Another global player are the OPEC nations. These nations have major reserves of oil, therefore can set the price of oil in its member countries. This has led to prices of oil changing, having periods of very high prices and periods of very low prices. For example, Saudi Arabia has 22% of worldwide oil reserves, meaning they can sell their oil globally to countries with smaller oil reserves meaning they can make a large profit. Nationally, different Governments are involved in the global supply of energy.
Executive summary To maintain prominent competence in heavy truck manufacturing industry, our company, PACCAR, needs to upgrade major lines to the most efficient and advanced technologies. There are two options to be considered: purchasing technologies from outside providers or developing the technologies by the company itself. As a financial analyst, I evaluate those two options by calculating and analyzing MIRR, NPV, IRR, payback period and PI for each alternative. My analysis indicates that developing the technologies in house is more optimal as it outperforms the other alternative on all measurements. And among all measurements, MIRR is the best one in this case.
Target’s capability to process products depends in how effective the company receives and distributes. Distribution centers are located on both the West and East side of the country and transports goods to all Target locations to help them uphold the competitive advantage which allows them the ability to control product costs (Misra & Choudhary, 2010). In an ideal world, having an effective processing system and a reliable transportation network running cohesively within the supply chain in order to improve reaction times to meet customer demands will allow a company such as Target to better control its distribution and shipment process. Target has realized that being flexible has been an advantage since the fuel price has risen and it is not as easy to have goods transported to the distribution
Supply and Demand Simulation Amanda Huenefeld ECO/365 Sadu Shetty January, 14, 2013 Introduction Supply and demand are the two influences that govern pricing in the larger picture of a viable economic market. The two factors are like two forces. Equally the conclusive levels of supply and demand, and the comparative levels of the two in contrast to one another, are significant. The standard of supply and demand is that if one or both varies, there will be a transient difference in the amount of product manufacturers are equipped to sell and the quantity that consumers are willing to buy. This difference will cause the market price to increase or decrease when necessary until the quantities are the same.
Monopoly output: MR=400-4q MC=40 MR=MC 400 – 4q = 40 then q=90 unit The reason that producing on half the monopoly output (90*1.5 = 135) a Nash equilibrium outcome is that it will exceed the market demand of Nash equilibrium ($160). 4. Problem #8, p. 221-222 in text. (HINT: First calculate the profits of a market with two firms, and then continue this process for 3, 4, and 5 firms.) a.
Question : (TCO 8) When an industry has excess capacity, market prices may drop well below their historical average. If this drop is temporary, it is called 9. Question : (TCO 8) An advantage of using budgeted costs for transfer pricing among divisions is that 10. Question
Both customer categories are a source of revenue and must be kept satisfied to stay in top ranks, and by delivering on time and having competitive prices they shall be kept satisfied. Orders placed by any of the two must be managed properly to ensure that shipments are received on time and safely. Orders placed by any of these customers varies depending on the way the company is run, some like to have extra supply at hand because they might use a certain product on the daily others might just order enough to have at hand due to lack of warehouse space, but they might be willing to pay higher prices because of the urgency of the delivery. The database stored all this information and becomes very helpful in that the Hoffman company can have idea what these customers are willing pay for freight charges. Orders that do not fluctuate very often
Model Components and Profit Generation. * Rapid Inventory Turnover-when combined with the operating efficiencies achieved by volume purchasing, efficient distribution, and reduced handling of facilities enabled Costco to operate profitably at significantly lower gross margins than traditional wholesalers, mass merchandisers, super markets, and super centers. * High Sales Volume-Allowed Costco to sell and receive cash for inventory before it had to pay many of its merchandise vendors, even when vendor payments were made in time to take advantage of early payment discounts. This allowed Costco to finance a big percentage of its merchandise inventory through the payment terms provided by vendors rather than by having to maintain a sizeable working capital to facilitate timely payment of suppliers. 2.
2. Interest rates fall, which stimulates the demand for investment goods. 3. The currency depreciates, which stimulates the demand for net exports. (p.748).
Explain how an increase in federal budget deficit due to recession can stabilize the economy. A deficit means that the government spends more than it receives in tax revenues in a given year (O’Sullivan, Sheffrin, & Perez 2010, p. 374). The total deficit is spending, plus all the interest payments on top of the original debt, minus the total tax revenue (http://www.blurtit.com). There are three factors, known as automatic stabilizers, that affect and stabilize the economy, they are: 1) government purchases of goods and services, such as public safety, government transfer of payments, and unemployment insurance, 2) Medicaid or Medicare etc.,and 3) the collection of taxes. If the government cut taxes or increases transfer payments such as unemployment insurance and food stamps this helps to offset the decrease in household income.