Therefore since many of these factors are intangible in nature it is hard to quantify and contrast alternate supply chain possibilities. For example, if a low cost leader supplier isn't able to meet deadlines consistently then the costs associated with the disruption may greatly exceed any benefits gained from a lower unit price. This type of consideration makes comparative models very difficult to develop.
6. Compare and contrast the contribution approach with the net profit approach in cost/revenue analysis.
The contribution approach separates costs into fixed and variable costs and is often used in variable pricing situations to analyze the benefits of differentiated pricing models. For example, if a firm produces a product for ten dollars and produces this product at ninety percent capacity and has an opportunity to use the excess capacity to produce another good that sells for five dollars per unit. If a manager were to strictly rely on the net profit approach then selling a lower priced good may not appear to be that attractive. However, since the contribution approach separates the fixed and variable costs, then helps to illustrate the benefits achieved by these measures by producing the lower priced good. The disaggregated unit cost may appear higher than the contribution approach utilization of variable cost. This could potentially result in total losses to revenue by not considering the effects of the cost savings incurred by spreading out the fixed costs by producing more units. Furthermore this approach is often used as a metric to generate custom pricing estimates on custom production items.
8. Suppose you have been asked by a firm to assess the impact on a return on assets of outsourcing transportation. Currently the firm uses a private truck fleet and is considering a switch to a for-hire transportation company. Which aspects of the strategic profit model would be affected?
The impact of outsourcing transportation would most likely impact the return on assets in a positive manner since the total amount invested would be reduced through liquidation of the assets need to perform the deliveries. Concentrating on the business' core competencies, the areas that add the most value to...
Supply Chain Logistics Systems Of the many functional areas of an enterprise, supply chain logistics systems are among the most valuable to any business in differentiating their unique competitive advantages in turbulent, uncertain markets. From controlling the costs of production and service to delighting customers by having products in stock when they want to buy them, supply chain logistics systems often are the strongest differentiating element organizations in commodity-based industries have
Global Supply Chain Analysis of Amazon.com's Global Supply Chain Date you turn this paper in Analysis of Amazon.com's Global Supply Chain Amazon's supply chain management systems and processes are predicated on the synchronization of a diverse base of global suppliers, partners, logistics services companies and warehouse management systems and technologies. All of these elements of their supply chain strategy and infrastructure are orchestrated around delivering an exceptional customer experience and streamlining the ordering
Global Supply Chain Barngetuny, D. C., & Kimutai, G. (2015). Effects of e-procurement on supply chain management performance in Elgeyo-Marakwet County. International Academic Journal of Procurement and Supply Chain Management, 1(5), 99-120. The article investigates E-Procurement performance on supply chain management in the county of Elgeyo Marakwet. The research objectives were to establish the impact of e-tendering on the management of supply chain, establish the impact of e-invoicing on supply chain management,
Introduction The Department of Homeland Security (2007) proclaims itself the “the lead department” for designing and implementing a strategy for global supply chain security (i). The DHS has undertaken this responsibility in large part because of the role it plays in detecting and responding to incidents, and making sure that trade can resume as smoothly as possible after an incident has occurred. In its Strategy to Enhance International Supply Chain Security,
IKEA Company has a global supply chain with sales in over 250 own stores in around 24 countries across the globe and 32 outside franchises in 16 countries. The company's stores are supplied directly from the 1350 suppliers or through 31 distribution centers in over 50 countries. As a result, the firm's supply chain has an international spread comprising of sales and purchases across major regions in the world. Since
The Role and Impact of Information Systems in Supply Chain and Logistics Management: A Global PerspectiveAbstractThe rapid pace of technological advancements has brought about a paradigm shift in the supply chain and logistics sector. Information systems are becoming indispensable tools that facilitate global transportation, logistical operations, and supply chain management. This paper aims to explore the role of information systems in streamlining supply chain and logistics management, with a particular
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now