgery. The doctor then deposits $8,100 into his account at ank C.
Reserve (10%): $810
Lendable Amount: $7,290
This process continues until the lendable amount is 0. When M1 is measured, the original $10,000 deposit will have created a total of $100,000 in deposits system wide (Larsson, 2005).
Beale, L. How banks create money. Retrieved October 20, 2006 from Web site: http://ecedweb.unomaha.edu/ve/library/HBCM.PDF
Larsson, T. (2005, February 1). How banks create money. Retrieved October 20, 2006 from Web site: http://www.gold-investor.com/article.php/20050201204730229
Obringer. L.A. How banks work. Retrieved October 20, 2006 from Web site: http://money.howstuffworks.com/bank1.htm
Demand for Money
The international community is currently facing the most severe crisis since the Great Depression of 1929 -- 1933. It started within the American real estate sector and soon expanded to the rest of the sectors, as well as to the rest of the global economies.
The causes and impacts of the crisis have often been discussed in the media and within the specialized literature, and the discussion is far from over. Still, this approach to the crisis is more descriptive and reflective. At this stage nonetheless, it is necessary to implement a proactive approach through which to promote solutions to overcoming the crisis.
Governments across the globe have each developed and implemented their own solutions to the crisis, ranging primarily from injecting capitals in the troubled industry sectors and companies, to efforts aimed at reducing federal costs. In the completion of these efforts, a crucial role is…
Bae, Y., De Jong, R.M., 2005, Money demand function estimation by non-linear conintegration, Ohio State University, http://www.imf.org/external/pubs/ft/wp/1999/wp9964.pdf last accessed on January 17, 2012
Balnaves, M., Caputi, P., 2001, Introduction to quantitative research methods: an investigative approach, SAGE
Barth, R.C., Hemphill, W.L., Aganina, I., 2000, Financial programming and policy: the case of Turkey, Vol. 1, International Monetary Fund
Canova, L., 2006, Estimating demand for money in Jamaica, Munich Personal RePEc Archive, http://mpra.ub.uni-muenchen.de/1023/1/MPRA_paper_1023.pdf last accessed on January 17, 2012
Alan Greenspan's testimony starts with a comparison between the state of the U.S. economy in July 2004, time of his present testimony, and the state of the economy in February 2004, the time of his previous testimony in front of the U.S. Congress.
In February 2004, the main problem of the U.S. economy, as identified by Greenspan, was the fact that the company's increase in income and net profits were related to a better use of human resources rather than on an increase in employment. In other words, despite the fact that the economy was on the rise, it failed to produce new jobs. This was a direct consequence, in Greenspan's opinion, of the risks associated with increased employments, more notably "corporate accounting and governance scandals," a "decline in stock prices" and the overall "geopolitical tensions"
As compared to the unemployment situation in February 2004, the period up to July…
1. Testimony of Chairman Alan Greenspan Federal Reserve Board's semiannual Monetary Policy Report to the Congress. July 2004. On the Internet at http://www.federalreserve.gov/boarddocs/hh/2004/july/testimony.htm
2. CBO's Current Economic Projections. January 2005. On the Internet at http://www.cbo.gov/showdoc.cfm?index=1824& ; sequence=0#table3
3. Yen Heads for Fourth Straight Week of Declines on Economic Growth Concern. Bloomberg. On the Internet at http://www.bloomberg.com/news/markets/currencies.html
4. International Monetary Fund World Economic Outlook. Chapter 2 -- The Global Implications of the U.S. Fiscal Deficit and of China's Growth. Page 64. On the Internet at http://www.imf.org/external/pubs/ft/weo/2004/01/pdf/chapter2.pdf
electronic money, and a description into the various types of electronic money.
Computers and telecommunications devices may come in place of paper currency and checks - during a course of time. Also, electronic ways of transaction of money have turned out widely prevalent. Anyhow, in the recent past debate about "electronic money" has witnessed a dramatic change, narrowing down to the level to which new ways of electronic money will in course of time turn central banks out of date, making them fragile that they cannot manipulate inflation. (Stevens, 72) Electronic money can be considered in terms of electronic substitute for coins and banknotes, which is saved on an electronic gadget such as a chip card or computer memory and which overall is meant for the reason of influencing electronic payments of restricted loans. (Directive 2000/46/Ec of the European Parliament and of the Council, 2)
Electronic money is not…
Bank of International settlements, (BIS). Security of Digital Money. Basel, 1996, 1-11
Board of Governors (BoG) of the Federal Reserve System. The Federal Reserve System: Purpose & Functions. Washington, D.C.: Federal Reserve System. 1994, 1-18.
Bonorris, Steven. Institute for Technology Assessment (ITA) (ed.): Digital Money: Industry and Public Policy Issues. Washington: ITA, October 1997, 44
Directive 2000/46/Ec of the European Parliament and of the Council, 2000, Official Journal of the European Communities, 27 October, 2000, 1-10
Information technology in supply chain management
The supply chain capabilities within a resource-based framework
The supply chain capabilities
Exchange of information
Integration of activities
Supply chain responsiveness
In this paper, we evaluate the role played by information technology in the improvement of supply chain operations. The main aim is to evaluate how information technology can be used in the achievement of a competitive advantage in regard to the supply chain operations. This is conducted in light of factors such as exchange of information, coordination, and integration of interfirm activities as well as supply chain responsiveness.
Supply chain management (SCM) a term which refers to the management of a network of businesses that are highly interconnected but are involved in the intricate process of providing products and services that are required by the end users (customers) (Harland,1996) has been heavily influenced by the advents of the internet. The…
Akkermans, HA, Bogerd, P., Yucesan, E., and Wassenhove, LNV (1999). The impact of ERP on supply chain management: Exploratory findings from a European Delphi study
Aaker, D.A. (1989). "Managing assets and skills: The key to sustainable competitive advantage." California Manage-ment Review 31 (Winter): 91-106.
Bharadwaj, A.S. (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quarterly, 24(1), 169 -- 196
Barney, J., Wright, M., & Ketchen Jr., D.J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625 -- 641.
I. Major Factors
The management of Dream Beauty Company, a manufacturer of consumer beauty supplies and cosmetics, is concerned with the increased costs of its supply chain management. The firm’s supply chain costs recently reached an all time high of $130,000, which could be attributable to various factors including additional sales and increased costs for order fulfillment. Currently, the Dream Beauty’s total order fulfillment is averagely three days despite the order size. Dream Beauty Company has received 3600 orders, provides excellent customer service, and has a discount policy for the channels it services.
II. Major Problem
Despite its highest standards of customer service and industry benchmark in order fulfillment, Dream Beauty Company is experiencing problems in increased supply chain costs and needs to examine the effectiveness of its three-day order fulfillment cycle.
III. Possible Solutions
Dream Beauty’s major problem can be addressed through several potential solutions because of the various…
Finally, Pilarski reviews the explanations which blame airline underperformance on onerous government-imposed restrictions and obligations. Many observers, especially deregulation-fanatics, claim that airline companies are inhibited by excessive government regulation and public ownership of airlines. Pilarski rejects these explanations which attribute financial performance to government interference, stating that airline carriers outside of the U.S. subject to much more regulation have performed better than unregulated airlines.
Overall, Pilarski seems to agree that it is difficult to be profitable in aviation. What Pilarski is saying is that, for this very reason, only serious, competent players should enter the aviation business. The airline industry is a high-risk, high-overhead business, a point which appears to be ignored by the financiers, lawyers, and business consultants who help the foolhardy set up airline companies.
From a methodological perspective, Pilarski does a good job of refuting dubious claims through sound economic reasoning and historical evidence. For…
Pilarski, A. (2007) Why Can't We Make Money off of Aviation? Hampshire: Ashgate.
Contracting and Procurement in Supply Chain Management
Supply Chain Management 5960
This paper comprehensively describes the contracting and procurement function in the supply chain management of an organization. The paper starts with an introduction to the supply chain management and proceeds by discussing the importance of contracting and procurement function for an organization. The paper also describes the whole contracting and procurement process and highlights some risks and ethical issues associated with this function.
Contracting and procurement is the acquisition of raw material, goods, or services from external suppliers or vendors. It is one of the most important functions in the supply chain management of an organization. An effective and efficient contracting and procurement is vital in achieving success in the industry and satisfying the stakeholders through manufacturing capabilities. This paper comprehensively describes the contracting and procurement process which business organizations generally follow while purchasing raw material for their business.…
Arlbjorn, S. (2010). Supply chain management: sources for competitive advantages, 1st edition. A-rhus: Academica.
Bower, D. (2003). Management of procurement, 1st edition. London: Thomas Telford.
Coyle, J.J. (2009). Supply chain management: a logistics perspective, 8th edition. Mason, OH: South-Western Cengage Learning.
Ivanov, D. & Sokolov, B.V. (2010). Adaptive supply chain management, 1st edition. New York: Springer.
ordering strategy is fairly simple, and this is why there were seldom backlogs. Basically, what you want to do is understand the baseline demand. In the real world, we would probably already have this data, but in the simulation we needed to figure that out. So most of the order backlogs occurred initially, and during promotion, when nobody was really certain of demand. Once it was established that demand was a fairly consistent 138 per week, it was much easier to align the orders, and keep inventory levels low.
The biggest issue with this situation is that the supplier was unable to deliver consistently. The supplier really did not seem to have the ability, even knowing what the demand was, to execute on that. My strategy as the wholesaler was simply to try to be an intermediary, and keep my inventory levels low. That is all I can do in…
QuickMBA. (2010). The bullwhip effect. QuickMBA. Retrieved May 25, 2014 from http://www.quickmba.com/ops/bullwhip-effect/
One needs to keep the following questions in mind in order to understand cash flow-in and out of an organization:
1. How much cash does my business have?
2. How much cash does my business need to operate?
3. Where does my business receive its cash? Where does it spend its cash?
4. How do my income and expenses affect the amount of cash I need to expand my business?
Flow-out of cash goes to cover supplies, equipment, payroll and other needs that a business needs to cover in order to achieve its business purpose. Cash is needed for operating expenses, taxes, interest and principal to creditors, and dividends to stockholders. Flow-out of cash enables the business to be conducted. The amount of flow-in, however, determines whether the business can be sustained (i.e. whether there is a profit and a marked profit), and whether it is rational for flow-out to…
Blondin, N.S. Cash Flow-in and Out
Home Depot and Management Tool
• Company background -- must include sales and employment data. Products or services provided. ize vs. major competition.
The Home Depot (NYE: HD) is the world's largest home improvement chain and the fourth-largest retailer of home improvement and construction products and services. Founded in 1978, Home Depot has about 2,500 locations in each of the 50 states as well as in the 10 provinces of ten provinces of Canada and in Mexico and China. It also operates an online company. The company's headquarters are in Cobb County, Georgia, in Greater Atlanta and its CEO is Francis Blake.
Home Depot targets the do-it-yourself (DIY) and professional markets with its selection of some 40,000 items, including lumber, flooring, plumbing supplies, garden products, tools, paint, and appliances. Home Depot also offers installation services for carpeting, cabinetry, and other products. (Hoover.com)
According to Forbes.com:
The Home Depot stores sell…
Builder, (June 10, 2009) Home Depot Tries to Reassert Its 'Power'. http://www.builderonline.com/economic-conditions/home-depot-tries-to-reassert-its-power.aspx
Forbes.com Home-depot http://www.forbes.com/companies/home-depot/
The mission of Money Bag Apparel can be best understood in the company’s tag line: “Clothing you like Royalty.” The idea is to make every customer feel like a million dollars when he or she is wearing Money Bag Apparel without the customer having to spend a million dollars.
The vision of the company is to be making others smile while wearing affordable yet good quality clothing. Money Bag Apparel wants to be the premier clothing line for people who understand the need to look one’s finest. At the same time, people need to be able to buy clothing without spending all their money. Designer brands can run customers deep into debt. Money Bag Apparel’s vision is for everyone to feel great, look great, and not have to spend a great amount of money.
The strategy name for this new product launch is “Tell Your Story” and…
Buch, R., Thompson, G., & Kuvaas, B. (2016). Transactional leader–member exchange relationships and followers’ work performance: The moderating role of leaders’ political skill. Journal of Leadership & Organizational Studies, 23(4), 456-466.
Coetzer, M. F., Bussin, M., & Geldenhuys, M. (2017). The functions of a servant leader. Administrative Sciences, 7(1), 5.
Diebig, M., Poethke, U., & Rowold, J. (2017). Leader strain and follower burnout: Exploring the role of transformational leadership behaviour. German Journal of Human Resource Management, 31(4), 329-348.
Hamdani, M. R. (2018). Learning how to be a transformational leader through a skill-building, role-play exercise. The International Journal of Management Education, 16(1), 26-36.
Hunter, P. (2020). The growth of social media in science: Social media has evolved from a mere communication channel to an integral tool for discussion and research collaboration. EMBO reports, 21(5), e50550.
Oke, A. E., Ogunsemi, D. R., & Adeyelu, M. F. (2018). Quantity surveyors and skills required for procurement management. International Journal of Construction Management, 18(6), 507-516.
B) Parts suppliers, metal shapers, tire makers, etc.
C) To make a profit and establish relationships with automakers and other customers
D) Shippers might want to make more profit while people using the shipper want to keep costs down
E) It can slow or shut down the movement of parts and supplies, like with a hurricane or volcano eruption
A) The service, paperwork, pens, mail service, etc.
B) Yes. Each firm is trying to provide a service for a profit . . . the loan, underwriters, etc.
C) The goods of service supply chains are more abstract whereas they are more physical and tangible with product supply chains
Shipping. It used to be just cars and trucks but now they use bigger trucks and planes
A vertical company would have a singular supply chain system. A horizontal one would probably have a supply chain system for each smaller…
Supply chain integration (SCI) has been characterized as; endeavoring to hoist the linkages inside of every segment of the chain, to encourage better choice making and to get every one of the bits of the chain to cooperate in a more proficient manner (and along these lines), making supply chain perceivable and recognize bottlenecks. As of late, a more all-encompassing meaning of SCI was expressed as the extent to which a producer deliberately teams up with its supply chain partners and cooperatively oversees hierarchical procedures, within and without, with the objective to accomplish powerful and proficient streams of items and administrations, data, cash and choices, to give greatest worth to the client requiring little to no effort and fastness (Afshan, 2013).
In the previous decade, store network administration, as an exploration zone, has developed to get real consideration from scholastic groups crosswise over orders. Professionals of various fields have likewise…
Afshan, N. (2013, December). The performance outcomes of dimensions of supply chain integration: A conceptual framework. Business: Theory and Practice, 14(4), 323.
Amue, G. J. & Ozuru, H. (2014, December). Supply chain integration in organizations: An empirical investigation of the Nigeria oil and gas industry. International Journal of Marketing Studies, 6, 129-133.
Childerhouse, P., and Towill, D. R. (2011). Arcs of Supply Chain Integration. International Journal of Production Research 49.24: 7441-28.
Kim, Dong-young. (2013). Relationship between Supply Chain Integration and Performance. Operations Management Research 6.1-2: 74-90.
raising minimum wage relates supply demand analysis. • If raise minimum wage businesses compensate raise workers? • According United States Department Labor, Minnesota's current minimum wage large employer's small employer's hour? • How hard working people expect ahead minimum wage low? • Due cost living minimum wage increase? This a comprehensive paper a minimum library resources.
aising the minimum wage: Supply and demand analysis
Although there is a great deal of disagreement about how to regulate the minimum wage in America, statistics indicate that the minimum wage has not been keeping pace with inflation. "The federal minimum wage is just $7.25 an hour and hasn't been raised in three years. But a raise is much more overdue than that. If we look at the minimum wage 44 years ago, and simply adjust it for inflation, it would be more than $10 today" (Weisbrot 2012). However, there is tremendous resistance to…
Cahill, Ben. (2012). The effect of the minimum wage on getting a foot-long Subway.
Tutor2U. Retrieved: http://www.tutor2u.net/blog/index.php/economics/comments/the-effect-of-the-minimum-wage-and-getting-a-foot-long-subway
Characteristics of minimum wage workers. (2012). Bureau of Labor and Statistics. Retrieved:
What is Money?
Money is anything that is accepted as a form of payment and in the modern world this typically currency. Today's currency is essentially created by governments, and backed by their ability to tax. Thus, money today derives from both the legitimacy of the state and from the revenues of the state. Money is typically issued by a central bank, and it has considerable leeway with respect to how much money it issues. The value of money is determined by the supply of and the demand for money.
The supply of money is controlled, as we've said, by the central bank. Demand for money is based on the need for that currency to make transactions. So demand for Japanese yen is in part related to how much yen people need to buy goods and services from Japan. The same is true of all currencies, including the U.S.…
CIA World Factbook: Puerto Rico. (2013). Retrieved May 3, 2013 from https://www.cia.gov/library/publications/the-world-factbook/geos/rq.html
Investopedia (2013). What is money. Investopedia. Retrieved May 3, 2013 from http://www.investopedia.com/articles/basics/03/061303.asp
Supply Chain Management
An Overview of Supply Chain Management which Includes Two Recent Examples
Supply Chains as a Competitive Advantage
Supply chain management (SCM) stands at the forefront of operation management in most organizations. The concept of SCM involves how to transform inputs and add value to a product or service. The efficiency and effectiveness of a SCM function has a direct effect on how successfully the business can compete in the marketplace. Some of the focal points of SCM deal with how to remove communication barriers between and organization and its suppliers, how to effectively coordinate activities, monitoring progress, and controlling internal and external processes to make the production capabilities as reliable as possible.
Although there are many aspects to effectively managing a supply chain, one of the most important aspects to effectively managing a supply chain is to create better downstream visibility and…
Faber, D. (2012). The New Age of Walmart. Retrieved from CNBC: http://www.cnbc.com/id/18803817
Meyer, D. (2011, February 3). Can Apple Redeem Itself on Supply Chain Sustainability? Taking a Cue on Accountability from Nike's Playbook. Retrieved from Valuestreaming: http://valuestream2009.wordpress.com/2011/02/03/can-apple-redeem-itself-on-supply-chain-sustainability-taking-a-cue-on-accountability-from-nike%E2%80%99s-playbook/
Moore, M. (2010, February 27). Apple admits using child labour. Retrieved from The Telegraph: http://www.telegraph.co.uk/technology/apple/7330986/Apple-admits-using-child-labour.html
Wailgum, T. (2011, June 6). Gartner Top 25 Supply Chain: Apple Tops, SAP Customers Abound. Retrieved from SAP News, Analysis and Insight: http://www.asugnews.com/2011/06/06/gartner-top-25-supply-chain-apple-tops-sap-customers-abound/
Operations Management & Supply Chain Management
The case study is touches on the development and production of a board game known as X-Opoly, a game similar to the famous monopoly. X-Opoly was the idea of two students in their first year at college who envisioned creation of a knockoff real estate game similar to monopoly. However their business underwent rapid growth and currently they expect to sell about 50,000 units. Over the period of the next five years they project increase in sales by 25% each year. The order for the games come in two distinct manners, with the first being ordering for an already existing game and the second being a new game. For a new game to be ordered for, the client and an employee in the art department normally sit down and come up with a design according to the specifications of the client. The time taken…
Bisk Education, (2013). What is the Importance of Supply Chain Management? Retrieved October 30, 2013 from http://www.usanfranonline.com/importance-of-supply-chain-management/
Zigiaris S., (2010). Supply Chain Management. Retrieved October 30, 2013 from http://www.adi.pt/docs/innoregio_supp_management.pdf
Pamplin College of Business, (2012). Operations and Supply Chain Management. Retrieved October 30, 2013 from http://www.bit.vt.edu/academics/osm_index.html
Slack N., Chambers S. & Johnston R., (2010).Operations management. Retrieved October 30, 2013 from http://www.pearsoned.co.uk/media/onlinepreview/slack_9780273731603/assets/pdf/9780273731603_fm.pdf
financial assets in order to recommend the appropriate investment vehicle for the client. Analysis of different investment vehicles shows that ETFs are the best investment option for our clients. The ETFs are the basket of securities that combine stocks, bonds, cash, commodities and other securities. The report diversifies our investment options choosing the stocks, bonds and cash from different industries. Based on the historical data, our average annual returns are 38% revealing EU 32,997 as our annual returns from our initial investment capital of EU 100,000. After 3 years, the net worth of our investor will be EU 457,901, which include the cumulative returns and the capital. However, the net worth of our investor will be EU 5.38 Million after 10 years. The report also carries out the sensitive analysis on the investment option assuming that our investment choice is affected by the macroeconomic forces. The report reduces our annual…
Costa, D. (2011). The Portable Private Banker Investing Efficiently through Mutual Funds and ETFs. UK. CreateSpace Independent Publishing Platform.
Costa, D. (2011). The Triumph of Intelligence. UK. CreateSpace Independent Publishing Platform.
David White & Associates (2011).The Benefits of Diversification. USA.
Justice, P. (2013). ETF Investor Recommendations for commonsense ETF investing. Morningstar Investment Report .
The operating decisions that must be made by Thomas Money include the level of output that the company needs to have in response to the prevailing economic conditions. The company is facing a difficult economic environment at present. Thomas Money's performance is strongly correlated with economic measures that focus on construction, such as new housing starts and new business or institutional construction. In the current environment, housing starts are entering into a long period of decline following the bursting of an unsustainable housing bubble (Byun, 2010). The one bright spot in Thomas Money's business is that there is strength in institutional construction in the health care industry, as the elderly population increases, driving increased demand for health care services (no author, 2007). However, this improvement is not enough to keep Thomas Money's customer in business and as a result the company is facing a high level of repossessions.…
No author. (2007). Health care demand rising, population aging: The imperative to increase physician supply. Health Care News. Retrieved February 3, 2012 from http://www.gnyha.org/5834/File.aspx
Byun, K. (2010). The U.S. housing bubble and bust: Impacts on employment. Bureau of Labor Statistics. Retrieved February 3, 2012 from http://www.bls.gov/opub/mlr/2010/12/art1full.pdf
Landsburg, L. (2007). Comparative advantage. Library of Economics and Liberty. Retrieved February 4, 2012 from http://www.econlib.org/library/Topics/Details/comparativeadvantage.html
Investopedia. (2011). Interest rate parity. Investopedia. Retrieved February 4, 2012 from http://www.investopedia.com/terms/i/interestrateparity.asp#axzz1lFGk3bQ3
Overall the proper supply chain management system provides a company with an obvious competitive advantage.
Improvements to this system, supplier certification
This particular system has been quite advantageous for Dell and other companies. However, all supply chain management systems can be improved. One of the changes that can be made is an increase in the options that are available to consumers. Increasing such options will increase customer satisfaction and lead to greater customer loyalty. In addition this improvement can lead to an even greater competitive advantage for the company.
As it pertains to supplier certification all supply chains benefit greatly when suppliers are certified. As it pertains to quality management the ISO 9000 standards are often sought after. These standards provide companies with certain guidelines that are designed to assist them in attaining total quality management. As it pertains to supply chain management these standards are important for suppliers because…
"Benefits of Mass Customization." Retrieved September 7, 2009 from: http://www.managingchange.com/masscust/benefits.htm
From the supplier to the store shelf. "Supply Chain transformation for retailers and wholesalers. Retrieved September 7, 2009 from: http://www.logisticsasiapacific.com/main_images/PDF/FromSupplierToShelf.pdf
Hunter D. (Dec. 16, 2005) Tying Supply Chain to Customers: How Dell succeeds in an increasingly competitive market. Retrieved September 7, 2009 from: http://www.industryweek.com/articles/tying_supply_chain_to_customers_11124.aspx
Kaplan a.M., Schoder, D. And Haenlein M. (2007) Factors Influencing the Adoption of Mass Customization: The Impact of Base Category Consumption Frequency and Need Satisfaction. The Journal of Product Innovation Management. 24:101 -- 116
This allows for greater levels of planning and cooperation, and fills in the information gap that currently exists between the factory floor and the rest of the supply chain.
Lexmark provides an example of waste. Recently, the company found itself with more than $1 million in scrap from one lot. Engineers had insufficient information to isolate and fix the problem, so were instead relegated to crisis control. With more accurate data from each step of the operation, the engineers could have been more involved in the process and made improvements along the way before it became a large-scale crisis.
Through web-based business applications, engineers can now examine a defective printer cartridge and then use a thin client to put a hold on the entire batch if necessary, regardless of its physical location (anywhere in the world)
In conclusion, it is apparent that e-business is making its mark on the business…
Alexander, Michael. (2001). Factory Floors Go Online -- Pioneering manufacturers close the final gap in their supply chains. InternetWeek; Manhasset; Mar 12, 2001.
2002) Automotive Design & Production. Cincinnati, 114(8), 70-72.
Steele, a.L. (2001). Cost drivers and other management issues in the JIT supply chain environment. Production and Inventory Management Journal. Alexandria, 42(2), 61-68
Drickhammer, D. (2001, May 21). Peak performance. Industry Week. Cleveland, 250(8) 36-40.
Subway Supply and Demand
Supply and Demand
Subway Corporation: Supply and Demand
Supply and demand of a good or service in economics is the basis for economic analysis in its entirety. Supply and demand centers on the different quantities that a producer or producers will make available to the market at different prices over a given period of time. The law of supply and demand is twofold. The law of supply functions that as price increases, producers are willing to produce and sell more, while if price decreases, producers are willing to produce and sell less. The law of demand is vastly similar. It functions in a manner that as price increases, the quantitiy people are willing to buy decreases, while as prices decrease, the quantity that people are willing to buy increases. The law of supply and demand illustrates a constant push-pull between the products that are…
Arnold, W. (2007). A Thirst for Milk Bred by New Wealth Sends Prices Soaring. New York Times. Web. Retrieved from: http://www.nytimes.com/2007/09/04
Dohery, Regan. (2007). Milk Demand Stays Strong Despite High Prices. Reuters. Web.
Retrieved from: http://archive.newsmax.com/money/archives/st/2007/6
Supply and Demand at Subway
Supply and demand refer to much of the product the firm produces and how much of a product the consumers want, and each of these is affected by a number of factors (Investopedia, 2011). Among the factors that affect supply are the expected demand, the expected price the firm will receive, the price of inputs and the competition in the market (EconPort, 2006). Thus, if there are more competitors, Subway might feel like demand was going to be lower, and then it would produce less. There is a relatively short lead time for ordering, which means that an individual store might be able to make changes based on changes in demand very quickly. For the company as a whole, supply decisions are about store openings and closings, and these can also be affected by internal factors, like the need for capital.
There are also…
Danzinger, L. (2007). The elasticity of labor demand and the minimum wage. IZA. Retrieved December 8, 2011 from ftp.iza.org/dp3150.pdf
Doyle, J. (2006). Employment effects of a minimum wage: A density discontinuity design revisited. MIT Sloan School of Management. Retrieved December 8, 2011 from www.mit.edu/~jjdoyle/doyle_mw_oct06.pdf
EconPort. (2006). Factors affecting supply. EcoPort. Retrieved December 8, 2011 from http://www.econport.org/content/handbook/supply/changeSupply.html
Investopedia. (2011). Economics basics: Demand and supply. Investopedia. Retrieved December 8, 2011 from
(Illicit Drugs or Nutritional Supplements?) It is more likely that some illegal gratification was sought and not received and that led to this action. Since this was also a case for medicines, one should also be careful of the problems that may come up.
What has been stated earlier is that it would be better to leave the enterprise to operations by South Africans and in that case, they will determine most of the staffing. It is not advisable clearly that many ozambicans be depended on for operations at least due to their ability. An example of this has just been stated.
2. Training and Development
When we are talking about a business and a possible collaboration with an existing business owner, they would have completed the training in an operating business. This would be helpful as the culture of South Africa and ozambique would be similar.…
Mozambique- people and society. Retrieved at http://www.oxfam.org.uk/coolplanet/kidsweb/world/mozambique/mozpeop.htm . Accessed 11 October, 2005
Mozambique-South Africa - Investment climate generally favorable, new report. 2 June 2004.
Retrieved at http://www.irinnews.org/report.asp?ReportID=41385 . Accessed 11 October, 2005
purchasing may be done based on the needs of the firm, billing is automatic and generated from the purchasing process; inventories are keyed in so that out-of-stock or backordered items are known immediately, transfers to and from particular departments are automatic, and at all times there is a real-time picture of the situation for management. In the case of a networked-based supply chain vendors may be evaluated based on past data and models made to ensure efficacy; while the accounting (cash) cycle may be compressed because of monitoring and accuracy in paying and ordering exactly what is necessary. arehousing activities are easier to predict, as are the human resources necessary to ensure proper supply.
5. Increase supplier efficiency with real time information on firm/planned orders and forecasts. Use a "sense and respond" supply chain paradigm offers much more than many traditional approaches to supply chain management in that it enable…
Jongebloed, J. (2007). Focused Logistics -- "Sense and Respond Logistics."
Logistics Spectrum. 41 (3): 21-9.
Perera, D. (2007). Running Lean. Government Executive. 39 (8): 43-7.
Watson, G. (2007). Strategic Benchmarking Reloaded with Six Sigma. New York: John Wiley.
WalMart Supply Chain Innovation
WalMart is the world's largest retailer and know as a leader in supply chain management. The way in which WalMart has innovated in terms of the way that the supply chain is management which has included looking at the structure and processes used in the supply chain as well as embracing and leveraging technology. The results have been a reduction in costs and improvement in overall efficiency.
The innovations at WalMart are not all recent; with WalMart constantly adapting and changing. One of the first major innovations, and one which is still in use today started during the 1980s, was the removal of links in the supply chain. A strategy adopted by the company with the aim of creating create efficiency and cutting costs was the development of direct relationships with suppliers, working directly with the manufacturers are supplied many goods, cutting out the…
Carter, M, (2014, Feb 22), Why Whole Foods Market May Have a Big Problem, Motley Fool, accessed 22nd Feb at http://www.fool.com/investing/general/2014/02/22/why-whole-foods-market-may-have-a-big-problem.aspx
Lambert, T, A, (2008), Four Lessons from the Whole Foods Case, CATO Institute, accessed 22nd Feb at http://object.cato.org/sites/cato.org/files/serials/files/regulation/2008/2/v31n1-4.pdf
MacKey, J; Robb, W, (2013). Letter to Stakeholders, accessed 22nd Feb 2014 at http://www.wholefoodsmarket.com/sites/default/files/media/Global/Company%20Info/PDFs/WFM-2013-Letter-to-Stakeholders.pdf
Meador, Don; Britton, Mike; Phillips, Paige; Howery, Andrew, (2007), Case Analysis -- Whole Foods Market, accessed 22nd Feb 2014 at http://pnphillip.asp.radford.edu/whole%20Foods%20Case.pdf
supply chain integration important to organizations?
Proper supply chain integration allows organizations to save both time and money. A "totally integrated supply chain enables an end-user to more efficiently and cost-effectively manage manufacturing, inventory, and transaction costs" through streamlining (Sims 2013). With an integrated supply chain "every aspect of the supply chain process -- including acquisition, storage, logistics, installation, post-shipment support, and information systems" is focused upon "eliminating redundancy of effort and cost, and improving service levels" (Sims 2013). For example, by having the manufacturing department in constant dialogue with the companies providing inventory and providing up-to-the-minute information on the parts that are needed, companies can reduce the need for high levels of inventory and thus contain costs. Lower inventory reduces the risk of product obsolescence and waste (which occurs when too much inventory builds up) or, conversely the company losing revenue if it is under-stocked.
However, effective supply chain…
Sims, D. (2013). Integrated supply chains maximize efficiency and savings IMT. Retrieved from:
Traub, T. (2012). Wal-Mart uses technology to become supply chain leader. Arkansas Business.
Retrieved from: http://www.arkansasbusiness.com/article/85508/wal-mart-used-technology-to-become-supply-chain-leader?page=all
The keystone species of this ecosystem is pricing and the systems to support their definition, management and exception management. Pricing as the keystone specifics of selling and service systems also acts as a catalyst of the quantity and profitability of transactions. Pricing also acts as the defining element of how elastic or inelastic demand for products will be as well. Pricing is so potent as a keystone species it can communicate in an instant what the value of an entire business is. Consider the pricing for a diamond ring that is real, over 4 karats large, versus a cubic zirconium imitation and the example becomes very clear. The price of a Yugo car vs. A new Mini also shows this point, and even in commoditized products pricing still sends a very clear message of implied value and market position.
The information ecology of a selling and service ecosystem also requires…
Purchasing and Supply Chain Management: Apple
Apple Inc. (previously Apple Computer, Inc.) is one of the largest American multinational companies that designs and markets consumer electronics, computer software and personal computers. The company began in the business of personal computers but has expanded into a giant of global reach (lLinzmayer 1999). Currently, they are best known for McIntosh computers, the iPod, iPhone, and iPad. They are the proprietors of the Mac OS X operating system and the iTunes media browser. They offer the iLife suite of multimedia and creativity software, iWork productivity software, and Aperture for professional photographers. Their current list of offerings is extensive and includes other applications for specific industries or uses.
Apple's current distribution system includes a chain of their own retail stores in ten different countries around the globe. They also have an online store where they hardware and software products are sold. Apple's major competition…
Apple Inc. 2009. Suppler Responsibility. 2010 Progress Report. Available at: < http://images.apple.com/supplierresponsibility/pdf/L418102A_SR_2010Report_FF.pdf . > [Accessed May 18, 2011.}
Frommer, D. 2011. Gene Munster: Apple Supply Chain Temporarily Affected By Japan Earthquake, But "Demand Stronger Than Ever" (AAPL). March 17, 2011. SF Gate. Available at: < http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/03/17/businessinsider-gene-munster-apple-supply-demand-2011-3.DTL >. [Accessed May 18, 2011].
Linzmayer, Ronald W. 1999. Apple Confidential: The Real Story of Apple Computer, Inc.. No Starch Press. Available at: < http://extras.denverpost.com/books/chap0411h.htm . > [Accessed May 18, 2011]
Rassweiler, A. 2011. iSuppli press release: Japanese Earthquake Poses Potential Supply Problems for iPad 2, March 17th 2011. iSupply. Available at: < http://www.isuppli.com/Teardowns/News/Pages/Japanese-Earthquake-Poses-Potential-Supply-Problems-for-iPad-2.aspx >. [Accessed May 18, 2011]
Productions Operations Management
Supply Chain of Zara
Supply Chain of the etailer ZAA
Fashion industry is no more the game of rich only. The cost effective fashion businesses have helped penetrate the fashion industry so deep that today even an average earner can enjoy latest fashion by Zara. Being a Spanish retail fashion designer, Zara is strongly accepted fashion brand in Europe, America and United Arab Emirates. In less than 50 years' time, since 1975, Zara has achieved a status others might take centuries to reach. Zara promises quality as well as affordable prices (Zara: Official Website, 2013). While fashion industry mainly depends on new, creative, original ideas, this report studies if supply chain management is important for Zara too and how supply chain management can be used as a competitive advantage.
How the supply chain management can be used as a competitive advantage?
Supply Chain Management
Thompson, D., (2012), "Zara's Big Idea: What the World's Top Fashion Retailer Tells Us About
Innovation," Retrieved from: http://www.theatlantic.com/business/archive/2012/11/zaras-big-idea-what-the-worlds-top-fashion-retailer-tells-us-about-innovation/265126/
What is the Importance of Supply Chain Management? (2013), Retrieved from:
business clusters and supply chains, first supply chain must be properly defined. A supply chain comprises of all parties either indirectly or directly involved, performing actions that satisfy a customer demand. Supply chains include several parts that work together to supply the customer. The manufacturer and suppliers are in one part of the chain with retailers, transporters, warehouses, and customers being in the other end. The supply chain includes all the processes necessary to get the desired product or service into the hands of the consumer. A good example of this is milk production. The farmers involved in supplying the milk to the consumers must first deal with packagers, followed by distributors, then shippers, and finally vendors who sell the product, in this case, a carton of milk, to the consumer.
Supply chains are managed by several individuals and bodies involved in business. Utilizing the model of milk, the supply…
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Over the next five years, they are working on increasing this amount to as close to: 100% as possible. With the company estimating that such a move would cut logistics costs between $4 billion to $12 billion, over the course of 5 to 15 years. (Cassidy, 2010) This is significant because it shows that the ability of Wal-Mart to seek out ways to reduce logistics costs, are helping to improve the overall cost structure of the company. At which point, this allows their profit margins to increase and they can begin expanding into other areas.
Clearly, one of the biggest elements that contribute to the overall success of Wal-Mart is their ability to control costs associated with their supply chain. This is important because it underscores how Wal-Mart was able to maintain it low cost structure, despite expanding rapidly in size. Where, the elements of: the company owning / operating…
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Cassidy, W. (2010). Wal-Mart Squeezes Costs from the Supply Chain. Retrieved May 21, 2010 from Journal of Commerce website: http://www.joc.com/logistics-economy/wal-mart-squeezes-costs-supply-chain
Chandran, P. (2002). Wal-Mart's Supply Chain Practices. Retrieved May 21, 2010 from Mohan Chandran website:
green supply chain operations are important in today's marketplace. Sustainable growth and development is at the top of the news today, for a number of reasons. More people are developing an awareness of green issues and sustainability, and more people are demanding a greener footprint from the industries they do business with or purchase their products. Because supply chains are such an important part of most businesses, it is important for supply chain management to recognize the many benefits of going green with their supply chains.
Going green has become an important business issue for a number of reasons. First, a swell of public opinion is pushing businesses to go green, because of concern for business' contribution to climate change and other global environmental problems. In addition, green living has become much more common and trendy, and informed consumers are demanding more accountability for the companies where they purchase goods…
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Editors. "The Lean and Green Supply Chain." EPA.gov. 2000. 13 June 2009.
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Milwaukee Surgical Supplies
To calculate the firm's average collection period, we take a weighted average of the payment schedules. The terms of sale are 3/10, net 30. This means that customers of Milwaukee Surgical Supply are to pay their bills within 30 days. They receive a 3% discount if they pay within ten days. Gross sales for the year are $1,200,000.
30% of customers pay on the tenth day to receive the discount. 40% pay on the 30th day, and 30% pay on average of 40 days. Thus, the average collection period is:
(.3)(10) + (.4)(30) + (.3)(40) = 27 days.
To calculate the current receivables balance, the receivables turnover ratio can be used. This ratio is:
Receivables turnover in days = 360 / (Total Sales / Avg. Receivables)
(total sales / receivables) = 360
$1,200,000 / receivables = 360/27
$1,200,000 = (13.33) receivables = $1,200,000 / 13.33 = $90,000…
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In the 1999 report of William Cohen to the U.S. President and U.S. Congress reveals that the strategic vision sets out what the United States has on its agenda to accomplish in relation to technological and logistical strategies. Included in these strategies are modernization of intelligence processes as well as security, information operations, information assurance, and critical infrastructure protection. In a 2004 Department of Defense Submission - Joint Standing Committee on Foreign Affairs, Defense and Trade Inquiry into Australian-United States Defense Relations' report, it is stated that the alliance, now ongoing for approximately fifty-three years between the United States and Australia "has never been closer." (2004) it is stated that the ANZUS Treaty provides "shape, depth and weight to the Australia-U.S. alliance and remains today the foundation of a relationship that is one of our greatest national assets." (Cohen, 2004) the continued commitment of the United States to the Asia…
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Cohen, William S. (1999) Annual Report to the President and the Congress. Secretary of Defense DOD report 1999. Online available at http://www.dod.mil/execsec/adr1999/index.html
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Still, since it is looking to sell a property asset that is not their main residence, they will be required to pay a capital gains tax, in the amount of 18 per cent (Direct Gov). For an estimated retail price of £150,150, and a tax rate of 18 per cent, Olly Lloyd would have to pay £27,027 in taxes.
For the new employment contract, Lloyd would have to pay taxes in the amount of £5,281. The sum is decreased significantly by deductions adherent to contributions made by Olly to the pension funds (Listen to Taxman).
c) Suggestions for financial management
Leone Lloyd-Cardle is, without a doubt, facing severe problems. In order to restore the responsibility and stability of her financial decisions, the following financial management recommendations are made:
Discussing the problem with her husband. Having reached such a high level of debt indicates severe problems which cannot be overcome by…
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Cash is the main basis of financial management in a new company. In most instances, the period between payment of suppliers and employees as well as a collection of debt from the customers is often a challenge. The solution to all these financial challenges is sound financial flow management. Managing of cash flow means delaying expenditures of cash and at the same time ensuring anyone owing the business pays up rapidly.
Managing Cash in a new business
Measuring of cash flow is necessary as accurate financial flow projection helps the business owner to be aware of an upcoming business challenge before it happens. On the other hand, cash flows should not be used to gauge the business environment in the future. There are a number of elements that need to be considered to counter the challenges. The factors are evaluating the payment histories of the customers, business thoroughness…
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supply chain dynamics and what part forecasting and supply chain infrastructure plays in the development and movement of a new product, let alone one that has been around a while and whose sales are predictable. Of course, individual supply chains and the systems they make up play a large part in the overall results for everyone. There is also forecasting and how it affects just-in-time (JIT) production and lean production and this is especially true in automotive manufacturing plants. While other systems may yield decent to great results at times, proper forecasting coupled with the right supply chain system, such as JIT and Lean, are the normal coin of the realm and this will likely not change for some time.
Forecasting is the art of projecting how much of an item or supply will be needed and what will need to happen to get things where they are needed…
Bohme, T., Deakins, E., Pepper, M., & Towill, D. (2014). Systems engineering effective supply chain innovations. International Journal Of Production Research, 52(21),
Cheng, Y. (2014). Memory Module Manufacturing. TIER Industry Report - Memory
Module Manufacturing, 1-14.
Money Its Value?
Using objects such as shells, coins, and other things of value to a community or individual has been practiced for thousand of years. If a close enough look could be taken, spending "money" probably started with Adam and Eve. When this exchange of tokens of some sort takes place, the tokens acquire a worth and enable the spender to obtain goods or services.
Money is defined as, "any definite or indefinite object which has value to both parties involved in the transaction." (Webster's New World Dictionary, 2nd College Edition).
Many different goods have been used as money throughout history. Over the centuries, only two commodities, gold and silver, have emerged as money in the free competition of the market, and have displaced the other commodities. In a free market, the medium of exchange is developed by people and their economic interactions. This is what establishes what money…
Product or Service Supplied
The product supplied to patients is generic pharmaceuticals. “A generic drug is a pharmaceutical drug which is equivalent to a brand-name product in dosage, route of administration, strength, quality, Kinetics, and its intended use. It may also refer to any drug which is marketed under its chemical name without advertising” (Moin, 2016). The importance to the customer is an issue of affordability: the patient has to incur fewer out of pocket expenses in order to pay for crucial prescriptions in order to fulfill the needs of their chronic diseases or conditions. Generic drugs are essentially the ones that are comparable to their brand-name twins. “They are comparable in terms of the dosage, effectiveness, and intended use. Generics are important because they are essentially a less-expensive alternative to their brand-name counterparts. This, of course, is expected to be important to those who are ultimately picking up the tab, governments,…