...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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...In January of 2014, President Bush stood to give his State of the Union address. While addressing many topics. However, with just two sentences uttered in the middle of an hour plus speech, President Bush set forth a ten year motion that would change the face of health care as we once knew it. Towards the middle of the Presidents Union Address, he states “By computerizing health records, we can avoid dangerous medical mistakes, reduce costs and improve care. To protect the doctor-patient relationship and keep good doctors doing good work, we must eliminate wasteful and frivolous medical lawsuits” (Bush, 2004). “President Bush outlined a plan to ensure that most Americans would have electronic health records within the next ten years. Bush believed that innovations in electronic health records and the secure exchange of medical information would help transform health care in America – improving health care quality, preventing medical errors, reducing health care costs, improving administrative efficiencies, reducing paperwork, and increasing access to affordable health care” (The White House, n.d.). The ten years following the 2004 State of the Union Address allowed development of electronic health records (also known as EHRs) to be adopted into health care facilities across the nation. An EHR is defined the Centers for Medicare & Medicaid Services as “an electronic version of a patients’ medical history, that is maintained by the provider over time, and may include all of the...
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...Demand Verses Supply Paper HCS/552 – Health Care Economics March 4, 2013 James Brown Demand Verses Supply Paper Demand of health care services within the health care industry will inherently continue to rise as American society ages. Technological advances in diagnostics and treatment provide individuals the opportunity to seek quality care that can prolong health and wellness for those seeking treatments. The key for the health care industry is to attempt to meet the demand with an adequate supply of quality services that enhance the health and well-being of those seeking care. The value of a new medical technology is determined by supply and demand (Getzen, 2007). Diagnostic radiology is a prime example of the value being determined by both supply and demand. As radiologic imaging advanced from two dimensional x-ray images to three dimensional ultrasound images, magnetic resonance imaging (MRI), and Computed tomography (CT) providing better image quality and increased accuracy of diagnoses, the demand for these services rose. Statistics show that from 1996 to 2006 the frequency of radiology imaging increased nearly 60%, from 61 million studies to 99 million (Klein, 2008). This significant increase in use is directly related to enhance image quality used for diagnosis. This figure will continue to rise as more baby-boomers use these services to diagnose potential health issues that can be determined through radiologic imaging. This paper will discuss the demand...
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...is a situation where the supply is equal to the demand”. The goal of many organizations is to create and continue to create market equilibrium. In this paper market equilibrating, law of supply and demand and inelasticity vs. elasticity will be furthered discussed. Law of Demand and the Determinants of Demand The quantity demanded falls when the price increases. Whereas, the quantity demanded rises when the price falls. According to McConnell, Brue and Flynn (2009), “Demand is a schedule or curve that reveals the various amounts of a product that consumers are willing to purchase at each of a string of potential prices during a specified period of time. Various prices are selected for a particular product in different quantities for the product. The law of demand is the correlation between the demand of quantity and price. For example, a designer coat is retailed for $200 at a department store in the early winter season. During an after Christmas sale, the coats are reduced by 50% to a cost of $100. This sale created more consumer purchases because the price was reduced. As the price went down, more consumers purchased the shoes. The law of demand was utilized throughout this sale process. Law of Supply and the Determinants of Supply The supply of a product within a specific time frame includes various prices for the particular product. When the quantity of supply increases then the price decreases. Whereas, when the quantity of supply decreases then the price...
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...company but just a mile few miles apart. The simplest answer is supply and demand but what actually goes into the decision making part of what gas prices should be? Research shows that 50% of the price of gas is based on the price of crude oil. This is what is refined and turned into gasoline. (Energy: demand vs. supply) Companies have to purchase crude oil to make into gasoline. This cost of purchasing the oil and refining it is then passed down to the customer. As the demand for crude oil or gas goes down, so do the prices. This can happen during recessions or when people travel less. As the demand increases, prices can go up, like during the summer when consumers travel more. Location can also contribute to the price of gas. Some locations can tend to have lower prices because of competition. They’re considered perfect competitive firms because they have to have the best price for the customer to want to come in and purchase their gas. I usually use the Safeway gas pumps instead of going across the street to the Arco station because I can receive a discount but the price is usually always three to five cents less than the Arco station. As I continue to drive to work, I noticed only one gas station was within a close enough range and seemed to have a higher gas price by 10 cents or more. They have a type of monopoly on the gas market because they have few if any competitors. (Energy: demand vs. supply) The gas station is always busy because it’s also the most easily...
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...and maintain competitive advantages utdallas.edu/~metin Manufacturing Cost 45% 3 Operations Management Operations management: The management of the efficient transformation of inputs into outputs to effectively satisfy customers. The active role of operations: – Inputs become Outputs after some Transformation (Process or Operation) – Food processing example: Inputs Energy, Raw vegetables Energy, Metal sheets Energy, Vegetables Energy, Water, Vegetables Energy, Cans, Boiled vegetables utdallas.edu/~metin Transformation Cleaning Cutting/Rolling/Welding Cutting/Chopping Cooking Placing Outputs Clean vegetables Cans Cut vegetables Boiled vegetables Can food 4 Operations in services: Health care Inputs Doctors, nurses Hospital Medical Supplies Equipment Laboratories Processes Examination Surgery Monitoring Medication Therapy Outputs Healthy patients SOM offers medical management MBA and Master of Science See http://som.utdallas.edu/amme/index.html. Question: What are Inputs, Processes and Outputs in education? Who is the customer? utdallas.edu/~metin 5 Operations are everywhere ! Operations Goods producing Examples Farming, mining, construction Storage/transportation Warehousing, trucking, mail, taxis, buses, hotels...
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...DECISION IS WHEN MC=MB • Marginal o Definition=next unit o Marginal cost=cost for next unit o Marginal benefit=benefit for next unit • Opportunity cost o Definition= highest valued alternative that must be given up to engage in an activity WHAT MUST BE GIVEN UP o Lwer opportunity cost= comparative advantage= aka they give up less so should do the duty o Ex: father has kids sweep the shop for him. He can do it if he wanted to, but gives up more because there are other things he could be doing. Since kids have nothing else to do, they give up lessss bc their time is less valued o How it comes up and how it’s used • Capital • Factors of production o Land o Labor o Capital o Entrepreneurship Risk taker • Positive vs. normative o Positive= what is o Normative= what ought to be • PPF(Productions possibility frontier) o Why is it curved, and not linear? o CURVED BC LAW OF INCREASING MARGINAL OPPORTUNITY COSTS BC INCREASING AUTOMOBILE PRODUCTION BY A GIVEN QUANTITY REQUIRES LARGER AND LARGER DECREASES IN TANK PRODCUTIN. • Comparative advantage o Refer to handout o Practice ivy’s method! • Circular flow o Memorize! o Not orange and green one, simplified one o What do the boxes stand for? o What flows from and out of each box? • ADAM SMITH o His book, title and deets about it o Entire title! o “INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF THE NATIONS” Main concepts • 1) Pin Factory o Division of labor! o Essentially, if labor...
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...1 Apple’s Make vs. Buy Decision Tanjaneka Guy Dr. Robert Waldo Human Resource Management Foundations – HRM 500 October 29, 2011 Apple’s Make vs. Buy Decision 2 Best approaches to Recruiting Recruiting can include giving proper interviews. Human Resources recruitment is to build a supply of potential new hires that the organization can draw on if the need arises. Public employment agencies allows employees to register their job vacancies with their local state employment office, and the agency will try to find someone suitable, using its computerized inventory of local unemployed individuals. With rapid growth of internet use, it is becoming more important that a research site have a presence on the World Wide Web. Internet recruiting definitely would be valuable and best suited for Apple’s talent acquisition. Describe the recruiter traits and behaviors leading to successful recruiting The most successful recruiting campaign requires (1) Interaction – The ideal recruiter is able to communicate with others in a warm and helpful manner while building credibility. (2) Spoken communication – The ideal recruiter is able to present information clearly through spoken word. (3) Commitment to task – The ideal recruiter is able to start and persist with specific courses of action while exhibiting a high degree of self motivation and a sense of urgency. (4) Must have insight and need analysis. (5)...
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...Ana Gonzalez Course: Microeconomics For the first time in nearly three years, repeat buyers and investors have overtaken first-time buyers as sales leaders once again in the nation's housing market. The sellers' markets, home sells quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. During buyers' markets, homes may sit on the market for a while before selling, so sellers become more flexible and may even drop their prices. The market is determined by supply and demand. Some buyers and sellers hope to time their purchase to take advantage of market cycles. If buyers aren’t qualified, supply won’t be met and demand will be weaker. Without buyers supply means very little. Demand is a strong determinant of real estate pricing as well, and changes just as supply does. However, the market is not experiencing the traditional trade-up cycle because first time buyers are being sucked out of the bottom of the market by cheap vacant bank foreclosures. Every time a first time buyer buys a vacant home from a bank, three homeowners remain sitting on the market without a buyer. As the inventory piles up, prices come down. As prices come down, foreclosures rise. As foreclosure rise, first time buyers buy from banks. Somebody needs to focus on this dynamic soon, it’s been six years since the boomers first turned 60 and it’s no coincidence that there’s more...
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...24, 2014 Microeconomics and the Law of Supply and Demand The Supply and Demand simulation concept is essential to understand the effects of pricing and availability to consumers on real world commodities. This simulation captures the impact of different scenarios and situation of the property management company, Goodlife Management in the city of Atlantis. In the scenarios and based on the situations that occurred, these factors influences the equilibrium such as adjusting the rental rate of the apartments to maximize revenue. An attempt to increase the price to ensure a sufficient number of apartments to be rented to satisfy the demands, and making modification to the firm's trend from rental apartments to homeownership in order to meet the needs of a growing population due to Lintech Inc (University of Phoenix, 2014). Macroeconomics VS. Microeconomics In the simulation, the concepts of both, study of Microeconomics and Macroeconomics, are examined. Macroeconomics focuses on factors that affect the economy as a whole (Colander, 2013). In the scenario where Lintech company was introduced, the changes led to the whole economy of the city of Atlantis, not just the financial situation of Goodlife Management firm. The firm perceived the increase of residential demands due to the company workers that relocated in the area. However, in the scenario, when the firm increased the rental price due to the foreseen increase of demand of more apartments need to be rented, Goodlife'...
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...Learning Team Reflection: Supply Chain and Demand Definitions Supply Chain According to Investopedia the Supply Chain is defined as the network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer. Supply and Demand In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market. As demand for an item increases, prices rise. When manufacturers respond to the price increase by producing a larger supply of that item, this increases competition and drives the price down. Modern economic theory proposes that many other factors affect price, including government regulations, monopolies, and modern techniques of marketing and advertising (dictionary.reference.com). Relationship The supply chain and supply and demand model are very similar because they both work hand and hand to be successful. Both models can be used to project much needed information of what consumers purchase and the amount they will pay for it. This is very useful to the stakeholders, involved in this process. Essentially these models can predict the consumer’s wants and needs for products on the market and for researching future products. The customers wants is what drives the supply chain. In the demand model the customer is at the...
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...cost vs. Additional benefit. Capital- (not money) Equipment, Machinery, Factories Economics- the study of how we deal with scarcity Utility- pleasure or satisfaction you get from something Inverse- variables move oppositely Direct- variables move together 4 Resource Categories Land (natural resources) Labor Capital Entrepreneurial Ability (takes initiatives, makes decisions, innovates, and takes risks) Chapter 2 Factors of production = resources Characteristics of Market Economies Private property Freedom of enterprise and choice Self Interest Competition Markets and Prices Market- Institution that brings together buyer and sellers *Money is not a resource. It is a means of exchange. “green" products/companies get their start from government subsidies Demand: buyers inverse relationship btw price and quantity Demand Shifters 1. Change in consumer taste/preferences 2. Change in # of buyers 3. Change in income 1. Normal goods (income ^ demand ^) 2. Inferior goods (income ^ demand goes down) 4. Changes in prices of related goods 3. complements (computers & monitors) as one goes down so does the other 4. Substitutes (chicken & beef) 5. Independent goods 5. Change in consumers’ expectations 6. Future prices 7. Future incomes (consumer confidence) Supply: Sellers direct relationship btw price and quantity Supply Shifters ...
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...into the work environment leading to production losses and loses to close friends. Not only are you losing your health but you can lose a child from premature death. Alcohol abuse can lead to the marginal principle of keeping hospitals staff one hour longer on the weekend due to higher alcohol related problems after midnight. How can we stop alcohol abuse? Solutions to Alcohol Abuse First, make things simpler and focus on the problem, there’s too much alcohol available and it’s being abused. Solution, limit the amount available. This would first start with isolating the variables, going into an alcohol store and measuring the amount ordered then cutting the order in half while multiplying prices by two. Now we have less supply and less demand. This limit will set off a trend around the community and start to lower the abuse of alcohol. Solution two would think...
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...of 3 days. After that assignments will not be accepted. Aim of the subject The aim of this subject is to expose students to some of the key principles of economics theory and their applicability to economic and social problems. At the end of the course, candidates should have attained an understanding of microeconomics and in particular the problems of resource allocation. 1. Introduction Definition of Economics Microeconomics vs. Macroeconomics Positive vs. normative economics Economics as a science Scarcity and wants Opportunity cost. Production Possibility Frontiers Factors of Production 2. Demand, Utility and Supply Demand - price and income Distinction between a movement along and a shift of the demand curve Elasticity of demand Inferior and griffen goods Supply price and cost of production Elasticity of supply Determinants of supply 3. Price Mechanism and Allocation of Resources. Interrelationship between demand and supply Equilibrium price and output Interrelationship between markets Compliments and substitutes Government intervention in the market - Maximum price, minimum price Tax and subsidies 4. Consumer Choice Utility Consumer Equilibrium Marginal utility theory Consumer surplus Indifference Curves 5....
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...goods and services | | | |are calculated during a | | | |certain time. | | |Real GDP |Real GDP is the whole |http://www.diffen.com/difference/Nominal_GDP_vs_Real_GDP | | |economical way to | | | |determine the value of |Nominal GDP vs. Real GDP | | |the economy after it has |...
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