This video from the Economist.com is about the possibility of using Arctic shipping routes as an alternative to other shipping routes such as the Panama Canal, as well as the discussion on how much of this unallocated land each country might receive.
We will be sure to give an update in May when the United Nations makes their final decision on how much of this land each country will be allocated.
By William Prior
This paper is primarily directed toward Supply and Logistics Management (SLM) students and those who wish to know more about the basics of SLM. This paper will focus on different purchasing models, types of discounts and the dynamics involved. Topics covered will include: Lot size purchases; Economic Order Quantity (EOQ); Just-In-Time (JIT) supply model; and the Price Discount Problem. As with most decisions in the business environment there are tradeoffs between what is desired and what is attainable.
Purchasing has a great effect on how a business is able to manage its cash flow and productivity. Different models can save money at different stages of the purchasing and manufacturing process. Purchasing different quantities and selecting delivery times has a direct impact on lowering inventory and improving lead times.
Clarifying what needs to be purchased will naturally help to determine how much and when purchases and deliveries need to be made. However there are never simple answers to these problems. Some simple factors to keep in mind are delivery lead times, order costs, availability, discounts, potential disruptions.
Knowing how long it will take to receive an order after it is placed is crucial to know what level to set the safety stock at and determine the reorder point of the inventory. Knowing what costs are associated for placing an order regardless of size will help to determine what variable costs are associated with the inventory. Knowing how available the product is to acquire is another key factor. Is the part industry standard, such as nuts and bolts, or is it highly specialized with a few suppliers able to fill the request? Discounts are common and can vary in a number of types. Negotiating with a supplier for the right type of discount is essential for reducing cost and shortening lead times. Finally, potential disruptions along the supply chain are important to understand. Every step or hand off of the supply creates a potential problem. Some risks are greater than others.
