supply chain quesitons
Emmaa LEE
1_supply_chain_management_preparation_foundation1.pptxHow to Use This Presentation
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This is an example of adding notes to the Powerpoint.
Science
What is science? Making assumptions or hypothesis, carrying out observations and experiments, drawing conclusions and generalization
Causal relationships (A causes B to happen) vs. correlation
Primary data vs. secondary or tertiary data
Can you trust the Internet? Pseudoscience and urban myths…
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Definition of science
What is your example of science?
How would you examine the following hypotheses?
Parking meter experimentation (are parking meters accurate in measuring time?)
Supernature power (do prayers work?)
Innate difference between men and women (women are genetically disadvantaged for science and engineering?)
Causal relationship: milk does a body good, kids who learn to play music perform better in school, don’t buy cars made in Friday afternoon (because workers are not paying attention; they are planning for the party ahead)
Industrial Revolution and Scientific Management
Industrial revolution and the use of machines
Scientific Management: Fred Taylor applying scientific principles to management
Divide and conquer: divide a complex task into smaller and more manageable steps then train people to specialize in it (McDonald’s)
Specialist vs. generalist approach
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When did IR happen? Where? And why?
What was Fred Taylor’s scientific management? What are the four principles? How would you apply in life these principles?
Does McD follow these SM principles? How? Why?
Micro Economics I
Utilities: place, time, form, possession, transaction
Production function: a set of ingredients/production factors and their relationships that make things happen
Economies of scale (quantity/Costco) and scope (variety and coverage/Direct TV, Macy’s)
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Utilities are satisfaction or values associated with product attributes.
Production function defined: what are the production factors to make cars?
Economies of scale: the more you buy, the more you save
Economies of scope: candy shop in mall, battery shop
Micro Economics I
Place utilities: Casino ATMs w/ higher fees, expensive bottled water at Disneyland
Time utilities: long stem roses on Valentine’s Day, Halloween costume on Nov. 1
Form utilities: Gogurt, baby carrots, Tyleno in liquid gel/chewable form
Possession utilities: rental car, apartment
Transaction utilities: Black Friday, Kohl’s couponing, limited time offerings
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Time utilities refers to items you paid different prices for because they were purchased in different times. (Christmas trees on Dec. 26 are half off, Vegas hotel rates on weekend are more expensive.)
Place utilities refers to different prices charged at different places you purchase the item. (books in campus bookstores are usually more expensive.)
Form utilities refers to different prices for the different shapes/forms of the same product. Target charges you $10 fee if you want your bikes assembled or you will get a box with semi-assembled parts. One also pays extras for pre-cooked bacons and salads in a bag. The difference in price for baby carrots and regular carrots can only be explained by form utilities.
Possession utilities say that you have to own it to enjoy it. Examples would be that you pay to own/spend the night at a hotel.
Transaction utilities are values associated with shopping. Examples are Kohl’s forever % off and heavy discounts to make shoppers feel as if they got a bargain. Buy One Get One free is also another way to increase transaction utilities.
Can You Identify These Utilities?
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Why do people use Redbox?
Why is it more expensive to buy a Lunchable than to buy items separately than put together by oneself?
Why is it that the black sandals on the left are $15 more expensive than the one on the right when they have exactly the same style and materials?
Why do restaurants have happy hours where drinks and food are half off?
Why do consumers respond to Office Depot’s Mega Sale flyer?
Why is there a special for seniors on Tuesday?
Micro Economics II
Demand, willingness to pay: Tastes and needs (wants), income or wealth, substitute goods, complementary goods (examples?)
Price elasticity or sensitivity of demand, elasticity of supply
Barriers to entry and exit (cell phone contracts, storage rental, apartment move-in special)
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Substitute vs. complementary goods: when Coke Zero is not available, Diet Coke, regular Coke, or Diet Pepsi could be substitutes. Shoe stores sell socks because they are complementary.
Examples of elastic and inelastic products: water is inelastic while beer is elastic
Barriers to entry: how easy it is to get into the market?
Barriers to exit: how easy it is to get out of a market/contract?
