The national money supply is managed by the Federal Reserve Bank in the US, which can increase it by buying government-backed securities, causing interest rates to fall and making more money available for borrowing. However, an increase in the money supply can also have negative effects on the economy, such as causing the value of […]
Inflation is a sustained increase in prices of goods and services, with a direct relationship to the amount of money in an economy. The money supply and inflation are linked, and changes in the money supply are used to control inflation. Hyperinflation occurs when inflation rises extremely high due to a sudden increase in the […]
Companies must consider factors such as cost, communication, and potential disadvantages before outsourcing their supply chain management. A detailed study should be conducted to evaluate the benefits and select a suitable supplier. Companies should also analyze their current supply chain management strategy and evaluate potential suppliers based on their professionalism, efficiency, and services offered. Hidden […]
Logistics is a specialized part of the broader supply chain process, focusing on transportation and storage of goods. Supply chain management covers procurement, sourcing, manufacturing, warehousing, inventory control, distribution, cost allocation, and supply and demand management. The two areas may overlap, and responsibilities may shift depending on the company’s size and specialization. It’s important to […]
Supply and demand are fundamental concepts in a free market economy. The law of demand states that higher prices lead to lower demand, while the law of supply states that larger quantities are supplied at higher prices. The relationship between supply and demand affects the price of goods and services, and when supply and demand […]
Marginal cost is the additional cost of producing one more unit of a product. In a competitive market, marginal cost and supply are the same, but in a less competitive market, they differ. As production increases, marginal cost initially declines, but eventually rises due to the law of diminishing returns. In a perfectly competitive market, […]
Supply chain execution software accelerates the movement of goods in the supply chain, focusing on logistics and warehouse management. Evaluating software based on tracking time in the warehouse, communication tools, and cost-benefit analysis is essential for choosing the best software for a business. Supply chain execution software works in conjunction with supply chain management software […]
M1 is a measure of the total amount of money in circulation, consisting of paper money, coins, public checking accounts, traveler’s checks, automatic transfer service accounts, and credit union accounts. The US Federal Reserve manipulates the M1 money supply to control inflation, often by decreasing the money supply or raising interest rates, but these actions […]
The price elasticity of supply (SPI) measures how producers respond to changes in prices. A higher SPI indicates greater sensitivity to price changes, while a lower SPI indicates little or no effect on the quantity of goods produced. Manufacturers use SPI to determine how much they can charge for products without negatively impacting sales figures. […]
The law of supply states that as supply for a product increases, so does the price. It can lead to inefficiencies for companies producing multiple products. Supply and demand work together, and the law of supply is often used to stimulate economies during recessions. The law of supply is a basic economic principle which states […]
An agile supply chain is flexible, fast, and accurate, allowing suppliers to respond quickly to changing customer needs. However, companies must balance flexibility with policies and procedures to prevent endangering the overall operation and its relationship with customers. An agile supply chain is a supply chain that is able to respond to changing needs so […]
Supply chain management ensures efficient and cost-effective transformation of raw materials into final products and their delivery to customers. It involves planning, development, production, logistics, and returns, with strategic, tactical, and operational activities. Forecasting delivery models help maintain efficient supply chain management, while the whiplash effect can be mitigated by using Kanban, a demand-driven method. […]
A supply chain consultant can assist businesses with managing inventory and suppliers, reducing costs and improving processes. They have experience in vendor consolidation and can assess inventory costs to find cost-effective solutions. They may have a degree or years of experience in logistics or supply chain management. Inventory is of constant importance to almost every […]
Supply chain issues include using historical trends, outdated information, lack of understanding of supplier capabilities, and lack of communication. Real-time tracking of sales, maintaining supply chain metrics, reviewing supplier capabilities, and personal relationships can help prevent these issues. Supply chain refers to the activity of moving material from its raw state to the final customer. […]
Supply chain professionals need certification, such as Certified Professional Supply Chain or Certified Purchasing Manager, which can be obtained through organizations like APICS, ISM, and Accenture. Each certification has specific requirements and exams. Supply chain professionals include buyers, commodity managers, and purchasing managers. Many supply chain management jobs require supply chain certification as a prerequisite. […]
Supply chain forecasting is used by companies to reorder materials and components, with the goal of meeting customer needs and making efficient use of resources. The process involves identifying all links in the supply chain and ensuring that inventory supply matches manufacturing demand. Forecasts are reviewed regularly to provide insight into future trends. Supply chain […]
Supply chain improvement involves making processes more efficient by reducing costs, improving accuracy and speeding up delivery. This requires a thorough evaluation of the process, labor management, and maintaining inventory levels. Managers must analyze the process to identify areas for improvement, interview efficient workers to determine best practices, and evaluate usage histories to set inventory […]
Narcissistic supply is the attention that people with narcissistic personality disorder crave to feel good about themselves. They seek validation, love, admiration, and even negative attention. The attention received is called their narcissistic supply, and they will go to great lengths to elicit reactions from others. They thrive on attention, whether positive or negative, and […]
Defining project scope is crucial for optimizing supply chain implementation, balancing cost reduction and quality, and measuring progress. Linking implementation to business objectives and using KPIs and ROI can help identify gaps and track costs. Including specialists in decision-making is important for medium to large projects. The most important aspect of optimizing your supply chain […]
Supply chain security involves protecting the transportation of goods globally, with organizations such as the World Customs Organization and US Customs and Border Protection ensuring legal and safe transportation to eliminate theft, terrorism, and piracy. This includes complying with each country’s shipping requirements, screening and inspecting cargo, and providing advance notice of cargo contents. The […]
