Inventory management Essay Example for Free

Inventory management Essay Part One: Inventory Management and its role within the Supply Chain Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, raw materials, and other features of companies in order to reduce storage costs while providing a high level of service and smooth operations. Inventory management in logistics is the optimization of operations directly related to the processing and registration of goods, and to the coordination with the procurement and sales service, it is the calculation of the optimal number of stores and their locations. Effective inventory management allows an organization to meet or exceed customers expectations. Several technical applications of inventory management models are incorporated by the inventory management so as to achieve efficiency. Critical role of the inventory management is therefore played by the concepts such as safety stock, cost of goods, economic ordering quantity, customer managed inventory, a vendor managed inventory, and the inventory turnover. The key principles of inventory management remain the same across all the industries; however, some critical areas of emphasizing these principles may vary from one sector of business to another. Inventory management in the supply chain is a complex of supply chain optimization techniques. This is a key element in the supply chain management. Experts emphasize companies’ attention on what constantly improving efficiency in the supply chain has become a market requirement and prerequisite for competitiveness. Global trends for the largest industrial and commercial companies integration lead to the formation of the global system with integrated supply chain, procurement, etc. That is why inventory management in the supply chain cannot be separated from the overall system, a single ‘logistics organism of the company. Information technology can help to integrate the management of inventory in the supply chain. The purpose of the usage of information technology to manage inventory in the supply chain is to increase the efficiency of all processes. (Supply chain management  consulting 2002) The important aspect of the inventory management lies on the correct application of the right inventory management tools. Understanding of all the details of inventory management leads to the effective control of inventory. When lean practices are applied to all aspects of the inventory management cycle, this means that business can effectively reduce the investment in shipping costs, plant rentals, reverse logistics, and standing inventory while improving or maintaining customer service levels in its overall performance. (Purchasing and Procurement Center, 2012). Therefore, inventory management is important and need to be effected at all levels of business operations to keep the inventory levels stable and to avoid costly errors and inconveniences (Winsner, 2011). Part Two: 1. It is often difficult to find reliable costs of stock. With shortages this seems almost impossible. Discuss how we can find cost of loss of good well or reduced future sales, and to what extent we can have reliable estimates for such costs. Often, it is difficult to find reliable cost of stock because market factors such as shortages come into place. The most important element, which must come into place pertaining to this situation, is intelligence pricing. Intelligent pricing is an element, which will ensure a successful business venture, and without this business will not find reliable costs of stock. Before launching a new business, it is always important for entrepreneurs to have adequate knowledge about the various pricing strategies and components available. Market place factors ought to be weighted by the business owners before prices of goods and services are set. Therefore, factors such as the market, competition and the distribution costs need to be put in place so as to arrive at reliable cost of stock. In any analysis of the inventory management system several factors should be considered: the demand forecast and delivery time, as well as the costs associated with the system operation. The cost parameters must be considered as well. Firstly, the costs of holding reserves, which include the cost of dead capital in stocks,  keeping costs and other costs associated with physical presence of goods in a warehouse. Secondly, order and reorder costs which includes the cost of placing an order, the cost of record-keeping, as well as the cost of set-closing operation if the output is considered in batches. Another important indicator are the costs due to lack of or inability to meet demand(shortage costs), the costs due to changing nature of the products, production costs , as well as losses due to obsolescence or damage. Lets consider shortage costs in details. These are the costs associated with the occurrence of shortage and can show up in those cases when the product is required, but cannot be supplied because it is out of stock. The impact of shortage is wider than lost profit, as it involves the loss of image, goodwill and potential losses from the reduction in the number of sales in the future. These costs may also include such payments for actions ,aimed at reducing the deficit, as freight forwarding, sending a rush order, payment for special types of products, the usage of more expensive suppliers. Most companies believe that shortage is always expensive, so they try avoid it. In other words, they are willing to pay relatively low costs for stock keeping in order to avoid relatively high costs associated with shortage. These costs represent a penalty to be paid by the owner of an enterprise in case when the demand exceeds the supply. It is very difficult to ensure that demand will always be satisfied and, in addition, it is likely for a firm that such guarantees can be joint with extremely high costs. The shortage can be offset by emergency delivery, in this case, penalty is the difference between ordinary value of product and the cost of emergency delivery. Sometimes shortage is offset by back-ordering, i.e. goods are delivered to the customer as soon as they come in stock. In this case, penalty is the loss of goodwill, this can affect customer’s behavior in the future. In extreme case this shortage can lead to the loss of customer, then the penalty will include not only lost sales cost, but also losses of many customers in the future. Identifying shortage costs is exceptionally difficult task, and it does not arise barely because the administration of an enterprise is not interested in reduction of these costs. Direct shortage cost figures were obtained only in a few cases, and only with limited accuracy. One of the most important  elements of the intangible assets of the company is its goodwill. At the same time it cannot be said that the formation of goodwill and maintaining it at a high level is something new and unique for today’s businesses. Goodwill represents the kind of good name of a company and is accounted in its intangible assets, along with copyrights, know-how and trademarks. Goodwill may be either positive or negative. The positive goodwill of a company may help: To add psychological value for products and services; To attract new customers in case they have a choice between functionally similar products or services; to bring a company more qualified employees and increase job satisfaction of an existing staff; To increase the effectiveness of advertising and sales, to support distributors, advertising agencies, suppliers and business partners; To raise funds on the stock market and survive in the event of a crisis. Any competitive producer knows that in order to gain the consumer recognition and profit, it is needed to invest primarily in itself. After all, a good name works better than any advertising. It is impossible to generate a goodwill from scratch. The company should enjoy really significant achievements and benefits which lay the foundation for goodwill. The process of generating a goodwill takes a long time and considerable amount of money. This is a long-run, very complicated process that cannot be insured against dangers, losses and risks. (Lean manufacturing and and operations management, 2012) One of the most important trends in recent years has been towards e-commerce. How does this affect inventory management? Electronic Commerce is a type of trading, which applies the use of modern technologies such as mobile commerce, supply chain management, electronic funds transfer, internet marketing, electronic data interchange, online transaction processing, and inventory management systems among others. (Practical Ecommerce, 2010). Through the application of computerized technology in inventory management, business organizations are able to have a complete inventory description in real-time basis. Investing in e-commerce technology allows business owners to have a strong inventory management backed, which includes bar codes that allow streamlining of the inventory processes. A streamlined process leads to accurate planning due to improved forecasting, product turnover leading  to increased profits and better customer services. E- Commerce inventory management system also means that the business owner can easily integrate with customers through various technologies such the internet and the smart phones. Through this, customers are able to access the available products and their prices and business owners will be able to place their products in the market with ease. Measuring of the inventory turns is also achieved by e-commerce with the use of the appropriate software and proper techniques. Therefore, more frequent inventory turns are achievable, and this boosts the profits. E-commerce is also applied in managing vendors, and maintaining good ties with vendors enables business owners to negotiate favorable terms and conditions for business. Elimination of obsolete inventory in a timely manner is achieved through e-commerce as the seller can easily identify such inventory through real-time observation of the market changes. Inventory items are also reduced through e-commerce since business owners are able to keep just enough items because they know their market capabilities in real-time without false anticipation. Therefore, the overall impact of e-commerce in inventory management is that accurate information is attainable and efficient, and effective operations can be achieved by business owners because the amount of warehousing space required is reduced and constructively used with minimal wastage associated with unpredictable approximations and anticipations (Coyle et al, 2008). Now it is quite obvious that the Internet is changing the image of the world economy. The Internet has the greatest impact on e-commerce between businesses (B2B). Companies form strategic alliances and build relationships with suppliers. The rate of development and growth of e-commerce, as well as promising prospects for increased supply chain efficiencies all these facts have a significant impact on the companies’ activities engaged in B2B commerce. Such businesses are forced to reduce operating and handling costs and at the same time to accelerate the supply chain activity. Those B2B companies that do business effectively have achieved a leading market positions in their industries. The supplying funds savings can be directed at the enhancement of IT infrastructure operations, and ultimately at the improvement of customer service B2B. The differences between e-commerce B2B and B2C are more significant than between the retail and wholesale trade. From a business perspective, this means savings within the organization, a willingness to enter into profitable alliances with suppliers, a reduction of operative costs in the delivery of goods and services, the precise regulation of the complex coordination within the union in respect of procurement, timely delivery and electronic payments. (Network solutions, 2012). Conclusion A company may command a hefty price on its product or service, but it is amazing how such companies may sometimes observe to be making minimal profit, making no profit or even running at a loss. This means that the cost of the product is different. Perhaps, to arrive at a reliable cost of stock means that business owners need to develop appropriate pricing strategy and to implement it so as it will result in generation of profits. Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. Efficient technology such as the application of e-commerce leads to effective inventory management. This is likely to lead to cost efficiency and effectiveness and therefore generate profitability. Main advantages of e-commerce for companies are: global scale, reduction of inventoty costs, supply chain development, fast time-to-market etc. For customers they are: large product variety, personalization, low prices, etc. The high emphasis should be placed on costs parameters when analyzing inventory management. The impact of shortage cost is wider than the lost profit, as it involves the loss of image, goodwill and potential losses from the reduction in the number of sales in the future. Identifying shortage costs is exceptionally difficult task, and it does not arise barely because the management of an enterprise is not interested in lowering these costs. Sometimes the shortage is offset by back-ordering. Shortage costs may lead to the loss of goodwill, this can affect the customer’s behavior in the future. Under present-day conditions, goodwill may change in the shortest possible time. A number of different factors can contribute to this, and therefore the organizations security policy should include measures to manage reputational risk. Is is evident that the goodwill in the current market environment is the most important competitive advantage for any company.

Comparing the Character of Creon in Oedipus and Antigone :: Oedipus Antigone

Comparing the Character of Creon in Oedipus and Antigone Creon does not learn a lesson from Oedipus' accusatory behavior. Instead he adapts this bad personality trait. Throughout Antigone, he accuses everyone who tries to give him advice of betraying him. Whereas, in Oedipus, he is falsely accused by Oedipus of trying to take over the throne. This paper will compare and contrast his behavior and evaluate if he learned anything from one play to the next. Creon was seen in a different context in Oedipus compared to his character in Antigone. In Oedipus, he wanted nothing more than to help Oedipus rid the city of whatever plague the gods were hurling at them. Creon goes to Apollo's shrine to find out why the gods are angry and then brings Tiresias to help Creon see what has the gods angry. Oedipus does not want to believe the truths Tiresias is telling him and falsely accuses Creon of plotting against him to become king of Thebes. Creon is so hurt by this that he tells the chorus, "This accusation against me by our ruler Oedipus, It's outrageous. (514)" By the end of the play, Creon tells Oedipus that "I'm always as good as my word; I don't speak before I think(1520)." In Antigone, Creon becomes king of Thebes after Polynices and Eteocles commit fratricide in battle. Antigone commits her ‘crime of reverence(74)' by burying Polynices after a direct order from Creon dictating that everyone leave him on the ground, unburied. Creon first accuses the council of elders of being stupid and old (281) when they suggest that the gods were behind Polynices' burial. After this, he goes on a tirade against men who supposedly were not happy with his leadership and therefore paid off the watchmen to bury the body. Creon blames the watchman of burying the body for money and the watchman tells him that, "It's terrible when false judgment guides the judge (323)." After the Watchman comes back and tells Creon that they found Antigone burying Polynices' body a second time, Creon accuses Antigone of breaking the law. Antigone does not feel she has broken the law because she is obeying laws passed down from the gods and not Creon's man-made law. Creon is so angry that someone would disobey his edict that he orders Antigone to be buried alive and that Ismene be put to death also. Ismene had nothing to do with the crime but Creon blames her regardlessly.

Political Institutions

Political institutions have been around since nearly all human societies were organized tribally. Over time they have developed into various organizational features and eventually taken the shape they do today. They have proven to be fundamental in virtually all societies worldwide and by being so omnipresent we often take these institutions for granted and do not realize how vital they are for our society. Moreover, because they are so important and play such a big part in our society, there is a major purpose to compare them between time and place.Therefore, this paper will first elaborate on explanations for political institutions and through that process come up with a working definition. Furthermore, it will explain why political institutions play such a major role in our society, and lastly it will argue for why we should compare these institutions. There are countless definitions of political institutions making the term somewhat vague (Klingemann & Goodin, 1996; Peters & Pier re, 1998).It refers not only to formal political organizations such as political parties and parliament, but also to informal constraints such as customs, ideals, guidelines and actions (Peters & Pierre, 1998; North 1990). In addition, Wiens (2012) emphasizes that these formal and informal rules establish and stabilize roles. Moreover, although there is no consensus amongst theorists of what makes an institution political (Garret & Lange, 1995), Max Weber (cited in Gerth & Mills, 1946) and Moe (2005) argue that an institution is political if it influences the distribution of power.As a result, for the purpose of this essay I will combine these scholars’ explanations to create a working definition. Political institutions are sets of formal and informal rules that influence the distribution of power, create roles and by combinations of standards, ethics, instructions and procedures stabilize interaction for occupants of those roles (Wiens, 2012; Peters & Pierre, 1998; North, 19 90; Gerth & Mills, 1946; Hall, 1986). Thus for being so ubiquitous, political institutions have profound ramifications for politics and for society at large.Political institutions have been developed by human beings throughout history to generate order and diminish insecurity (North, 1991) One of the main explanations to why they create order is because by influencing the way entities interact in politics, these political institutions significantly affect the potentials for individuals and groups to resolve collective problems and identify shared interest (Weir, 1992; Moe, 2005; Johnson, 2001). One apparent example is how parties create political alliances and in some cases governmental coalitions.Therefore, political institutions are vital as they stabilize and structure interactions (Hall 1986; Przeworski, 2004), and by being forces of stability also offer predictability (Hague & Harrop, 2010). Furthermore, Moe (2005) claims that political institutions essentially exist and are si gnificant because they make people better off. Whereas North (1981; 1990) and Minier (2001) do not fully share this opinion and rather contend that in order to benefit everyone in society and also for the economy to grow rulers have to adopt the correct political institutions.Thus, in order to find what the â€Å"correct† political institutions might be, there is an intrinsic motivation to compare these between time and place. To be able to comprehend the bigger picture of political power it is crucial to understand how political institutions work and in order to develop deeper knowledge about those it is vital to compare them (Beck et al, 2001). Moreover, without comparing there is not much to acquire from a mere description (Pennings, Keman & Kleinnijenhuis, 2005).In other words, returning back to North’s argument, one can hardly know which political institutions that are â€Å"correct† in bringing benefits to everyone by merely observing just one institution. Therefore, a vital reason to compare is to look for useful ideas and to see which political institutions might be good and bad at achieving specific political goals and see if these various institutions can survive in different political settings (Przeworski, 2004; Nikandrov, 1989).In addition, by seeing similarity in difference and difference in similarity and linking ideas and theory to evidence we can gain greater insight and be more aware of alternatives (Friedman, 2011). However, some scholars point to the dangers of comparison (see Faure, 1994; Radhakrishnan, 2009) and it is important to acknowledge those risks. Nevertheless, as Friedman (2011) explains: â€Å"For all the problems and dangers of comparison, in the end it is worse not to compare than to compare† (p. 756).To summarize, first of all political institutions are sets of formal and informal rules that have since the early ages of man stabilized and shaped interactions and outcomes by establishing roles and af fecting power relations. Secondly, political institutions are important because they structure individuals and groups to overcome self-interest and rather cooperate for mutual gain. Furthermore, they create order and by offering predictability they reduce insecurity. In addition, arguably, political institutions can benefit everyone in the society and support in economic growth.Thirdly, we should compare political institutions to learn about valuable ideas, be mindful about possibilities and to see how similar and different institutions functions in various contexts. Lastly, we should compare to get a wider and enhanced understanding of how political institutions function and thus also enables us to further comprehend the mechanics of political power. REFERENCE LIST: Beck, T. , Clarke, G. , Groff, A. , Keefer, P. , & Walsh, P. (2001). New tools in comparative political economy: The database of political institutions. World Bank Economic Review, 15(1), 165-176. Faure, A.M. (1994). So me methodological problems in comparative politics. Journal of Theoretical Politics, 6(3), 307-322. Friedman, S. S. (2011). Why not compare? Publications of the Modern Language Association of America, 126(3), 753-762. Garret, G. , & Lange, P. (1995). Internationalization, institutions, and political change. International Organization, 49(4), 627-655. Gerth, H. H. , & Mills. C. W. (1946). From Max Weber: Essays in sociology. New York, United States: Oxford University Press. Hague, R. , & Harrop, M. (2010). Comparative government and politics: An introduction (8th ed).New York, United States: Palgrave Macmillan. Hall, P. A. (1986). Governing the economy: The politics of state intervention in Britain and France. Cambridge, UK: Polity Press. Klingemann, H. , & Goodin, R. E. (1996). A new handbook of political science. Oxford, UK: Oxford University Press. Johnson, J. (2001). Path contingency in postcommunist transformations. Comparative Politics 33(3) 253-274. Minier, J. (2001). Politica l institutions and economic growth. Philosophy & Technology, 13(4), 85-93. Moe, T. M. (2005). Power and political institutions. Perspectives on Politics, 3(2), 15-233. Nikandrov, N. D. (1989). Cross-national attraction in education. Comparative Education, 25(3), 275-282. North, D. C. (1981). Structure and change in economic history. New York, United States: Aldine-Atherton. North, D. C. (1990). Institutions, institutional change, and economic performance. New York, United States: Cambridge University Press. North, D. C. (1991). Institutions. The Journal of Economic Perspectives, 5(1), 97-112. Radhakrishnan, R. (2009) Why compare? New Literary History, 40(3), 453-471. Pennings, P. , Kleman H. , & Kleinnijenhuis, J. (2005).Doing research in political science. London, UK: Sage Publications Ltd. Peters, B. G. , & Pierre, J. (1998). Institutions and time: Problems of conceptualization and explanation. Journal of Public Administration Research and Theory, 8(4), 565-583. Przeworski, A. (20 04). Institutions matter? Government and Opposition, 39(4), 527-540. Weir, M. (1992). Politics and jobs: The boundaries of employment policy in the United States. Princeton, United States: Princeton University Press. Wiens, D. (2012). Prescribing institutions without ideal theory. Journal of Political Philosophy, 20(1), 45-70.

Basic Parameters That Affect The Performance - 1243 Words

7. Basic Parameters That Affect The Performance in RTOS 7.1 Multi-tasking and preemptable: In RTOS the system have to be multitasking and preemptable because those two features make the RTOS Scheduler end any lower priority task to execute the higher ones or to release some resources for other tasks that urgently need those resources. Also the system have to handle different level of priorities of interrupts.(Yerraballi,R. 2000) 7.2 Dynamic deadline identification: In some scheduling algorithms such as (EDF)the deadline is converted to priority levels. Then we can control priorities by controlling the deadlines.†Although such an approach is error prone, nonetheless it is employed for lack of a better solution†(Buttazzo, 2005). 7.3 Predictable synchronization: The threads of the system need to communication and to be synchronized in a timely efficient and predictable way. 7.4 Sufficient Priority Levels: In the scheduling algorithms based on priorities. There must be enough levels of priorities. Priority inversion occur when a low level priority hold the resource that the the high level priority is waiting for or blocked due to this resource, and the lower priority is delayed because low priority task. â€Å"Two workarounds in dealing with priority inversion, namely priority inheritance and priority ceiling protocols (PCP), need sufficient priority levels.† 7.5 Predefined latencies: The timing of the systems must be predictable and this is done by defining task switchingShow MoreRelatedTaguchis Design Of Experiments Analysis792 Words   |  4 Pagesmethodologies have been effectively utilized to conduct the experiments in a scientific manner, one is Taguchi’s Design of Experiments (DOE) and other method of design of experiments were based on randomly selected combination of cutting process parameters is shown below figure. 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