|
Active Destocking
Active destocking in supply chain management is an active decision to reduce the inventory-to-sales ratio of a company. The inventory can include finished products, raw materials and goods in process. In general, active destocking is done following an autonomous, often financial decision by a company to improve its efficiency, free up cash and reduce its costs. Decisions for active destocking in general are made by financial executives or general managers. Active destocking should be distinguished from reactive destocking. Reactive destocking is a reduction of the inventory when expected demand goes down. When a company is only doing reactive destocking the inventory-to-sales ratio remains unchanged. Reactive destocking in general is done by the operational managers of the logistical activities, without additional instructions. The terms active destocking and reactive destocking were first used in an article about the Lehman Wave, published by Dutch researchers in 2009. A Lehman w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supply Chain
In commerce, a supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products to customers through a distribution system. It refers to the network of organizations, people, activities, information, and resources involved in delivering a product or service to a consumer. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product and delivering the same to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains. Suppliers in a supply chain are often ranked by "tier", with first-tier suppliers supplying directly to the client, second-tier suppliers supplying to the first tier, and so on. Overview A typical supply chain begins with the ecological, biological, and political regulation of natural resources, followed by the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Libor
The London Inter-Bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. The resulting average rate is usually abbreviated to Libor () or LIBOR, or more officially to ICE LIBOR (for Intercontinental Exchange LIBOR). It was formerly known as BBA Libor (for British Bankers' Association Libor or the trademark bba libor) before the responsibility for the administration was transferred to Intercontinental Exchange. It is the primary benchmark, along with the Euribor, for short-term interest rates around the world. Libor was phased out at the end of 2021, and market participants are being encouraged to transition to risk-free interest rates. As of late 2022, parts of it have been discontinued, and the rest is scheduled to end within 2023; the Secured Overnight Financing Rate ( SOFR) is its replacement. Libor rates are calculated for five cu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Footnotes
A note is a string of text placed at the bottom of a page in a book or document or at the end of a chapter, volume, or the whole text. The note can provide an author's comments on the main text or citations of a reference work in support of the text. Footnotes are notes at the foot of the page while endnotes are collected under a separate heading at the end of a chapter, volume, or entire work. Unlike footnotes, endnotes have the advantage of not affecting the layout of the main text, but may cause inconvenience to readers who have to move back and forth between the main text and the endnotes. In some editions of the Bible, notes are placed in a narrow column in the middle of each page between two columns of biblical text. Numbering and symbols In English, a footnote or endnote is normally flagged by a superscripted number immediately following that portion of the text the note references, each such footnote being numbered sequentially. Occasionally, a number between bracke ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Beer Distribution Game
The beer distribution game (also known as the beer game) is an educational game that is used to experience typical coordination problems of a supply chain process. It reflects a role-play simulation where several participants play with each other. The game represents a supply chain with a non-coordinated process where problems arise due to lack of information sharing. This game outlines the importance of information sharing, supply chain management and collaboration throughout a supply chain process. Due to lack of information, suppliers, manufacturers, sales people and customers often have an incomplete understanding of what the real demand of an order is. The most interesting part of the game is that each group has no control over another part of the supply chain. Therefore, each group has only significant control over their own part of the supply chain. Each group can highly influence the entire supply chain by ordering too much or too little which can lead to a bullwhip effe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bullwhip Effect
The bullwhip effect is a supply chain phenomenon where orders to suppliers tend to have a larger variability than sales to buyers, which results in an amplified demand variability upstream. In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain. The concept first appeared in Jay Forrester's ''Industrial Dynamics'' (1961) and thus it is also known as the Forrester effect. It has been described as “the observed propensity for material orders to be more variable than demand signals and for this variability to increase the further upstream a company is in a supply chain”. Science at Stanford University helped incorporate the concept into supply chain vernacular using a story about Volvo. Suffering a glut in green cars, sales and marketing developed a program to sell the excess inventory. While successful in generating the desired market pull, manufacturing did not know about the promotional plans. I ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stock Depth
Stock depth is the total stock level build up in a supply chain, from the firm most upstream to the firm most downstream in the chain. The stock depth of the supply chain is calculated as the sum of the stock levels of all firms in a given supply chain. Relation with Lehman wave Stock depth is an important element in the behavior of the Lehman wave. If the growth of an end market changes X% in a period t, the supply chain on average changes (1+0.5*Stock depth/t)*X% Therefore Y%= Stock Multiplier * X% = (1+SD/t) * X%. If SD=1 and t=1 the multiplier for the average supply chain is . If the change is more sudden, say, within 6 months, the multiplier is 2, and if the change is very sudden, say within 3 months, the multiplier is as high as 3. In a market with stable growth the effects are small. The further away a company is from the end market, the bigger the reaction. Firms that are far from the end market thus experience higher variations in growth. During a Lehman Wave, firms st ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lehman Wave Curve And Economic Cycle Curve
Lehman may refer to: People * Lehman (surname) * Lehman Engel (1910–1982), American composer and conductor of Broadway musicals, television and film * Lehman Kahn (1827–1915), Belgian educationalist and writer Places and physical features * Abbotsford-Mount Lehman, a Canadian electoral district * Lehman Township, Pennsylvania (other), either of two places * Lehman Caves, in Great Basin National Park in Nevada Institutions and organizations * Lehman High School (other), any of several schools * Lake-Lehman Junior/Senior High School, in Pennsylvania * Lehman Alternative Community School, in Ithaca, New York * Lehman Brothers, a global financial services firm which declared bankruptcy in 2008 * Lehman College, a constituent college of the City University of New York * Lehman's Hardware, a retail store in Ohio, specialized in products used by the Amish Business and finance * Lehman Formula * Lehman Wave See also * Lehmann * Lemann Lemann is a surname. Nota ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Damped Wave
Damping is an influence within or upon an oscillatory system that has the effect of reducing or preventing its oscillation. In physical systems, damping is produced by processes that dissipate the energy stored in the oscillation. Examples include viscous drag (a liquid's viscosity can hinder an oscillatory system, causing it to slow down; see viscous damping) in mechanical systems, resistance in electronic oscillators, and absorption and scattering of light in optical oscillators. Damping not based on energy loss can be important in other oscillating systems such as those that occur in biological systems and bikes (ex. Suspension (mechanics)). Not to be confused with friction, which is a dissipative force acting on a system. Friction can cause or be a factor of damping. The damping ratio is a dimensionless measure describing how oscillations in a system decay after a disturbance. Many systems exhibit oscillatory behavior when they are disturbed from their position of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lehman Brothers
Lehman Brothers Holdings Inc. ( ) was an American global financial services firm founded in 1847. Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merrill Lynch), with about 25,000 employees worldwide. It was doing business in investment banking, equity, fixed-income and derivatives sales and trading (especially U.S. Treasury securities), research, investment management, private equity, and private banking. Lehman was operational for 158 years from its founding in 1850 until 2008. On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection following the exodus of most of its clients, drastic declines in its stock price, and the devaluation of assets by credit rating agencies. The collapse was largely due to Lehman's involvement in the subprime mortgage crisis and its exposure to less liquid assets. Lehman's bankruptcy filing was the largest in US his ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Raw Materials
A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials that are feedstock for future finished products. As feedstock, the term connotes these materials are bottleneck assets and are required to produce other products. The term ''raw material'' denotes materials in unprocessed or minimally processed states; e.g., raw latex, crude oil, cotton, coal, raw biomass, iron ore, air, lumber, logs, water, or "any product of agriculture, forestry, fishing or mineral in its natural form or which has undergone the transformation required to prepare it for international marketing in substantial volumes". The term ''secondary raw material'' denotes waste material which has been recycled and injected back into use as productive material. Ceramic While pottery originated in many different points around the world, it is certain that it was brought to light mostly ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcy Of Lehman Brothers
The bankruptcy of Lehman Brothers on September 15, 2008, was the climax of the subprime mortgage crisis. After the financial services firm was notified of a pending credit downgrade due to its heavy position in subprime mortgages, the Federal Reserve summoned several banks to negotiate financing for its reorganization. These discussions failed, and Lehman filed a Chapter 11 petition that remains the largest bankruptcy filing in U.S. history, involving more than in assets. The bankruptcy triggered a 4.5% one-day drop in the Dow Jones Industrial Average, then the largest decline since the September 11, 2001, attacks. It signaled a limit to the government's ability to manage the crisis and prompted a general financial panic. Money market mutual funds, a key source of credit, saw mass withdrawal demands to avoid losses, and the interbank lending market tightened, threatening banks with imminent failure. The government and the Federal Reserve system responded with several emergency ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lehman Wave
The term Lehman Wave refers to an economy-wide fluctuation in production and economic activity, with a wavelength of between 12 and 18 months, driven by a sudden major disruption of the economic system. The Lehman Wave is a damped, wave-like fluctuation around equilibrium. The amplitude of the Lehman Wave is larger for a business that is further away from its end market than for a business that is closer to its end market, which difference is caused by cumulative de-stocking of the intermediate supply chain. This term Lehman Wave has first been used by Dutch researchers in 2009 who gave that name to the economic wave that started in September 2008. They argue that the latter was caused by global de-stocking after the financial panic following the bankruptcy of Lehman Brothers on September 15, 2008. The Lehman Wave can have strong effects on the sales volume and therefore on the profitability of companies that are located upstream in the supply chain. Mechanism The strong dip in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
