By Brandon Lennox, Timothy Prichard, Roger Allen.

Slides:

Advertisements

Similar presentations

Acquire foundational knowledge of marketing-information management to understand its nature and scope Marketing Indicator 1.05.

Advertisements

3.02Interpret the theory of supply and demand. Supply vs. Demand Supply- the amount Producers are willing and able to produce and sell. Supply- the amount.

What other terms can you think of when talking about Procurement and Inventory Management?

Global Supply Chain Procurement and Distribution

Change in S vs. Change in Qs Unit Three, Lesson Two Economics.

3.02Interpret the theory of supply and demand. Supply vs. Demand Supply- the amount Producers are willing and able to produce and sell Supply- the amount.

Supply Chain Management

Physical Distribution Marketing Co-Op. What is Physical Distribution? The key link between a business and its customers – also known as logistics.

Preview: Environmental Analysis 4 PEST Analysis 4 Industry & Market 4 Porter’s Five Forces Model 4 Generic Strategies 4 Environmental Analysis Overview.

PRICING PROGRAMS. Marketing Strategies and Pricing Objectives b Primary Demand Strategies increase number of usersincrease number of users increase rate.

Supply Chain Operations: Planning and Sourcing

More on Vertical Relationships. The Make or Buy Decision Firms should internalize those activities that can be conducted within the firm more profitably.

Chapter 9 – Profit maximization

Key Concepts of Supply Chain Management

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER 8 SUPPLY CHAIN MANAGEMENT.

Chapter 13 Physical Distribution and Documentation.

Channels of Distribution Chapters 15, 16 Any series of firms that participate in the flow of goods from producer to final user.  Short: producer → consumer.

THE BUSINESS OF FASHION 3.02 Explain the economics of fashion.

Demand and Supply. Demand  Consumers influence the price of goods in a market economy.  Demand : the amount of a good or service that consumers are.

Wholesaling and Physical Distribution Chapter 16 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Business Plug-in B8 SUPPLY CHAIN MANAGEMENT.

Sydney Hall.  A monopoly occurs when a market is dominated by a single seller. They form when barriers prevent other firms form entering a market that.

Global Research and Consulting Econometric Advisors CBRE Econometric Advisors Client Conference 2012 October 2, 2012 Session III | Technology and the Future.

Agricultural Marketing

TRANSPORTATION MANAGEMENT

Physical Distribution

Unit 2: Microeconomics: Understanding the Canadian Market Economy

1 utdallas.edu/~metin Managing Transportation in a Supply Chain Chapter 13.

Slides 6 Distribution Strategies

Logistics and Distribution AG BM 460. Mini Case Mushroom compost Farm byproduct Very heavy Low value Costs money for disposal Can be used by green industry.

Input Management AG BM 460. Supply Chain Management Implies working with customers and suppliers to get everything to work as well as possible with efficiency,

+ The Free Enterprise System Chapter #5. + Chapter Objectives Explain the characteristics of a free enterprise system Distinguish between price and non-price.

Revision: Business Growth

Mr. Weiss Unit 3 Vocabulary Words 1. law of demand; 2. law of diminishing marginal utility; 3. price elasticity of demand; 4. equilibrium price; _____the.

Types of Economic Competition. Determining the Type of Economic Competition The number of firms competing in the market The amount of similarity between.

Logistics Management CHAPTER ELEVEN McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

 Traditional concept of warehouse as store or go down  Development of modern concept of warehouse as facility Traditionally, consumer maintained his.

SUPPLY CHAIN RELATIONSHIP l The objective : control by vertically integrated firm. l To control all aspects of inventory moving from a network of manufacturing,

1 1 Unit 7 - Chapter 22 Physical Distribution. 2 »The process of transporting, storing, and handling goods to make them available to customers »Third.

Industrialization Big Business. Learning Targets:  Know how fixed costs and operating costs effect economies of scale and how big businesses manipulated.

Supply & Demand: Market Competition. Demand: the desire, ability, and willingness to buy a product.

Civics Core 100, Goal 8 The learner will analyze features of the economic system of the United States.

Introduction Transportation is necessary to:

2. The organization of the shipping market Defining the maritime market Defining demand / customers Defining the suppliers Shipping= Παίκτες/agents:

“Supply, Demand, and Market Equilibrium”. Demand Review 1. What is Demand? 2. Give an example of substitute goods 3. Give an example of complementary.

Economic Order Strategy in Dining Service Distribution Center Qian Zhang Qiuyue Zhao.

Purchase Orders, Invoices, and Shipping Chapter 16 Sec 3.

PHYSICAL DISTRIBUTION CHAPTER 25. Nature & Scope  Physical Distribution  Process of transporting, storing, & handling goods to make them available to.

Target Cost –Price Determined by Market Target Selling Price- Cost Plus Pricing Time and Material Pricing Transfer Pricing *Negotiated *Cost-based.

Physical Distribution and Documentation

Logistics Management CHAPTER ELEVEN McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Marketing In Today’s World Freshman Seminar - Introduction to Business Dr. Hays Freshman Seminar - Introduction to Business Dr. Hays.

Big Business 5.3. The Rise of Big Business  By 1900 Big Business started to dominate  Factories  Warehouses  Distribution Facilities  By 1900 Big.

Chapter 22 Physical Distribution

Demand ES: Make decisions after reflection and review.

1 1 Wrap Up John H. Vande Vate Spring, Review of Topics Variability Basics –The big idea Forecasting –The 5 Laws of Forecasting –Actual/Forecast.

Demand. A market is any place people come to buy and sell goods and services. A market has two sides: a buying (demand) side and a selling (supply) side.

Budgets and Businesses Workshop. Budget: is a plan that shows income, spending and saving. Income: Spending: Saving:

Marketing I Curriculum Guide. Pricing Standard 4.

1. McDonald’s and P&G selling in different nations Selling different products –Lose production economies of scale Spreading fixed costs Purchasing economies.

Job Description for Freight Brokers and Freight Agents LogisticsAcademy.org is an online Freight Broker Training School that helps people start their own.

Circular Flow of Economic Activity and What is Demand?

Marketing Channels Delivering Customer Value

Chapter 5: Supply Section 1: What is Supply?.

Vertical and Horizontal Integration

Kelley Fall 2001 Marketing Management

Marketing Channels Delivering Customer Value

Marketing Channels Delivering Customer Value

Presentation transcript:

By Brandon Lennox, Timothy Prichard, Roger Allen

 Market Structure  Demand  Elasticity  Economies of Scale and Scope  News Vendor Problem  Conclusion

 Oligopoly  United Postal Service Vs. FedEx  Vertical Boundaries  Suppliers

 High demand  Seasonality  Recession

 Transportation relies heavily on economies of scale and scope  This comes from shipping many different products from many different customers  This gives the ability to spread out overhead costs over a vast amount of items

 How are shipping companies trying to use economies of scale and scope.  Building massive ships to carry more and more containers.  Mergers are also being used in shipping to support economies of scale.

 International shipping company that uses trucks, planes, and distribution centers.  They take individuals packages and ship them all over the world.  This can not be done with just a few packages, but must be done with thousands of them.

 Exists when inventory or capacity expires  Freight Industry – Unsold Capacity ◦ Schedules ◦ Deadlines ◦ Newsvendor problem for transported goods

 Different common types of contracts ◦ Customer pays flat rate for truck  Buys all capacity for that truck  Newsvendor problem passed on to customer ◦ Truck waits till either it is filled or must leave to meet schedule  Newsvendor problem issue of trucking firm ◦ Selling Capacity by the pallet  Risk of newsvendor problem on trucking firm

 Strict schedule – very rigid  Consequently suffers heavily from newsvendor problem  Collective customer needs between hubs rarely exceeds locomotive capacity

 Shipper must pay a docking fee to harbor operators  Shipping overseas – no substitute ◦ Gives shipper negotiating power ◦ Allows shipper to better mitigate newsvendor risk to customers

 Stricter the schedule = More risk of newsvendor problem  Many times shipping company must make schedule without knowing exact customer demand  Other times schedule is made based on contracts won

 Depends who has negotiating power  Negotiation power depends on availability of alternatives or substitutes ◦ Many available substitutes = Customer holds negotiating power ◦ Few available substitutes = Shipper holds negotiating power

 Oligopoly  Subject to seasonality and economic conditions  Price and Income elastic  Vertical boundaries  The newsvendor problem