Sunday, February 23, 2020
International Business Assignment - Essay Example Company also became an online store in February 2005 with rebelsport.com.au. Now it has become all the more convenient to purchase performance runners, lifestyle footwear and apparel, gym equipment, yoga clothes, junior wear, licensed jerseys, specialized team and individual sport equipment, camping and outdoor gear and such items just at the click of a mouse. The latest financial figures of company (sales revenue for the nine months ended 1 April 2006) indicate an increase in sales revenue by 14.5% to $272.9 million compared to nine months ended 2 April 2005. Company hopes to cash-in on the Soccer mania and is looking forward to the period of April - June 2006 when the Soccer World Cup begins in Germany. Rebel Sport is associated with some major sporting bodies like National Rugby League (NRL), Cricket Australia, and Soccer NS around Australia. Company has also developed two sponsorship programs MVP and Rebel Sport Rookies to assist both sporting clubs/schools and individuals. In order to fulfill its commitment towards the society, company supports some charities as well. Starlight Foundation, The Day of Difference Foundation, Jeans for Genes (an initiative of The Children's Medical Research Institute of Australia-CMRI) are some of the charity organizations being benefited by this Philanthropy. New avenueNew avenues for business are explored when environment demands increase in pace of activity. Strategists feel more satisfied and comfortable with the prospects of growth from expansion and once the company feels secure and experienced enough on the home-ground it can very well start thinking about crossing the borders and entering the fiercely competitive international arena. It can very well be said that online retail counter can cater to anybody around the globe but for the brand to be recognized and developing 'brand loyalty' physical presence in different markets is a must. Rebel Sports has an experience of more than 20 years in this field so it can very well plan a strategy for opening stores in other countries as well. Today, rules of business success have changed. Innovation and the art of mastering the technological edge have emerged as the new competitive advantages. Information technology and improvements in global telecommunications are giving international firm s more flexibility to shape their global strategies. Rebel sports made good use of the information age by starting online training of its staff and thus channeling the inherent creative talents of all individuals in the right direction, a recipe for success. Now the moot question is 'which strategy to opt for, while entering the International arena. In general the strategies could be categorized as; 1. A multi domestic strategy 2. A global or international strategy 3. A transnational strategy A multi domestic strategy enables individual subsidiaries of a multinational firm to compete independently in different domestic markets. The multinational headquarters coordinates financial controls and major marketing policies, and may centralize some R&D and component production. Otherwise subsidiary behaves like a strategic business unit that is expected to contribute earnings and growth
Thursday, February 6, 2020
Investment report - Research Paper Example The second paragraph discusses the short grid of the companyÃ¢â¬â¢s stock. It analyses the movement of the stock in the previous years, and further concludes that the BEST BUY stock had been decelerating and continues to predict that there will be further deceleration in the next coming years due to poor sales made during the holiday and its poor marketing strategies. The third paragraph discusses the valuation of the stock of the company. The companyÃ¢â¬â¢s stock had been decelerating in the previous years and it further shows that will continue decelerating further in the next year and therefore the best decision is to short the BEST BUY stock. The fourth paragraph analyses the management ability which shows that the management had been arrogant in promoting the companyÃ¢â¬â¢s products. They did not use the internet which most of its competitors used to sale to the customer; this resulted into poor sales and lowered the companyÃ¢â¬â¢s revenue. The fifth paragraph discusses the sentiments based on the companyÃ¢â¬â¢s balance sheet. The companyÃ¢â¬â¢s balance sheet reveals that the assets of the company are inadequate to pay off the companies obligations, and this may put the company at a greater risk. The sixth paragraph analyses the fundamentals based on the companyÃ¢â¬â¢s balance sheet. Lastly, it discusses the chart best on the EE charts of the Bloomberg and makes a conclusion to short BEST BUY STOCK. This report shows the discussions of the investment project of short BEST BUYs stock. The analysis discusses the reasons based on the short grid, valuation, management, fundamentals, sentiments and charts of the company. The investment on the short BEST BUY stock for the next year may be the best investment decision according to the analysis based on the streetwise-Bloomberg analyst recommendation function (ANR) and the earnings estimates (EE) charts. The company had good growth in the previous years, but due to unmet forecast on its holiday
Wednesday, January 29, 2020
Oedipal Complex in the Tragedy of Hamlet Essay How might the Oedipal complex factor into the tragedy of Hamlet? Oedipal complex FreudÃ¢â¬â¢s theory of stages of development for boys To describe a boyÃ¢â¬â¢s feelings of desire for his mother and jealously and anger towards his father Also thought boys felt they were in a completion with their father for possession of his mother His father is looked at as a rival They boy is observing his father in hopes of being like him or even better Those that carry on these feelings into adulthood are considered to have an Oedipus Complex During the Gibson movie Hamlet hates his uncle/step father; Claudius which Freud says is alright. Claudius is now the new king of Denmark We guess Hamlet would have taken the throne eventually if Queen Gertrude had not remarried. It seems like Claudius and Hamlet have built a rivalry and are in a competition for Gertrude. Because Hamlet feels like Claudius has taken his place next to Gertrude. One of the most controversial scenes in the Gibson movie is when Hamlet goes into GertrudeÃ¢â¬â¢s bedroom and confronts her about Claudius. He tells her not to have sex with Claudius (jealousy) HeÃ¢â¬â¢s obsessed with the thought of his mother in bed During this confrontation there is a lot of sexual tension between the two The movie shows them passionately kissing What other comparisons can we draw between Hamlet and Oedipus? Similarities Differences Oedipus earned the trust of his people Oedipus acts on his actions How could one make the argument that the mother figure is the root of all problems in the play? What is the role of King HamletÃ¢â¬â¢s ghost in the play? How do you know that it is not a figment of HamletÃ¢â¬â¢s imagination? Why canÃ¢â¬â¢t Gertrude see it? Does Hamlet love Ophelia? How does one obtain power in Hamlet? Explain the importance or lack of importance of thinking and action. How do the Id, Ego, and Superego emerge in the play? At what point in the movie do you believe Hamlet crossed Ã¢â¬Å"a line of madnessÃ¢â¬ ? Does he come back? When? How is Hamlet being portrayed in the Gibson movie, the other movie, and the play? What other dramatic differences can you identity among the playÃ¢â¬â¢s text, the Gibson version, and the third version that you viewed? The biggest difference between the play and the Gibson version is that Fortinbus isnÃ¢â¬â¢t mentioned.
Monday, January 20, 2020
Erythema migrans (EM) is a red, slowly expanding rash which is associated with the bite of ticks. European physicians observed EM in patients in the early 20th century and theorized that it was caused by a tick-borne bacterium. Later the in the 1970Ã¢â¬â¢s a physican observed a clusters of child with arthritis in and around Lyme, Conneticut. After further investigation it was discovered that the arthritis occurred subsequent to the presence of tick bites followed through with EM rash lesions. It was not until 1984 when conclusive evidence showed that the bacterium spirochete Berrelia burgdorferi caused Lyme disease. In 2002 Lyme disease caused more than 23, 000 infections in the United States (1) . Lyme disease is a zoonotic disease caused by the bacterium spirochete B. burgdorferi that transmitts the bacterium to humans through the bites of western black-legged deer ticks (Ixodes scapularis). This tick is much smaller than a dog or cattle tick and feed by inserting their mouths into the skin of a host and slowly receive their vital fluid (1). Early localized Lyme disease occurs 3-30 days after the tick bites. Symptoms include EM, mild muslce aches, fever, headache, and lymphadenopathy. Early disseminated disease occurs 1-4 months subsequent to the tick bite. Symptoms include cranial-nerve facial palsy, meningitis, radiculopathy, and heart block. In the late platform of the disease which begins 3-4 months after the tick bite. Symptoms include arthirits in big joints, rigid headache, encephalitis and cognitive disorders. Early localized Lyme disease is treated with doxycycline or amoxicillin for 14-21 days. Early disseminated and late Lyme disorder are treated for 14- 28 days with either oral or parental therapy (ceft... ...ible through seasonal feeding activity of nymphal I. scapularis and the increase of outdoor activities tribe engage in during these months (4). In 2002 there were a total of 23,763 reported cases of Lyme disease, more than any previous year (2). Similar to previous years, the highest incidence rates occurred in northeastern, mid-Atlanatic and north central states. The largest proportion of cases were reported among ages 5-14 years and 50-59 years. Factors influences this grow in reported cases include a growing deer population, increased residential development of wodded areas, tick dispersal to new areas, improved disorder remembrance in areas where Lyme disease is endemic, and enhanced reporting (2). The NETSS system is weighty because it helps determinine who is at risk and where the highest incidence rates are that need targeted preventative measures.
Sunday, January 12, 2020
Introduction 1What does philosophy mean? -Everyone has a philosophy -We have ideas concerning things, people, the meaning of life, death, God, what is good and bad. -We may have certain attitudes to life, certain ways of looking at things. -For example: -I am an optimist. I can always see a positive side to most unhappy situations. -I donÃ¢â¬â¢t believe in worrying too much. I think about today. Tomorrow can take care of itself. -Although an individual claim this to be his philosophy and rightly so. But this is not philosophy as a discipline. It is too broad, vague, superficial, impersonal and unclear. It does not adequately describe the work of a philosopher. -We need to define philosophy more specifically. 2The word Ã¢â¬Å"philosophyÃ¢â¬ . -The Word Ã¢â¬Å"PhilosophyÃ¢â¬ . -Philia (love) + Sophia (wisdom) = the love of wisdom. 3Definitions of philosophy a. The study of the nature and meaning of the universe and of human life Online Oxford Advanced LearnerÃ¢â¬â¢s Dictionary. b. Philosophy is a rational attempt to look at the world as a whole. 4What does philosophy seek to do? -Philosophy seeks to examine fundamental questions about the universe and about ourselves with the hope of coming up with consistent principles by which we can understand and live. 5Human beings have always sought answers to certain fundamental questions Ã¢â¬â What are these fundamental questions? -What makes an action write or wrong? -What is my purpose in the world? -What is truth? -What makes a good life? -Is God important in our lives? -Where does knowledge come from and how do we know that our knowledge is true. -What is the relationship between mind and body? 6Why do we need philosophy? Why do we need philosophy when we have science and technology? -We have advanced so much in science and technology -We live in cities, we have conquered the air and have ventured into space? -Communication is so developed that distance no longer matters -We have immense power over nature -We are able to produce more goods and services than ever before -So, why do we still need philosophy? 7Yet all these advances cause us to be disturbed and anxious -There is a danger that the very technology we have developed could destroy us. -For example nuclear technology. -We seem to be unable to deal with the problems of war, famine, terror, distribution of wealth, pollution, the threatened extinction of wildlife, exploitation and oppression of the weak . -Knowledge and values appear to be divorced. -This is where philosophy comes in. It helps us to examine our lives as individuals and groups. -Philosophy may not be able to provide solutions to all the worldÃ¢â¬â¢s problems. But it helps to examine issues clearly, consider options and help us to make informed decisions. -With poor, incomplete and shallow reasoning we cannot build an enlightened society -If we are unable to distinguish between valid and invalid reasoning, then we become victims of persuasive orators, cult leaders and unscrupulous political leaders. -Philosophy helps us to see more deeply and clearly into an issue. It helps us to question traditional and outdate beliefs so that we can make informed choices -Knowledge of ethical systems help us to live ethical lives at the personal and communitarian level. -Knowledge of what constitutes beauty helps us to appreciate and respect differences in individual and cultural concepts of beauty and art. -Being able to think critically will help us to be aware of any irrational and oppressive beliefs in religion. 8The traditional divisions of philosophy. a. Logic b. Metaphysics c. Epistemology d. Value Theory LOGIC aLogic. -The systematic study of rules to distinguish or recognize good arguments from bad. -In an argument, groups will give opposing views. -How do we know which argument is good and which is not good. -Logic helps us to do so by providing rules to recognize right argument from wrong argument. -It is concerned with tests to find out which arguments are valid. -Logic runs through all the other branches of philosophy. METAPHYSICS -bMetaphysics The study of the nature of being and of the world. -It is concerned with the fundamental nature of all reality, both visible and invisible. -It asks what reality is, why it is, and how we can understand it. Ontology That part of metaphysics that studies being or existence. EPISTEMOLOGY cEpistemology The study of the sources, nature and validity of knowledge. -It deals with issues like: -What are the sources of knowledge? (Origin of knowledge) -Where does genuine knowledge come from? -How do we know? -What is the nature of knowledge? (Appearance and reality) -Is there a real world outside the mind? -If so, can we know it? -Is our knowledge valid? (Truth/Verification) -How do we distinguish truth from error? Two traditional schools of thought have sought to answer the questions above: -Rationalism -Human reason alone can discover the basic principles of the universe -Empiricism -All knowledge ultimately comes from sense experience, and therefore our knowledge is limited to what can be experienced. There is a relationship between metaphysics and epistemology. Our understanding of reality (metaphysics) depends on our understanding of what can be known (epistemology). Our theory of knowledge (epistemology) depends on how we understand ourselves in relation to the whole of reality (metaphysics). VALUE THEORY dValue Theory The branch of philosophy that studies values. -It can be subdivided into ethics, aesthetics, and social and political philosophy. iethics: is concerned with morality; right or wrong behavior. -the three areas of ethics are : descriptive, normative and metaethics. -descriptive ethics (what is ) identifies motives, desire and intentions of human conduct and acts. It describes moral actions. -normative ethics (what ought to be) proposes the principles by which people ought to act and live. These are called ethical theories. Ã¢â¬â Ã¢â¬â -Meta-ethics(analysis) on how we understand, know about, and what we mean when we talk about what is right and what is wrong. It deals with the meaning of key concepts, techniques of reasoning and analysis, and linguistic conventions It deals with matters like what do moral terms mean? What sort of mental state is involved in accepting a moral claim Ã¢â¬â a belief, an emotion? Is there any sort of moral reality or facts? Is ethical knowledge attainable? If so, how? In fact, drawing the conceptual distinction between Metaethics, Normative Ethics, and Applied Ethics is itself a Ã¢â¬Å"metaethical analysis. Ã¢â¬ ii. Aestheticsis concerned with the theory of art and beauty. -Many philosophical problems in aesthetics involve critical judgements.? -It deals with concepts of concepts of beauty. Is beauty subjective or objective? iii. Social and political philosophyisconcerned with value judgments concerning society, the state and the individualÃ¢â¬â¢s relation to these institutions -It deals with issues like -Why should individuals live in society? -What should be the social ideals of liberty, rights, justice, equality and responsibility -Why should anyone obey any government? -Why should some individuals or groups have political power over others -Who should have political power over others? -What should the scope of political power be? -What are the goals of government? Glossary 1philosophyphilia (love) + Sophia (wisdom) = the love of wisdom 2logicThe systematic study of rules to distinguish or recognize good arguments from bad 3metaphysicsThe study of the nature of being and of the world 4epistemologyThe study of the sources, nature and validity of knowledge 5value theoryThe branch of philosophy that studies values. It can be subdivided into ethics, aesthetics, and social and political philosophy. 6rationalismHuman reason alone can discover the basic principles of the universe 7empiricismAll knowledge ultimately comes from sense experience, and therefore our knowledge is limited to what can be experienced 8aesthetics Is concerned with the theory of art and beauty.
Saturday, January 4, 2020
In chapter 20 of The Picture of Dorian Gray by Oscar Wilde, Dorian reflects on his past crimes and wonders whether he will ever change and retrieve his innocence again. Throughout the final chapter of the novel, the elements of Gothic novel that Wilde explores conveys the idea of the pursuit of individualism. DorianÃ¢â¬â¢s wild, racing emotions clearly show how much he is driven by his readiness to fulfill his desires under any circumstance. Through this, the use of specific words and punctuation markings highlight DorianÃ¢â¬â¢s personal yearning of removing himself from his past. First of all, Dorian has evidently changed in contrast to the beginning of the book. In this chapter, he aims for a different purpose, to start his life new and pure again. However, Dorian still strives merely for what he wants instead of thinking for others. He is open to any way that can make it possible to accomplish his own goals. DorianÃ¢â¬â¢s good act of leaving Hetty was simply in response for the desire to return to his innocent state. It is written, Ã¢â¬Å"Perhaps if his life became pure, he would be able to expel every sign of evil passion from the faceÃ¢â¬ ¦he would be good and the hideous thingÃ¢â¬ ¦would no longer be a terror to himÃ¢â¬ (211). The way Dorian introduces his act of kindness indicates that the only reason he kept Hetty from being corrupted was for his own benefit to see his soul new again. In all, his actions were far from being due to good intentions. Furthermore, DorianÃ¢â¬â¢s concerns remain solely onShow MoreRelatedThe Picture Of Dorian Gray And Atlas Shrugged By Ayn Rand1463 Words Ã |Ã 6 Pagesnecessary pattern, The Picture of Dorian Gray by Oscar Wilde and Atlas Shrugged by Ayn Rand have vital characters who act differently than society hopes and expects. In The Picture of Dorian Gray, Dorian Gray and Lord Henry Wotton are the main characters who represent the struggle of the individual versus society, each in their own way. Lord HenryÃ ¢â¬â¢s philosophy is very self-centered, with his own pleasures being central to all aspects of his life. This belief system rubs off on Dorian early in the novelRead MoreAn Analysis of Art in Europe from 1873 to 19132761 Words Ã |Ã 11 Pagesexpressing at once both a longing for an old world spirit and an appreciation for modern and revolutionary ideas. The century of feeling and realism would culminate, of course, in the irony of Oscar Wilde who understood that all art was quite useless if beauty itself had no function in the modern world. Wilde accepted beauty on the virtue of its own merits signaling a transcendental belief (of which De Profundis is the ultimate expression). Yet, the art world after Wildes death in 1900 had already
Friday, December 27, 2019
Sample details Pages: 11 Words: 3367 Downloads: 5 Date added: 2017/06/26 Category Management Essay Type Analytical essay Did you like this example? Inventory may be desirable, even necessary, for smooth operation and good customer service in many situations. For instance, inventory can be used to reduce the lead time to respond to customer demand, to smooth out the production rate when there are variations in demand, and to protect the company from underestimates of demand (forecast errors) or shortage of supply. Reasons such as these, plus the fact that inventory is considered an asset on a companys balance sheet, have led many companys to carry excessive amounts of inventory. DonÃ¢â¬â¢t waste time! Our writers will create an original "Inventory Management in a Multinational Company" essay for you Create order Some companies for example, the Japanese manufacturer Toyota, have become known for their ability to operate with low inventories and to achieve a high inventory turnover. (Inventory turnover is basically the ratio of sales to the average inventory level, both measured at cost or retail price.) The Japanese approach is to keep in process inventory low and to achieve quick flow of the product through the production cycle. Being able to respond quickly to demand, companies can work from a shorter range forecast, which is more accurate, so they need less safety stock to protect from uncertainty.  2. Aims and objectives Inventory management is an important concern for managers in all types of businesses. For companies that operate on relatively low profit margins, poor inventory management can seriously undermine the business. The challenge is not to pare inventories to the bone to reduce costs or to have plenty around to satisfy all demands, but to have the right amount to achieve the competitive priorities for the business most efficiently.  Aims and objectives of this thesis are as follows: Deciding where to position inventory Determining when to replenish inventory Calculating how much to order Determining the placement of safety stock Refacilitating the use of business resources for profitable business results Ensuring the target level of inventory is available to support demand. 3. INVENTORY Inventory is defined as the stock of any item or resource used in organization . An inventory system is a collection of people, equipment and procedures that function to keep account of the quantity of each item in inventory and to determine which items to buy or produce in what quantities and at what times. Even very simple method that accomplishes these functions cost money to operate. Some inventory system requires transaction reporting to keep track of every instance in which units are added to or taken from the existing inventory. This perpetual inventory records can be expensive, but the additional expense can be justified for products that are relatively expensive to hold in inventory 3. 1. CYCLE INVENTORY The portion of total inventory that varies directly with lot size, is called cycle inventory. Determining how frequently to order, and in what quantity, is called lot sizing, two principles apply. The lot size, Q, varies directly with the elapsed time (or cycle) between orders. If a lot is ordered every five weeks, the average lot size must equal five weeks demand. The longer the time between orders for a given item, the greater the cycle inventory. At the beginning of the interval, the cycle inventory is at its maximum or Q. at the end of the interval, just before a new lot arrives, cycle inventory drops to its minimum, or 0. the average cycle inventory is the average of these two extremes: Average cycle inventory = This formula is exact only when the demand rate is constant and uniform. However, it does provide a reasonably good estimate even when demand rates are not constant. Factors other than the demand rate also may cause estimating errors when this simple formula is used. 3.2. SAFETY STOCK INVENTORY To avoid customer service problems and the hidden costs of unavailable components, company holds safety stocks. Safety stocks inventory protects against uncertainties in demand, lead-time, and supply. Safety stocks are desirable when suppliers fail to deliver the desired quantity on the specified date with acceptable quality or when manufactured items have significant amounts of scrap or rework. Safety stock inventory ensures that operations are not disrupted when such problem occur, allowing subsequent operations to continue. Figure 1: Various types of Inventory To create safety stock, a farm places an order for delivery earlier than when the item is typically needed. The replenishment order therefore arrives ahead of time, giving a cushion against uncertainty. Inventory used to absorb uneven rates of demand or supply, which businesses often face, is referred to as anticipation inventory. Predictable, seasonal demand patterns lead themselves to the use of anticipation inventory. Anticipation inventory also can help when supply, rather than demand, is uneven. A company may stock up on a certain purchased item if its suppliers are threatened with a strike or have severe capacity limitations. 3.3. ANTICIPATION INVENTORY Inventory used to absorb uneven rates of demand or supply, which businesses often face, is referred to as anticipation inventory. Predictable, seasonal demand patterns lead themselves to the use of anticipation inventory. Anticipation inventory also can help when supply, rather than demand, is uneven. A company may stock up on a certain purchased item if its suppliers are threatened with a strike or have severe capacity limitations. 3.4. PIPELINE INVENTORY Inventory moving from point to point in the materials flow systems called pipeline inventory. Materials move from suppliers to a plant, from one operation to the next in the plant, from the plant to a distribution center for customer, and from the distribution center to a retailer. Pipeline inventory consists of orders that have been placed but not yet received. Pipeline inventory between two points, for either transportation or production, ca be measured as the average demand during lead time, , which is the average demand for the item period (d) times the number of periods in the items lead time (L) to move between the two points, or Pipeline Inventory = = dL.  4. BATB Inventory Management There are some standard management theories as we described earlier in chapter two. The operational environment varies firms to firms, companies to companies. Based on the different varying conditions most companies do manage the inventory at their own. They do not follow exactly what the theory implies but analyzing the theories they go for the decisions that suit them most effectively and efficiently. The goal should not be to minimize inventory or to maximize customer service but rather to have the right amount to support the competitive priorities of the company. 4.1. BATB Inventory System BATB inventory system can be compared with a two-bin system in which an items inventory is stored at two different locations. Inventory is first withdrawn from one-bin. The two-bin system implies that if the first bin is empty, the second bin provides backup to cover demand until a reenlistment arrives . BATB has the flexibility to locate their inventory at different points from supplier to warehouse at supplier premises which is very good advantage for a company. The demand manager and the MPS manager reviews the inventory positions on the daily basis and then go for receiving the lot from the pipeline inventory. This indicates that they are maintaining the pipeline inventory. It helps them reduce the lot size to be stocked at warehouse. BATB Inventory includes: Finished goods Bled sets Filter rods Wrapping materials Leaf Tax stamps Bandle rolls The study is mainly focused on the leaf. Because this is the major concern in any cigarette manufacturing company as it holds the maximum cycle time. We will work with the raw materials inventory. Mainly BATB has two types of materials. These are wrapping material and Tobacco. They receive raw materials from both local and foreign suppliers. Foreign suppliers are mainly from Brazil, Argentina, Canada, South Africa and Zimbabwe. For local suppliers average lead-time is 10 to 15 days and for the foreign suppliers lead-time is 90 to 120 days. Leaf is supplied by both the local and foreign supplier. But ignoring the local leaf as it takes less time, we will take the imported leaf in account to analyze. Leaf Strategy Leaf is an agricultural plant, which must be cultivated, and it needs certain period to get matured. Therefore the ordering policy of leaf is very time consuming. They have to place the order very early of the time it is needed to arrive. Suppose they need 1000-ton leaf in the month of April 2008, they inform their supplier right now that is in the month of April 2007, so that they can cultivate the leaf and then deliver. In addition, it is to be mentioned that just after the arrival in the warehouse the leaf is not as ready as to be used for production. It goes under another certain period of time for maturation and then is under for production. But if we talk about the lead-time it will include only the days between order placements to arrival at warehouse. 5. SAFETY STOCK Usually one does not know precisely the number of units that will be demanded each day during the lead-time. The duration of lead-time may have unexplained or unexpected variation. Demand can be thought of a probabilistic variable with some expected amount of demand during a period of time and unexplained variations about the expected value. If inventory could be replenished one a moments notice there would be no reason to be concerned about demand uncertainty. Whenever inventory reached zero, stock would be held again. With some lead time between the placement of an order an its arrival, however there is a chance that demand will be greater than expected and loss will be incurred due to stockout. When stockout costs are high and demand is very unpredictable, the financial risk is sizable. Safety stock is a means of protection against this risk. Safety stock (SS) is established simply by raising the reorder level above the expected lead-time demand. For probabilistic demand during le ad-time, the reorder level is given by the following equation where represents the mean demand per unit of time.  RL= ( ÃÆ'Ãâ- LT) + SS Safety stock is the average amount one hand when replenishment orders arrive. Sometime demand during the lead-time is less than expected extra stock is on hand. Sometimes demand is greater than expected and some of the safety stock is used. 6. Methodology Step 1: Conducting a primary survey. Step 2: Preparing primary questionnaire Step 3: Modification of the questionnaire Open-ended questions: This type of questions found out the view of the decisions makers out for gathering information regarding the subject topic. Close-ended questions: These types of questions were designed to extract information which are related to the preparation of a realistic forecast: Step 4: Performing the case study and conducting the interview Step 5: Data processing and analysis 6.1 Demand Forecasting Strategy Demand manager receives the sales history of the previous 4/5 years. He observes the trend that every month undergoes. There are some seasonal impacts in the cigarette market. But overall the market is a stable one. Following the trend of previous 4/5 years and considering the marketing activities, the demand manager goes for a rolling forecast over the next 18 months. The term rolling here implies that the forecast is updated every month for the next 18 months. Stable Trend-up Trend-down Figure 2: Trends of Demand By this, the demand manager feels flexible enough to consider any new promotional activity or any assumption from the marketing department and any seasonal impact, which has not been included earlier. The main focus of forecasting is based on the trend. If the trend is decreasing the forecasted sales goes down and vice versa. 6.2. Findings Imported leaf stock: Year end 2008 imported leaf stock was 317 million Taka Average 2008 leaf stock was 334 million Taka (~ 4 months duration) Currently, they are following an inventory policy of maintaining a 90 day safety stock which varies in quantity and value terms over the year with fluctuation in demand. 7. ANALYSIS The assumptions presented in the chapter two have been considered applicable to develop the EOQ for the imported leaf. Considerations: Grade: AN30/104S Demand in Kg/Month: Annual Demand = 152000 Kg Holding Cost = 32 TK/ Kg Ordering Cost = 700 TK (Assumed) EOQ =ÃÆ'Ã ¢Ãâ¹Ã¢â¬ Ãâ¦Ã ¡ (2DS/H) = ÃÆ'Ã ¢Ãâ¹Ã¢â¬ Ãâ¦Ã ¡ ((2*152000*700)/32) =. 75Kgs Kgs 7.1 HOW MUCH TO ORDER The analysis shows that the company should order 2579 kg for the particular grade each time, a quality that should be result in 58.93 cycles per year. Actually, the equation derived doesnt result in actual lot size that must be ordered. This will help to manage lot size and inventory control. The current moves towards the inventory cost and quantities, stress the importance in reducing lot size. That means to reducing lot sizes is to reduce setup time and cost. When smaller lots are run, holding cost is reduced. The point is to understand the logic and where to apply it. The effect on order size resulting from reducing setup cost is shows in the following figure. When the setup cost is reduced, the total cost curve shifts from TC1 to TC2. Correspondingly, the EOQ is reduced from EOQ1 to EOQ2 and the maximum total cost is reduced from TC1min to TC2min. Figure 6: Effect of reduced set up cost on order size and total cost 7.2. Reorder level The order quantity and reorder level are interrelated. A large order quantity causes fewer replenishment cycles with fewer exposures to stockout, so the reorder level can be reduced, and vice versa. Theoretically, we would have to find simultaneous solutions to equations for Q and RL to find their normal values. The value of D, S and H are only estimates, and the value of the EOQ will be approximate whether or not an adjustment is made for the expected stockout cost. Consequently, as often as done, we disregard the interrelationship between Q and RL. We solve for the EOQ, ignoring its effect on stockout cost, and then we find the best reorder level for this value of Q. Assumptions: Highest Service Level Factor corresponding to 99.99% satisfaction level used though recommended maximum level is usually 98%; this results in a more than 50% higher safety stock ii) Safety Stock calculated using standard deviation of actual demand rather than variance between forecast and actual giving higher levels of safety buffer. iii) Lead time taken to be 4 months for all grades whereas actual lead time is considerably less providing greater safety stock to cover variation in demand during lead time. Calculation: RL = L + z Where, RL =Reorder Point in Units, =Average Demand Per Time Period, L = Lead Time,Z = No. of Standard Deviation for a Specified Service Level,= Standard Deviation of Usages during Lead Time Annual Demand =152000 kgs Average Demand/Per Month =12666.66 L= 4 Months Z = 99.99% = ÃÆ'Ã Ãâ Ã¢â¬â¢d = ÃÆ'Ã ¢Ãâ¹Ã¢â¬ Ãâ¦Ã ¡ (ÃÆ'Ã ¢Ãâ¹Ã¢â¬ Ã ¢Ã¢â ¬ÃÅ" (di-dÃÆ'Ã ¢Ãâ¹Ã¢â¬ Ã ¢Ã¢â ¬Ã¢â ¢) 2/12), in a range from i-1 to 12 =ÃÆ'Ã ¢Ãâ¹Ã¢â¬ Ãâ¦Ã ¡ (31066666.66/12) =1609.00 Therefore, = =1609* =3218 From the above calculation RL can be determined as follows: RL = 12666.66 * 4 + 4*3218 =50666.64 + 12872 =63538.64 This says that when the stock on hand gets down to 60610.26 kgs order should be placed. 7.3. Level of Safety Stock Safety stock= =4*3218 =12872 It results to a safety stock of 31 days, as the daily demand is 416.43 kgs. But theoretically it is applicable for the particular grade. Though the other grades do not involve so much variation in their demand, considering some logistic capabilities for the overall improved leaf the proposed safety stock is 50 days. This will allow for flexibility during roll out of new safety stock polling while guarding against unanticipated changes in sales and supply scenarios. The reason for proposing this amount of safety stock is to protect much against the uncertainty of demand. Because there may be a situation that for a sudden change in demands the system may not be flexible enough to meet the change from the calculated safety stock. This is due to demand forecasting that takes place over a long period and the order is placed for a particular month very early of the situation it experiences the change in its demand. So immediately it is not possible for the system to respond the sudden change in demand. For this, proper level of safety stock should be placed in a company for its smooth operation. Another fact is that the lead time from order placement to arrival at warehouse involves some events over which the proper control is not possible. The following section represents the impact of reduction of safety stock and then the analysis of lead time is shown. It is to be mentioned that the more the lead times the more the level of safety stock. Therefor e the lead time calculation is an important factor for the placement of safety stock. 7.4. BENEFITS CALCULATION GRADE: AN30/104S Annual consumption = 152000kgs 90 days safety stock = 38000kgs 50 days safety stock = 21111.11 Therefore, WC Reduction = (38000-21111.11)*165 =2.78 million Taka 7.5. OFFSHORE STOCK COST CALCULATION Reduction in safety stock = 16888.89 kgs This amount of excess stock will be held at supplier premises for a maximum additional period of 12 months. Holding cost at BATB @ 12% = 16888.89ÃÆ'Ãâ-135.11ÃÆ'Ãâ-12% =273823 Taka Holding cost at supplier @ 7.2% + Excess Duty =16888.89 ÃÆ'Ãâ- 135.11 ÃÆ'Ãâ- 7.2% ÃÆ'Ãâ- 1.22 =200439 Taka Therefore, Savings =73384 Taka 8. IMPACT OF REDUCED LEVEL OF SAFETY STOCK ON WC Proposed Safety Stock based on lead-time, variability in demand during 2006 and desired service level indicates a substantially lower requirement of safety stock even with very conservative assumptions Using 2007 volumes this would translate to reducing imported leaf stock from an average of 322.60 Million TK. to about 179.18 Million TK. Jan 08 Feb08 Mar 08 Apr 08 May 08 Jun 08 Aug08 9. LEAD TIME ANALYSIS It has been already mentioned that the more the lead time the more the safety stock. Lead time involves the total time from the order placement to arrival at warehouse Figure 7: Supply Lead Time We can develop a pie chart highlighting the time taken on a percentage basis by different events that take place from order placement to arrival at warehouse. Symbols Events Average % A TIME TAKEN BW ORD PLACE PRO INVOICE REC 14.75 7 B TIME TAKEN BW LC REQUIEST 10.93 5 C NO. OF DAYS SPENT B/W LC SHIPMENT DATE 38.90 19 D ARRIVAL IN CTG (ACTUAL SHIPMENT ETA CTG) 35.10 17 E DAYS REQD CTG TO ICD 6.05 3 F DAYS REQD ICD TO WAREHOUSE 8.58 4 Table 1: Lead Time Analysis The pie chart shows that a major part of the time from order placement to arrival at warehouse involves the events C and D over which the control cannot be held so easily. They involve some complex as well as time taking procedures. But in case of the rest of the events different action can be issued very effectively. Figure 8: Events placed on Warehouse (Percentage basis) In addition there are some recommendations for reducing the lead-time in the next chapter. 10. RECOMMENDATION As the analysis shows that the company can reduce the level of safety stock, the first phase of recommendation represents how it can be carried out and the later phase defines the steps, which should be proper monitored and controlled with a view to, maintain an optimized inventory management system. This will enable to obtain an effective safety stock level. Allowing Inventory Policy Exceptions for certain grades to satisfy requirements for blend changes and brain launches. Reviewing and improving the order tracking process as necessary. Monitoring orders, delivery performance and safety stock policy adhere continually. Gradually moving to safety stock of 2.5 months and then to 50 days, with 6 months duration difference. Holding the excess stock at the supplier premises. Locating the inventory at different points in the pipeline rather to hold much in the warehouses. The following steps should be performed in order to implement the recommend actions: Developing operational excellence in demand forecasting so that there will be fewer surprises. Cutting the lead-time to reduce the demand uncertainty during lead time. Reducing the supplier uncertainty. Supplier reliability can be increased by sharing the production plans with them, permitting them to make more realistic forecast. Improving the logistics capability by planning the infrastructure to meet demand, then implementing and controlling the physical flows of material and final goods from points of origin to points of use. 11. CONCLUSION It has been revealed that the traditional inventory management system needs some modification depending on the situation or the operating environment, while inventory is management by a company. The different inventory models provide a different set of capabilities and opportunities to exploit different competitive priorities. Some members of different industries and consulting firms have already started to criticize classical inventory models seem fashionable. But prior to the operating conditions different classical inventory models can be considered as the decision making tools that will enable a company to take its step under conflicting pressure. All the system needs is proper integration of operation and business. This will smooth the flow of information and thereby implementation of such models would be openhanded.