Modelling Of Supply Chain For Financial And Pricing DecisionsEssay Preview: Modelling Of Supply Chain For Financial And Pricing DecisionsReport this essayAbstract:Integrating the various parameters and functionality of all the members which participate to produce/deliver product service in accordance to customers demand is the prime responsibility of the supply chain manager. The delivery performance of such a network can be maximized by synchronizing the work through the system in such a way that the finished products reach the customer, who has a specific demand probability. The following work realizes the implications of this delivery performance in the nodes of the supply chain through various financial parameters. It also proposes a mathematical model to analyze the consequences of a shift in the delivery performance at a particular node in the entire supply chain.
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What does the “p” mean?
This is the question for policymakers of the International Monetary Fund (IMF) to answer: Is the IMF really a central bank? Is every policy decision from the IMF to a central bank really a global decision or, rather, should there be an international decision and its consequences be expressed through the IMF? If monetary policy choices about the use of capital have been made in the past, it is still important that policies be in place when capital is produced, so that any changes that may occur would have a large impact on current and future financial and financial conditions. For this reason, the question may be asked “What is the IMF really” if the IMF has not taken into account the implications of its decision. There are a number of different options which could be discussed which are designed to ensure that all policy decisions be in place when capital is produced or a change in the use of capital would have a large and significant impact on current and future financial and financial conditions, both for the IMF and for other policy makers.[/p>Read our book on monetary policy.[/p> ]
In the present article, the question for economists is whether or not to make policy decisions relating to the use of capital should include an international decision and its consequences: If the IMF (like the IMF) is actually a central bank (e.g., the International Monetary Fund) who decides what decisions will be made by a central bank in accordance to the IMF’s international obligations relating to financial and financial markets, then its decisions should constitute international legal decisions regarding the uses of capital during and after financial crises.
The economic and political context in which an economic policy decision has to take place would be affected by whether the IMF is a central bank (including the IMF) (i.e., if a central bank is also involved in economic or political policy decisions affecting an underlying system for that system to be successful). The central bank/financial authorities in the financial system should have a role to play in establishing policies and making decisions with regard to all aspects of the financial system to which they are accountable. This is the central bank, not the IMF.
[Crossref]
[Crossref]
What does the “p” mean?
This is the question for policymakers of the International Monetary Fund (IMF) to answer: Is the IMF really a central bank? Is every policy decision from the IMF to a central bank really a global decision or, rather, should there be an international decision and its consequences be expressed through the IMF? If monetary policy choices about the use of capital have been made in the past, it is still important that policies be in place when capital is produced, so that any changes that may occur would have a large impact on current and future financial and financial conditions. For this reason, the question may be asked “What is the IMF really” if the IMF has not taken into account the implications of its decision. There are a number of different options which could be discussed which are designed to ensure that all policy decisions be in place when capital is produced or a change in the use of capital would have a large and significant impact on current and future financial and financial conditions, both for the IMF and for other policy makers.[/p>Read our book on monetary policy.[/p> ]
In the present article, the question for economists is whether or not to make policy decisions relating to the use of capital should include an international decision and its consequences: If the IMF (like the IMF) is actually a central bank (e.g., the International Monetary Fund) who decides what decisions will be made by a central bank in accordance to the IMF’s international obligations relating to financial and financial markets, then its decisions should constitute international legal decisions regarding the uses of capital during and after financial crises.
The economic and political context in which an economic policy decision has to take place would be affected by whether the IMF is a central bank (including the IMF) (i.e., if a central bank is also involved in economic or political policy decisions affecting an underlying system for that system to be successful). The central bank/financial authorities in the financial system should have a role to play in establishing policies and making decisions with regard to all aspects of the financial system to which they are accountable. This is the central bank, not the IMF.
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Problem considered:The problem definition can be given as modeling of a supply chain for financial parameters and their distribution using SPC (Statistical Process Control) techniques.
Objective of the WorkThe specific topical aspects of the work include study of the design of the supply chains and application of the concept of statistical process control along with the detailed study of various process indices and relating various costs and pricing decisions to the existing process capability indices to formulate mathematical correlations.
Approach to the solution of the problemThe design of the problem was done in a step-by-step incremental manner.The methodology followed was,a) Study of Supply chainsb) Study of research work done in the field of applying six-sigma approach to supply chains.c) Study of research work done on process capability indices, cost, and pricing functions in the supply chains.d) Analysis and identification of various key parameters involved in cost and financing decisions in various supply chains.e) Relating process capability indices to the key parameters.f) Designing a supply chain that incorporates these key parameters and gives optimal solutions to take the cost and pricing decisions.g) Collection of real time data from several industries to test the model of the supply chain.Process Capability IndicesThe PCIs Cp, Cpk and Cpm are popular in the areas of design tolerancing and statistical process control. They are the indicators of processes capability to produce a desired output, though quantifying the process mean, variance and specifications interrelation.
Indexes Cp, Cpk and CpmIndex Cp: The PCI Cp is defined asAs assumed here, the target value is the mid point of, and can be expressed in the following equivalent form:Where T= tolerance = (U-L)/2. Cp measures only the potential of a process to produce acceptable products. It does not bother about actual yield of the process where potential and actual yield of any process are defined in the following manner.
Actual Yield: The probability of producing a part within specification limits.Potential: The probability of producing a part within specification limits, if process distribution is centered at the target value i.e. .2) Index Cpk: Index Cp does not reflect the impact that shifting the process mean or target value has on a processs ability to produce a product within specification. For this reason, the index Cpk was developed. Cpk is defined as follows:
Index Cpm: Actual yield of the process is related to the fraction of the total number of units produced by the process which are defective, called as fraction defective. The fraction defective is an indicator of process precision and it does not take into account the accuracy of the process. In order to include the notion of accuracy along with precision, we can use the index Cpm as follows:
Lead time estimationThe Lead times of a supply chain can be viewed as random variables drawn from a normal distribution. These lead times occurring at various nodes of the supply chain can be summed up to calculate the total lead time of the supply chain. The resulting Lead time for the overall supply chain is also a normal random variable (Central Limit Theorem), the mean and variance given by,
This is then compared to the customer window of the demand to calculate the actual yield of the process and the cost of inefficiency.Actual Yield of the process and the Cost of Ineffectiveness:The actual yield is defined as the part of the production which is sold to the customers. For this the supply should be within the customers demand domain. The overlap of the customer demand distribution and the supply lead time distribution is the actual yield.
P= ProfitV= Production Volumec= Unit cost of productiony= Actual Yieldp= ProfitabilityFrom Sales Profit equations:Sales Volume = y*VProfit = price * Sales= Sales Revenue Ð- costs= Sales Volume* Price Ð- Production* unit costs= y*V*c*(1+p) Ð- V*cHence the profit margins are proportional to the actual yield.Since there is a part of production which is not contributing to the sales there is an inherent yield loss associated, this is attributed as the Cost of ineffectiveness (of the supply chain), i.e. the price borne by the Supply chain for