Podcast
Questions and Answers
What can be used to analyze medium- to short-term demand for an organization’s products?
What can be used to analyze medium- to short-term demand for an organization’s products?
- Demand for similar products in the market
- Projected future demand for the organization’s products
- Demand for unrelated products in the market
- Historical demand for the organization’s products (correct)
What does macroeconomics focus on?
What does macroeconomics focus on?
- The impact of government policies on businesses
- The behavior of the economy as a whole (correct)
- The behavior of individuals and firms
- The study of consumer behavior
What does microeconomics focus on?
What does microeconomics focus on?
- The behavior of the economy as a whole
- The impact of international trade on businesses
- The study of market demand trends
- The behavior of individuals and firms given changes in prices and resource allocations (correct)
How can supply chain managers use macro- and microeconomic reports?
How can supply chain managers use macro- and microeconomic reports?
What can analysts predict if the supply or demand curve for a product shifts?
What can analysts predict if the supply or demand curve for a product shifts?
What information can help when setting cost goals for supply chain activities?
What information can help when setting cost goals for supply chain activities?
In the context of supply chain management, if logistics costs are included in the cost of goods sold, what impact does it have on the calculation of the highest gross margin price?
In the context of supply chain management, if logistics costs are included in the cost of goods sold, what impact does it have on the calculation of the highest gross margin price?
In the short term, how would suppliers generally respond to changes in product price based on price elasticity of supply?
In the short term, how would suppliers generally respond to changes in product price based on price elasticity of supply?
What is the focus of marginal analysis in microeconomics?
What is the focus of marginal analysis in microeconomics?
According to marginal analysis, when is a choice considered economically wise?
According to marginal analysis, when is a choice considered economically wise?
In a scenario where additional freight offer costs €0.05/kg and marginal cost for this new freight is €0.02/kg, what is the rational economic decision according to marginal analysis?
In a scenario where additional freight offer costs €0.05/kg and marginal cost for this new freight is €0.02/kg, what is the rational economic decision according to marginal analysis?
How does price elasticity of supply change over time?
How does price elasticity of supply change over time?
Which factor leads to decreased consumer demand?
Which factor leads to decreased consumer demand?
What do low market interest rates incentivize for businesses?
What do low market interest rates incentivize for businesses?
What is the impact of inflation on creditors?
What is the impact of inflation on creditors?
What does a sustained decrease in general prices indicate?
What does a sustained decrease in general prices indicate?
What is the aim of government central banks in relation to inflation?
What is the aim of government central banks in relation to inflation?
What defines a recession?
What defines a recession?
What does the law of demand state?
What does the law of demand state?
What is the primary driver of supply according to the law of supply?
What is the primary driver of supply according to the law of supply?
What does price elasticity of demand measure?
What does price elasticity of demand measure?
What does a price elasticity coefficient above 1.0 indicate?
What does a price elasticity coefficient above 1.0 indicate?
What do economies of scale lead to in terms of costs per unit of output?
What do economies of scale lead to in terms of costs per unit of output?
What does equilibrium in a market indicate?
What does equilibrium in a market indicate?
What does marginal analysis help with in logistics and supply chain management?
What does marginal analysis help with in logistics and supply chain management?
What does real gross domestic product (GDP) represent?
What does real gross domestic product (GDP) represent?
What is the focus of medium- to short-term demand pattern analysis in logistics and supply chain management?
What is the focus of medium- to short-term demand pattern analysis in logistics and supply chain management?
How do supply chain managers use macroeconomic trends?
How do supply chain managers use macroeconomic trends?
What do economic cycles between periods of expansion and recession in terms of gross domestic product (GDP) indicate?
What do economic cycles between periods of expansion and recession in terms of gross domestic product (GDP) indicate?
How does weighted average prices impact demand and supply according to the text?
How does weighted average prices impact demand and supply according to the text?
Study Notes
Macroeconomic Analysis for Supply Chain Management
- Marginal analysis is used for making rational daily decisions in logistics and supply chain management.
- Medium- to short-term demand patterns analyze average demand and demand volatility, caused by seasonality or random variation.
- Sales promotions and internal drivers of demand impact forecasts of future demand.
- Macroeconomics analyzes the behavior of the overall economy in response to market forces.
- Supply chain managers use macroeconomic trends to estimate their impact on industry and supply chain strategies.
- Economic cycles between periods of expansion and recession in terms of gross domestic product (GDP) are shown in Exhibit 1-17.
- Economists study economic swings to determine their causes, sustainability, and how to promote stability through public policy.
- Real gross domestic product (GDP) is the total value of all final goods and services produced within a country's boundaries.
- Real GDP is studied against the weighted average price of all products and services sold in the economy.
- Weighted average prices impact demand and supply, affecting equilibrium and triggering economic cycles.
- Macroeconomic information cannot be directly applied to one industry or company's products, but relates to trends of all goods in the economy in the aggregate.
- Understanding macroeconomic theories and current political forces can help supply chain managers modify strategic plans to reflect current and predicted economic conditions.
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Description
Test your knowledge on predicting economic effects of changes in the macroeconomic environment, market adjustments, population demographics, and market interest rates.
