Understanding Operations Management and Supply Chain Processes
Operations Management and the Supply Chain
Operations management involves managing the transformation process (production function) that converts inputs into outputs, typically goods and services. Meeting customer requirements and understanding the “voice of the customer” are crucial. Decision-making plays a vital role, leading to the division of operations into key decision areas: process, quality, capacity, and inventory.
Three Dimensions of Operations Management
Operations management can be understood
Read MoreAggregate Demand and Fiscal Policy in Closed and Open Economies
Distribution of Aggregate Demand in a Closed Economy (Long Term)
Exercise 1
Consider a closed economy operating at full employment, characterized by the following system of equations:
Based on this information:
- Find the total saving function of the economy. Calculate the partial derivative of this function with respect to the interest rate and provide an intuition for the results.
- Find the effect on the interest rate of increases in public spending. Express your result in terms of model parameters.
- Explain
Balance of Payments and Exchange Rates: A Comprehensive Analysis
Module 6: The Balance of Payments (Chapter 10)
Deficit in Current Account Balance
The main components of the Current Account (CA) are the merchandise balance, service balance, income balance, and unilateral transfers balance. The deficit in the CA balance was primarily due to the merchandise balance (-US$820.8 billion). The unilateral transfer balance was also in deficit, albeit at a lower level (-US$119.7 billion).
Let’s break down the calculation:
- CA balance = 673.2
- Net Capital and Financial Account
Understanding Fiscal Policy: Taxes, Spending, and Economic Impact
Fiscal Policy and its Instruments
Employment and Training Programs
These programs aim to recruit and train workers for short periods, facilitating their integration into the workforce. Transfer programs, such as unemployment insurance, pensions, and enterprise subsidies, provide a minimum standard of living and encourage companies to hire individuals with specific characteristics (e.g., those over 45 years old).
Modifying Tax Rates
Adjusting tax percentages can influence consumer spending and economic
Read MoreKey Changes and Impacts of IFRS Adoption in Chile
1. Functional Currency
The introduction of the functional currency concept under IFRS requires companies to record transactions and maintain accounts in the currency that predominantly influences their operations. For instance, the copper mining industry is closely tied to the US dollar, while local retailers primarily operate in Chilean pesos.
Many Chilean companies operating in dollarized sectors have historically maintained accounts in US dollars. Converting these accounts to Chilean pesos under
Read MoreUnderstanding Investment Strategies and Financial Concepts
Profitability and Investment Decisions
Profitability is the relationship between profit generated by business activity and the investment made (company assets). Investments should be projected into the future.
Criteria for Investment Decisions
The aim is to optimize the use of economic resources. Criteria are parameters or guidelines that play an important role in decision-making. These include:
- Optimizing the use of economic resources.
- Maximizing profit in present value.
- Choosing financing options that