Supply Chain Strategies: Product Life Cycles and Distribution
Supply Chain Strategies and Product Life Cycles
Assessing the Impact of Product Life Cycles on Supply Chain Strategy
To assess the effect of product life cycles on the appropriate supply chain strategy, we need to understand how the demand for a product and the importance of economies of scale change over the life cycle of the product. A typical product life cycle has several stages:
New Product Introduction: The Case of a New Car Design
Consider a new car design. Initially, the car is introduced with
Understanding Economics: Scarcity, Resources, and Market Dynamics
What is Economics About?
Economics is the study of how people use relatively scarce resources to satisfy their unlimited wants. As a social science, economics deals with people’s behavior.
The Fundamental Economic Problem: Scarcity
We don’t have enough resources to produce all the things people would like to have. This leads to scarcity.
- Unlimited wants -> Scarcity <- Limited resources
- Scarcity -> How to produce, what to produce, and for whom to produce
Three Basic Economic Questions
For whom,
Read MoreKey Financial Ratios and Formulas for Businesses
Key Financial Ratios and Formulas
Profit and Loss
- EBIT (Earnings Before Interest and Taxes) = Operating Revenue (Sales) – Operating Expenses
- BAT (Earnings Before Taxes) = EBIT – Interest Expense
- Net Income (BN) = BAT – Taxes
- Reserves = Net Income – Dividends
- Commercial Margin = EBIT / Total Sales
- Market Share = (Company Sales / Industry Sales) x 100
Profitability Ratios
- Profitability = (Profit Obtained / Invested Capital) x 100
- Return on Assets (ROA) = (EBIT / Total Assets) x 100
- Return on Equity (ROE) = (
Understanding Salary: Types, Structure, and Legal Protections
Definition of Salary
Salary is the compensation for services rendered and represents one of the main features of the employment relationship.
Salary Types
- Depending on the type of perception: In-kind, in cash.
- Based on the calculation method used: Per work unit, per unit time, or a combination of both.
Wage Payment
Employers must meet the following criteria:
- Salary must be received on the agreed date and in the agreed place.
- A receipt must be provided to justify the payment of wages.
- Payment of wages must
Strategic Integration & Supplier Relationship Management
Strategic Integration in Purchasing
What is Integration? The process of bringing together different groups, functions, or organizations to work together to achieve organizational goals.
Internal Integration in Purchasing
1- Operations: Material requirements, performance feedback.
2- Quality Assurance: Supplier evaluation, supplier development.
3- Engineering: Technology used.
4- Accounting & Finance: Cost reduction, buying decisions, budget.
5- Legal Environment & Safety: Intellectual property,
Read MoreKey Concepts in Marxist Theory: Capital, Labor, and Value
Capital: Expanding Value
In Marxist theory, capital is an expanding value. Initially, capital takes the form of a sum of money. Its use in the capitalist production process allows the owner to obtain a larger amount than the initial investment. This money is used to purchase machinery and raw materials (constant capital) on one hand, and labor (variable capital) on the other. Once equipped with constant and variable capital, the capitalist can organize the production of a given asset. The value of
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