...supply and demand circle has on those rentals and their respective worth through various scenarios. Good Life Mgmt. is a property management organization that controls and manages the apartment rentals in Atlantis. Good Life has a monopoly in the market in Atlantis since it is the only company who manages rentals in the city at this time. The only “rival” or competitor or “closest substitute is rental detached homes, provided by Oakridge Builders” (Apollo Group, Inc. 2003) Atlantis is a city with over 2,000 two bedroom rental apartments. The town has a healthy population and its growing. There are quite a few people who are renting these apartments, and that number is growing as well. It is very important to be aware of the situation that is occurring in the local economy of Atlantis, and it is equally important to stay abreast to developments in both macroeconomic and microeconomic perspectives. On the subject of microeconomic perspectives, it is important to understand how the residents of Atlantis will be affected by the supply and demand of these rental apartments. If the rates of these apartments are rise even slightly, would people be capable of making the necessary adjustments and be able to make rent in these apartments? Macroeconomics incorporates the economy as a whole. In the beginning of the simulation, the town of Atlantis had a healthy population with individuals and couples renting these units. However, when Good Life Company came to Atlantis, the demands for two-bedroom...
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...Learning Team Reflection: Supply Chain and Demand Model ECO/372 Learning Team Reflection: Supply Chain and Demand Model The topic that we are discussing is supply chain and demand model. We have learned many valuable tools over the past four weeks that has lead us to this topic. We learned about historical economic data, economic forecast data, aggregate demand and supply models. Each of these topics has aided us in learning the fundamentals of Macroeconomics. This week we discussed the relationship between supply chain and the supply and demand mode. We will explain what each is and how they work together. Our goal is to gain and give a better understanding of the relationship between the two. Supply Chain and Demand Model A Supply Chain is a network of companies and services that have products available to consumers. “Historically, the three fundamental stages of the supply chain; procurement, production and distribution, have been managed independently” (Thomas & Griffin, 1996, p. 1). The supply chain gets a good or service from the supplier to the consumer. Goods are often produced anywhere in the world, and the supply chain management makes them available to us locally so we don’t have to travel far to purchase a foreign car, a pair of jeans or a cup of coffee. They make sure we get the best quality for the price we pay. The supply chain consists of purchasing, logistics and the production line. The supply chain exists to bring in the resources...
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...Supply Chain and Demand Model Valerie Prich ECO/372 April 20, 2015 Matthew Angner Supply Chain and Demand Model The relationship between a supply chain and a supply and demand model is an important one. Without this relationship, business would not be able to be as organized with their business. Along with this, the businesses would also not be able to distribute their products to the consumers. The consumers who purchase the products do not realize all of the steps that come with this relationship. There needs to be an understanding of both the supply chain and the supply and demand model. Supply Chain Supply chain is the beginning of a business production. A business must have a supply chain in order to be able to receive products and to distribute them. The definition of supply chain is described as a certain network of other companies that works together to both serve the customer, and the consumer (Supply Chain, 2015). A supply chain is the main link between a business and its consumers. When a consumer purchases a product from a business it comes from a line of other companies. The product might come from one store that manufactures the product, then is sold to another store for a goods price, next it is sold to the customer at the price they are willing to pay. Supply chains are not always used to their full extent. Many companies are unaware of what really goes on within their supply chain. There are businesses that do not know the information flow of the supply...
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...Discuss the relationship between supply chain and the supply and demand model. Over the past four weeks we have learned many important lesions and gained many tools to help us in all of our future endeavors. Some of the things that we have learned about are, aggregate demand and aggregate supply models, economic forecast data, historical economic data, interest rates, money supply, and the Federal Reserve. These topics are key in understanding the concepts of the fundamentals of macroeconomics. This week’s learning team reflection will discuss the topic of the supply chain and its relationship to the supply and demand model. This paper will explain and discuss each of the topics and how they relate to each other and how they work together. The objective of this paper is to help give the readers an improved understanding of the two concepts and their relationship. Supply Chain and Demand Model A Supply Chain is a network of companies and services that have products available to consumers. “Historically, the three fundamental stages of the supply chain; procurement, production and distribution, have been managed independently” (Thomas & Griffin, 1996, p. 1). The supply chain gets a good or service from the supplier to the consumer. Goods are often produced anywhere in the world, and the supply chain management makes them available to us locally so we don’t have to travel far to purchase a foreign car, a pair of jeans or a cup of coffee. They make sure we...
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...Demand driven supply chain Over the passage of time, the concept of supply chain and planning has gained considerable need on the retail brand in the society today. It is because the two are interred twined based on the end product and the needs of the consumer. As such, most of the companies have noticed the gap that exists between supply chain and the final product given to the consumer (Mendes, 2011). Retrospectively, they have invested a great deal of manpower and resources into planning solutions to respond to the need and remain competitive in the market. The primary focus of such a move is to gain an actual picture of the visibility related to material costs across the supply chain division. To respond to this need, many service providers have come up such as Oracle and SAP. Balancing demand It is evident that even though most of the companies have developed such unique planning solutions. However, the primary question is how to balance between the demand points and to control the variability related to customer demand. At this point, the focal point is how to annihilate the needs of the customers through the supply chain to ensure efficient service delivery and quality goods. In recent times, supply chain service provider namely JDA organized their annual event referred to as Focus. They discussed a great deal about the new form of information technology solutions that companies can adopt to make the supply chain division efficient. At that point, the organizers...
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...Supply Chain vs. Supply and Demand Model ECO372 Supply Chain vs. Supply and Demand Model In today's competitive economic industries, companies are taking strategic steps to solidify a stern supply chain to ensure overall growth in target markets. Companies must have products readily available in order to stay in business and to stay relevant amongst consumers. In the world where millions of consumers are making choices and control what they want to purchase and how often they want to do so strikes a need for more resources and productivity. Businesses are constantly evolving in an effort to become the leader in their industry to attract and appeal to as many people possible. Supply and demand are the key elements in establishing the ultimate value of a consumer product. There are several influential factors that can alter the demand and create changes in production by increasing or decreasing the overall supply. Seasons, trends, advertising and availability all provide a platform for business to act on the need of the consumer market. Supply Chain "A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Within each organization, such as manufacturer, the supply chain includes all functions involved in receiving and filling a customer request. These services include, but are not...
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...Learning Team Reflection: Supply Chain and Demand Model Team A ECO/372 June 11, 2014 Learning Team Reflection: Supply Chain and Demand Model What is a Supply Chain? Supply Chain Management? A supply chain is a network of companies and services that have products available to consumers. For example, grocery stores hire farmers to raise vegetables and contract with different transportation agencies to bring them fresh into the stores. The supply chain gets “a good or service from the supplier to the customer (“Supply Chain”, 2014). Goods are often produced anywhere in the world, not necessarily at the local level; supply chain management makes them available in local neighborhood stores so we don’t have to travel overseas just for a pair of jeans, coffee, etc. They make sure we get the best quality and prices. What is the Supply and Demand Model? Supply and Demand is one of the most frequently used terms in economics (Heakal, 2014). More specifically, demand is referring to a quantity and how much of a product or service is desired by its consumers. Demand does not factor in want or desire; it is based on the number that consumers are ready and willing to actually pay money for. Supply is representative of how much the market can offer. Sufficient supply to meet steady demand leads to an equal balance in Supply and Demand. What is the law of supply? Law of demand? Law of supply is explained as the price of a good or service increases, the quantity of those goods or...
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...Demand Planning: The first step in Supply Chain planning Demand planning or sales forecasting is one most important aspect of any organization whether it is a services or a manufacturing organization. A services organization would be estimating the demand for the services and thereby gearing itself up to service the demand for its services. A manufacturing organization would be estimating the demand for its manufactured goods and hence would be working towards whole lot of activities like supply of raw materials, production capacity, distribution etc. Demand planning plays a very strategic role in any organization as the planning for whole lot of other activities depends on the accuracy and validity of this exercise. For example Sales and...
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..."Customer-Facing Supply Chain Practices -- The Impact of Demand and Distribution Management on Supply Chain Success." Journal of Operations Management 30.4 (2012): 269-81. Print. Research Classification: The authors of this research performed an empirical based study and outlined three objectives to their study: 1. …to provide empirical evidence of whether or not demand management (DeM) does indeed have such a substantial positive impact on supply chain performance; 2. …the simultaneous evaluation of the impact of customer-facing SCM practices related to both DeM and distribution management (DiM); 3. …the analysis of a potentially existing relationship between DeM and DiM, (p270 et al. 1-3). To meet the objectives of their study, the authors “identif[ied] relevant practices to DeM and DiM” through literature reviews and expert interviews, and from here, the authors created a conceptual model and utilized the partial least squares to test their hypothesis, (p269 -70). Statement of Problem: This journal article aims to examine the “relative impact of relative practices associated with demand and distribution management,” (p 269). Defined by the authors as “…the ability of a company to understand customer demand and requirements and balance them against the capabilities of the supply chain,” demand management (DeM) is becoming more and more popular in the operations management field; however, DeM has not been comprehensively analyzed in terms of supply chain performance. Moreover...
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...that this number is significantly lower than the rest of the prior week’s numbers. This dip in sales is what caused the forecasts for the 3 week data to be higher while the forecasts for the 5 week data were lower causing a positive RSFE and therefore a positive tracking signal. Exponential Smoothing Figures 3 and 4 used the exponential smoothing forecast method. Comparing with the moving average, the 3 week data with the alpha of .2 most signifies the data that was recorded in Figures 1 and 2. The rule of thumb when switching from moving average is that alpha equal 2/(n+1). When using this rule our alpha would be .14 which is closest to that used in the 3 week data. The last model was a forecast based on the aggregate demand rather than the demand of each individual sector with an exponential smoothing method with an alpha of .4. I used this method due to the percent error being the lowest on the first...
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... line of bathroom vanities, mirrors, and light fixtures. Today, the company is straining to produce enough products to meet retailer demand. Vanity Products (VP) manufactures a variety of bathroom accessories, including vanities (medicine chests), mirrors, lighting fixtures, and shelving. The products are made of rust-‐ and chip-‐resistant molded plastic and come in a variety of modern designs and colors. The plastic construction permits VP to produce high quality bathroom accessory at an affordable price. In the middle of the 1990s, John focused the company’s marketing attention on the large home center chain stores: Home Depot, Wal-‐Mart, Sears and so on. Today, more than 80 percent of VP’s sales are to these retail chains, and they account for 95 percent of its...
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...and use. e. allows each rater to weight the criteria, but all raters user the same rating scales. 2. To select a potential supplier-partner, the buyer should consider: a. both hard and soft factors with an eye toward long-term outcomes. b. both hard and soft factors with an eye toward short-term outcomes. c. soft factors such as congruence of management values and compatibility. d. hard factors such as quality, quantity, cost, and technology. e. the willingness of the supplier to quickly change processes for results. 3. A goal of supply chain management is to: a. gain competitive advantage by acquiring confidential information from chain members. b. drive down prices through competitive online bidding. c. push inventory as far down the supply chain as possible. d. reduce uncertainty and risks between and among members of the supply chain. e. increase competition by increasing the number of suppliers in the supply chain. 4. Which of the following is a result of forming a buyer-supplier partnership: a. the amount of time committed to the buyer-supplier relationship is greatly reduced. b. buyer-supplier relationships are greatly improved at the expense of internal relationships. c. the buying organization can enjoy the benefits of horizontal integration without the...
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...and use. e. allows each rater to weight the criteria, but all raters user the same rating scales. 2. To select a potential supplier-partner, the buyer should consider: a. both hard and soft factors with an eye toward long-term outcomes. b. both hard and soft factors with an eye toward short-term outcomes. c. soft factors such as congruence of management values and compatibility. d. hard factors such as quality, quantity, cost, and technology. e. the willingness of the supplier to quickly change processes for results. 3. A goal of supply chain management is to: a. gain competitive advantage by acquiring confidential information from chain members. b. drive down prices through competitive online bidding. c. push inventory as far down the supply chain as possible. d. reduce uncertainty and risks between and among members of the supply chain. e. increase competition by increasing the number of suppliers in the supply chain. 4. Which of the following is a result of forming a buyer-supplier partnership: a. the amount of time committed to the buyer-supplier relationship is greatly reduced. b. buyer-supplier relationships are greatly improved at the expense of internal relationships. c. the buying organization can enjoy the benefits of horizontal integration without the...
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...tends to increase as one moves upstream which is called bullwhip effect. It is a distortion in the sharing of information from downstream to upstream in the whole supply chain system; the effects can propagates the enterprise’s marketing, logistic and manufacture. Despite There are lots of factors 9 which could affect the efficiency of supply chain, like organization structure, channel of information, geographical distribution, industry characteristics etc., the bullwhip effect is still one of the most deep-rooted influence factor for the whole system. You cannot find another such kind of element like the bullwhip effect which could affect all parts of the whole supply chain system. No matter what kind of industry the firm are, what place does the firm in or how hard does the firm try by its own, the processes inside of the firm from producing plan to all kind of inventory must be all influenced by the bullwhip effect and hard to avoid. That is why the bullwhip effect is one of the most deep-rooted influence factor. QUESTION 1 (A) Discuss the term “bullwhip effect” and its causes. The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as you move further up the supply chain. The concept first appeared in Jay Forrester's Industrial Dynamics (1961) and thus it is also known as the Forrester effect. The bullwhip effect was named for the way...
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...countries. The company aims at helping every customer become a best-run business by delivering new technology innovations without disruptions. Relevant SC Related Products and Features Netflix provides various software to help companies managing different function areas, like finance, human resources, marketing, and manufacturing. It also has software to manage supply chain cross companies and to achieve sustainability. Netflix’s software for supply chain management has three major features to create value for customers by delivering the perfect order, improving responsiveness, and controlling costs. Therefore, its products can be divided into three areas—demand and supply planning, logistics and fulfillment, and manufacturing network collaboration. Under the three areas, there are different solutions for Supply Chain Management. For example, integrated sales and operation planning solution, which is belong to demand and supply planning, drives faster, more accurate S&OP by integrating your enterprise master data, planning, and reporting processes on an SAP platform. Other solutions include areas of demand management, manufacturing and supply planning, service parts management, collaborative response management, warehouse management, track and trace, and so on. Evaluation of Products and Services As...
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