Globalization of China vs. United States Research Paper

Globalization of China vs. United States - Research Paper Example US Steel Corporation, established in the year 1901, is one of the biggest integrated domestically owned steel companies of US. The company’s customer base is diversified in global markets including Central Europe and Canada. It was declared as the 13th largest steel producing company in the world in the year 2010. The globalization of industries in US is expected to increase the profitability of the company in future due to growing demands in the emerging economies such as China. Baosteel, established in the year 1978, was declared as the 2nd largest steel producing company in the world in 2011 and has demonstrated excellent performance in recent years irrespective of slowdown in demand in the global market. From the financial statement analysis of the US Steel Corp. it can be said that US Steel’s production capacity exceeds its total sales leading to unsold inventory. Steel sector is already a cyclical sector in the sense that the demand for the steel products vary in every quarter. Globalization in China in expected to help the company in diversifying its products into other economies. In addition, the company’s mass production will help it to reach economies of scale in future that will further help to export steel at cheaper rates making US domestic steel industry more competitive. The study aims to analyze the financial statements of the two companies and provide a comparative analysis by highlighting key areas of concern, impact of globalization in US and China and recommend steps that should be taken to ensure profitability in competitive environment. Introduction The steel industry is one of the most important industries of the economy and is also considered as an important indicator of economy. It plays a major in the development of overall economy and infrastructure. The application of steel is used in many industries such as construction, automobiles, machinery, transportation, and many others. The global steel output was over 15 47 million tons for the year ending 2012. The most important characteristics of the steel industry are that it is cyclical and highly fragmented. The steel industry has experienced superior growth during the last two decades but after the global financial crisis, the industry suffered sluggishness in demand. In order to manage operating risk, many companies have diversified their operations in emerging economies where the demand of steel was not affected by global recession. Company Analysis Baosteel Group Corporation Baosteel Group Corporation (also known as Baosteel) is one of the iron and steel largest company of China. It was established in the year 1978 and its head quarter is in Shanghai, China. It is the world’s 2nd largest steel producer following ArcelorMittal in terms of aggregate output. In the year 2012, the company was awarded 197th rank in Fortunes Global 500 for ninth consecutive year. It was also rated by Fitch, S&P, and Moody’s as A3, A, and A- respect ively in the same year. Baosteel was also identified one of the most admired company in the world. The company primarily operates in the iron and steel industry and produces high quality steel that adds value to other industries. The main products of the company are stainless steel, special steel and carbon steel. The company reported approximately 44.2 million tons that helped it to earn over RMB 18.10 billion. Hence, it was ranked as the

In what ways is Orwell's Keep the Aspidistra Flying a critique of Essay

In what ways is Orwell's Keep the Aspidistra Flying a critique of British values between the wars - Essay Example Even from above you could see that his shoes needed resoling.† (Orwell, 2002) This makes it obvious to the reader that Gordon is a man who is down on his luck. The book can be interpreted in terms of reflecting on the values of the British society especially between the war period. Unfortunately Gordon has some very unattractive qualities which make it difficult for the reader to identify with him. He is a man obsessed with himself and wallowing in self-pity. He has a lot of intellectual arrogance and conceit. He professes to be a budding poet although his book has only sold about one hundred and fifty three copies. He firmly believes that it is only the lack of money which prevents him from turning out a masterpiece. In his own words â€Å"Snooty, refined books on safe painters and safe poets by those moneyed young beasts who glide so gracefully from Eton to Cambridge and from Cambridge to the literary reviews.† (Orwell, 2002) Here Gordon’s contempt for writers w ho do not dare to take any kind of risk but prefer to stick to safe topics is obvious. At the same time a tinge of envy is there in his words. He considers that their moneyed background offers these writers a blanket of security which is conspicuously lacking in his life. Actually through Gordon’s monologue we catch a glimpse of British Society during the post-war period. The British middle class values are also high-lighted in this book. It was a very class conscious society at that time. The British middle class had certain rigid standards by which they lived their lives. Thus at that time you were either a gentleman or an aristocrat. If you belonged to neither of these two categories then you were a member of the lower classes and you could expect to be treated with a certain degree of contempt. Actually here the author has tried to bring to the fore-front the false sense of values which governed the British Society in those days. So we see that although Gordon Comstock ha d no money he was still desperate to keep up appearances. For example in this passage, â€Å"Gordon walked homeward against the rattling wind, which blew his hair backward and gave him more of a 'good' forehead than ever. His manner conveyed to the passers-by--at least, he hoped it did--that if he wore no overcoat it was from pure caprice. His overcoat was up the spout for fifteen shillings, as a matter of fact.† (Orwell, 2002) Here Gordon’s behavior is typical of the class to which he belonged. He did not possess an overcoat and at the same time he was trying to convey the impression that this was just whimsical behavior on his part. There were one or two bright spots in Gordon’s life. One was his girlfriend Rosemary who loved him but refused to sleep with him. The other was his rich friend Philip Ravelston who tried to help him by publishing one of his books through his publishing contacts. Gordon formed the impression that his lack of money was the main reaso n behind Rosemary’s resistance to his advances. Although Gorden claimed to disdain money, at the same time he was obsessed with it. This is apparent from this passage. â€Å"It wasn’t merely the lack of money. It was rather that, having no money, they still lived mentally in the money-world--the world in which money is virtue and poverty is crime.† (Orwell, 2002) Gordon had little or no time for his relatives. Their genteel poverty and their helplessness was a source of

Self Leadership Another Way To Achieve Performance Education Essay

Self Leadership Another Way To Achieve Performance Education Essay Abstract In the quest for employee performance organizations seek novel leadership strategies. Self leadership behavioral-focused, natural-reward and constructive-thought strategies provide a sound solution (Houghton, 2006). Research across diverse settings has shown that the practices of effective self-leadership strategies can lead to many benefits including enhanced motivation, positive self-efficacy perception, and improved employee performance (Bandura, 1991). Rooted in social learning theory cognitive evaluation theory, self-leadership is more comprehensive theory of self influence than self-control and self-management theories. A conceptual self leadership frame work for employee performance is also suggested in this paper for organizational application. Keywords: Self-Leadership, Self-leadership Strategies, Self efficacy/Personal mastery, Motivation, Employee performance. Introduction The most influential part in our life that has the ability to support growth than anyone else is our own self. This paper is not about the leadership of others, rather something more fundamental and more powerful i.e. self-leadership. Simply stated leadership is an art of mobilizing others for shared aspirations (Bass, 1995). Leadership is the behavior of an individual when he is directing the activities of a group towards a shared goal (Coons, 1957). Leadership requires using power to influence the thoughts and actions of other people (Zalenik, 1992). Leadership is about articulating visions, embodying values, and creating the environment within which things can be accomplished (Engle, 1986). Leadership is a social process in which one individual influences the behavior of others without the use of threat and violence (Buchannan, 1997). The simplest definition of leadership perhaps is a process of influence between a leader and follower (Hollander, 1978). There are many definitions or descriptions of leadership based on equally vast and differing viewpoints. So in the light of above, Self-Leadership can be described as a process of self influence to navigate own-self for achieving desired outcome (Manz, 1992). In fact, as the opening lines suggest, our greatest latent source of leadership and influence comes not from an external  leader, but from within ourselves. Self Leadership Self-leadership theory is based on self-influence, self-management and self control theories that has recently gained significant popularity and inspiring potential for application in modern organizations. Simply stated, self-leadership is a process through which people influence themselves to achieve the self-direction and self-motivation required to behave and perform in desirable ways (Manz Neck, 1999). Self-leadership is rooted in Social Learning Theory (Bandura, 1977) and Social Cognitive Theory (Bandura, 1986). Social learning theory explains that how people can influence their own cognition, motivation, and behavior (Yun, 2006). On the other side, social cognitive theory explains that there is a continuous interaction between people and their environment (Davidson, 2000) and behavioral outcomes are means of information and motivation (Bandura, 1986). Therefore, how self-leaders think and behave according to cognitive, motivational, and behavioral strategies (Yun, 2006) is explained by Self-Leadership theory. This is a process of self-influence which is facilitated through the use of both behavioral and cognitive strategies. Self-leadership has three distinctive strategies: behavior-focused strategies, natural reward strategies, and constructive thought pattern strategies (Houghton, 2006). Behavior-focused strategies comprises on self goal setting, self observation, self-reward, self punishment and self cueing. These strategies are intended to strengthen positive, desirable behaviors (e.g. Job performance, Team Performance). Behavior-focused strategies are particularly useful in managing behavior related for achieving performance including its unpleasant aspects. Natural-reward strategies focus on tasks that are intrinsically motivating. These strategies can also include the focusing of attention on more satisfying or rewarding aspects of a given job or task rather than on the unpleasant or difficult aspects. Constructive-thought pattern strategies focus on how thinking functional patterns are created and maintained. These strategies include identification and replacement of false self assumptions and irrational beliefs, creating of mental imagery for future successful performance, and positive self talks. Combining all these strategies yields an impressive package of self-influence kit that has a huge potential for organizational application in todays rapidly changing business environment. Self-leadership is a more comprehensive theory of self-influence than both self-control and self-management (Manz, 1986). Self-leadership combines the behavioral strategies suggested by self-management and self-control with cognitive strategies based on the concepts of intrinsic motivation and constructive thinking patterns. Self-leadership is more of a broader concept than both the theories of self-control and self-management. Self-management highlight extrinsic rewards (e.g. monetary rewards, praise, recognition, and self-reinforcement based on external stimuli). But self-leadership goes beyond this viewpoint and focuses on natural rewards. Natural rewards imply that performance of the task or activity is a reward in itself (Manz Neck, 1999). In summary, conceptualization of natural rewards in self-leadership theory is mainly based on the intrinsic motivation literature. Motivation, according to one definition, is an attribute that moves us to do or not to do something (Garrison, Broussard and Gredler, 2004).Motivation refers to the motives underlying behavior (Guay et al., 2010). Motivation can also be defined as voluntary uses of high-level self-regulated learning strategies, such as paying attention, connection, planning and monitoring (Turner, 1995). However Hornby (2000) states that motivation is an incentive to act or move. Research tells that there are two types of motivation, extrinsic and intrinsic. Extrinsic motivation is the result of externally administered motivators including pay, compensation and benefits, material possessions, monetary gains and positive evaluation by others. Intrinsic motivation is that type of motivation that is activated by personal enjoyment, interest, or pleasure (Deci et al, 1999). Intrinsic motivation is derived from within a person and positively effects behavior and performance (Ryan Deci, 2000). Performance refers to the effectiveness of individual behaviors that contributes to organizational objectives (McCloy, Campbell Cudeck, 1994). However Motowidlo (1997) argues that performance is all about behaviors with an evaluative aspect. Self-leadership theory encompasses both intrinsic motivation literature and cognitive evaluation theory (Deci Ryan, 1985).Cognitive evaluation theory advocates that intrinsic motivation is driven by the need for competence (i.e. to exercise and extend ones capabilities) and the need for self-determination (i.e. the need to feel free from pressures such as contingent rewards). Cognitive evaluation theory argued that individuals will try to seek feelings of competence and self-determination by overcoming challenges (deCharms, 1968). Support for the efficacy of intrinsic motivation has been demonstrated in numerous empirical studies (e.g., Deci, Connell, Ryan, 1989; Harackiewicz, 1979; Zhou, 1998). Feelings of competence and self-control (i.e.self-determination) are central part of natural rewards provided by self-leadership theory (Manz Neck, 1999). Through self leadership strategies, activities and tasks can be chosen, structured, or perceived in ways that lead to increased feelings of competence self-determination that in turns enhance task performance. Self leadership theory is very much complementary with self-determination theory (Deci, 1972). Although natural reward strategies are generally effective, self-reward strategies utilizing external rewards may also be helpful (in those situations where natural or intrinsic rewards are not needed) to increase (individual or team) performance (Manz Neck, 1999). At the heart of social cognitive theory lies the concept of Self-efficacy or personal mastery (Bandura, 1986). Self-efficacy talks about persons beliefs regarding his/her capabilities to achieve a specific task (Bandura, 1991). As per cognitive evaluation theory need for competence and self-determinations (Deci Ryan, 1985) leads to more difficult goals selection and increased perceptions of self-efficacy which in turn, leads to higher future performance (Bandura, 1991). Self-leadership theory incorporates all above components of cognitive evaluation theory and social cognitive theory. In short self-leadership strategies mentioned above enhance self-efficacy perceptions, which lead to higher levels of performance (Manz Neck, 1999). Empirical evidence supports the effectiveness of self-leadership strategies in increasing self-efficacy perceptions and performance. More recently, role of self-efficacy as a mediator of the relationship between self-leadership strategies and performance has also been examined indicating significant relationships (Prussia et al., 1998). Positive Perception of self Efficacy or Personal Mastery SUCCESSFUL PERFORMANCE Based on the literature above it can be summarized here that Self-leadership is a process of self-influence based on self-control, self management and self regulation theories. It is also rooted in motivation theories, Social learning theory and cognitive evaluation theory.  Research across diverse settings, from the educational domain to the airline industry, has shown that the practices of effective self-leadership strategies can lead to many benefits including high motivation, self-efficacy, and enhanced employee performance (Bandura, 1991).  As mentioned Self leadership strategies include behavioral-focused, natural-reward and constructive-thought pattern strategies. Taken together these core self-leadership strategies and aligning them to motivation, self efficacy and performance following conceptual frame work (figure.1) is suggested aiming at to achieve successful performance in an organization. This suggested conceptual frame work is modified from the basic model of Self leadership and personal effectiveness proposed by Manz Neck (2007). Figure.1 In the light of the self leadership literature the figure.1 above is suggesting a conceptual framework which implies that applying self-leadership strategies and their components through effective training programs in organization can help in developing self-led employees who can achieve goals like individual, team based or organizational performance through personal mastery. Successful performance leads to positive perception of self efficacy which creates a positive self sufficient upward spiral effect for new successful performance. As per limitation in this paper identifying individuals team based self leadership and team member work role performance was not studied which creates room for future research. Effective self-leadership strategies do not stress independent employee behaviors by ignoring teams or organization context. Rather, effective self-leadership strategies encourage a coordinated effort by individuals to seek their own personal identity and mode of contribution as part of a group, teams or organization that produces synergistic performance (Konradt; Andreßen; Ellwart, 2009). Furthermore, self-leaders are less likely to be resistant to organizational change (Neck, 1996) which is important for any learning organization as it responds and adapt to changing environment. As organizations continue to redesign and adopt structures that need a greater dependence on individual initiative, the popularity of self-leadership concepts is likely to remain strong. Finally, self-leadership behavior shaping strategies provide considerable assurance for taking the quest for employee performance to the next higher level. Indeed, effectively trained self-led employees, both behaviorally and cognitively, may offer the best blueprint for achieving employee and organizational performance in the 21st century.

Analysis of Tess of the DUrbervilles by Thomas Hardy Essay -- Thomas

Analysis of Tess of the D'Urbervilles by Thomas Hardy The depth of artistic unity found in Thomas Hardy's Tess of the D'Urbervilles pervades every chapter of the novel. No one chapter is less important than another because each is essential in order to tell the tragic tale of Tess Durbeyfield. There is never an instance in Hardy's prose that suggests frill or excess. Themes of the Industrial Revolution in England, the status of women during Victorian England, Christianity vs. Paganism, matters of nobility, and the role that fatalism plays in life weave together with various symbols to create an amazing flow to his novel. At the beginning of chapter thirty-one, Joan Durbeyfield has just sent a letter with her advice to Tess. She tells Tess to keep her past from Angel a secret. Tess' mother is a practical woman who knows that Angel will be like most men and will reject Tess once he discovers the truth. It is important that Joan makes an appearance in this chapter because Tess' parents' influence on their daughter is integral to the plot of the novel from the beginning. In fact, a line can be traced from Tess to her parents to the effect of the Industrial Revolution on the peasantry of England. At the beginning of the novel, Tess offers to go Casterbridge to deliver the beehives that her father was supposed to deliver. John Durbeyfield is unable to make this delivery because he has yet again inebriated after having made a visit to Rolliver's Inn. Tess' father is just one example of the many victims of the Industrial Revolution. He and Joan are "representatives of the disaffected and drunken villagers whose houses will soon fall to larger farms mass-producing crops for mass consumption."[1]The villagers... ...By Thomas Hardy. N.p.: Unversity of Michigan, n.d. 417-427. Shaw, Bernard. Man and Superman. Cambridge, Mass.: The University Press, 1903; Bartleby.com, 1999. www.bartleby.com/157/. Tess of the D'Urbervilles. 37th ed. New York : Penguin Group, 1980. Tess of the D'urbervilles/ HARDY. Masterplots. N.p.: n.p., n.d. Thomas Hardy." Critical Survey of Long Fiction. N.p.: n.p., n.d. --------------------------------------------------------------------- [1] Bishnupriya Ghosh, "Critical Evaluation" Tess of the D'Urbervilles/HARDY, Masterplots [2] Charles E. May, "Thomas Hardy," Critical Survey of Long Fiction [3] May 1509 [4] George Bernard Shaw, Man and Superman, August 1999, November 10, 2003, http://www.bartleby.com/157/100.html [5] Donald Hall, Afterword on Tess of the D'urbervilles, Tess of the D'urbervilles, Peguin 1980 ed.

Galileo Galilei Essay

Galileo Galilei is an Italian astronomer, physicist, philosopher, and mathematician. He ranks with Archimedes, Newton, and Einstein as one of the greatest scientists of all time. His discoveries, made with the crudest of equipment, were brilliant examples of scientific deduction. Galileo’s studies of natural laws laid the groundwork for the experimental scientists who followed him. Galileo was born at Pisa, the son of a musician who planned a medical career for him. He began studying medicine at the University of Pisa. According to legend, Galileo made his first major discovery at this time. He is said to have used his pulse to time the swinging of a suspended lamp in a cathedral; he found that, no matter how far the lamp swung, the timing has always the same (Drake, 2002). In later life Galileo established the fact that a free-swinging object, or pendulum, moves in uniform time intervals. Pendulum clocks are a common application of this principle. Thesis Statement: This paper scrutinizes the life and contributions of Galileo Galilei. II. Discussion Galileo constructed the first telescope used for astronomical observations; the observations he made supported Copernicus’ theory that the sun is the center of the solar system. In physics, Galileo discovered the principles of motion followed by swinging pendulums, falling bodies, and flying projectiles. Galileo used his heartbeat to time the period of a pendulum. He realized that a pendulum could be used as a standard of time for a clock (Rose 2004). Pendulum clocks are still sold today, more than three hundred years after their invention. Moreover, changing from the study of medicine to that mathematics and natural science, Galileo conducted experiments on gravity that brought him to public attention. In 1589, he became a lecturer on mathematics at the University of Pisa, and began his studies of falling bodies. According to legend, as mentioned earlier, he dropped objects from the Leaning Tower of Pisa to prove his theory that bodies fall at the same speed and with the same acceleration regardless of their weight and size. He also demonstrated that projectiles follow a parabolic path. These discoveries were contrary to the teachings of the ancient Greek scientist and philosopher Aristotle, many of whose ideas had for centuries been accepted without question. Galileo aroused such opposition that in 1951 he was forced to resign from the university (Rose 2004). The next year Galileo obtained a professorship in mathematics at the University of Padua, where he remained for 18 years. This was a period of successful research, acclaim, and prosperity for Galileo. In 1609, Galileo received news of the invention, in Flanders, of a device that made a distant objects appear larger. He immediately set out to build such a device for himself. The final result was a 32-power refracting telescope, with which he made series of major discoveries (Poupard 2005). He found by observation that the moon shone only from reflected light; that the Milky Way was formed of a multitude of stars; and that the planet Jupiter was circled by several moons. His discoveries caused great excitement among astronomers; he was besieged with orders for telescopes. In 1610, Galileo left Padua for Florence to become official mathematician and philosopher to Grand Duke Cosimo II de’ Medici. By the end of the year his telescopic discoveries included the rings of Saturn, the phases of Venus, and sun spots. His observations clearly confirmed the theory of the Polish astronomer Copernicus that the earth and planets revolved around the sun. The church, however, had accepted as conforming the Bible the earlier idea of the planets and sun revolving around the stationary earth. When Galileo visited Rome in 1611 he was given a welcome by Church officials befitting one of the greatest astronomers of all time, as he was then acknowledged to be. This gave him the courage to announce his support of the Copernican theory of the solar system. Controversy flared. Although warned by the Church to avoid religious interpretation of his theory, Galileo attempted to prove it by quoting the Bible. He was told by the Church in 1616 to abandon the Copernican theory because it contradicted the Bible. In 1632, however, he published Dialogue on the Two Chief Systems of the World, in which he revived his argument in favor of the Copernican system. Galileo was then summoned to appear before the Inquisition and forced to renounce the view that the earth moves around the sun (Poupard, 2005). Although sentenced to imprisonment, he was permitted to retire to his home, where he continued his studies. III. Conclusion As a conclusion, Galileo Galilei made great contributions to our society through his invention and discoveries. His works are highly acclaimed and made significant impact in the fields of mathematics, physics, astronomy, and in sciences. Reference: Drake, Stillman (2003). Cause, Experiment, and Science: a Galilean Dialogue (University of Chicago) Poupard, Paul (2005. Galileo at work: Toward a Resolution of 350 Years of Debate, 1633-1983 (Duquesne University). Rose, Sidney (2004). Galileo and the Magic Numbers (Little, Brown).

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The changing dynamics of Supply Chain Inventory Management - Free Essay Example

Sample details Pages: 6 Words: 1852 Downloads: 8 Date added: 2017/06/26 Category Statistics Essay Type Cause and effect essay Did you like this example? Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Another definition is provided by the APICS Dictionary when it defines SCM as the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally. Supply chain management must address the following problems: Distribution Network Configuration: number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers. Distribu tion Strategy: questions of operating control (centralized, decentralized or shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking, DSD (direct store delivery), closed loop shipping; mode of transportation, e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal transport, including TOFC (trailer on flatcar) and COFC (container on flatcar); ocean freight; airfreight; replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL). Trade-Offs in Logistical Activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a product is ordered to reduce transportation costs, there will be an increase in inventory holding costs which may increase total logistics costs. It is therefore imperative to take a systems approach when planning logistical activities. These trade-offs are key to developing the most efficient and effective Logistics and SCM strategy. Information: Integration of processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, potential collaboration, etc. Inventory Management: Quantity and location of inventory, including raw materials, work-in-progress (WIP) and finished goods. Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain. Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional. Inventory management is primarily about specifying the size and placement of stocke d goods. Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods. The scope of inventory management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting. Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment. It involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. Systems and pro cesses that identify inventory requirements, set targets, provide replenishment techniques and report actual and projected inventory status. It handles all functions related to the tracking and management of material. This would include the monitoring of material moved into and out of stockroom locations and the reconciling of the inventory balances. It may also include ABC analysis, lot tracking, cycle counting support etc. Management of the inventories, with the primary objective of determining/controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling costs. 1.2 Rationale to the study Most of the researches in supply chain areas are concerned about optimizing the supply chain in terms of its efficiency and competence in the product market, but only limited studies are done considering the inventory management in supply chains. Effective inventory management in a supply chain can play a vital role in cutting inventory holding costs across the different stages of the supply chain, thus emphasizing the need of a general model for managing inventories within a supply chain. Baganha Cohen (1996) developed a stabilizing model for effective inventory management for supply chains. Supply chain materials management methods could be made complex considering a multi product scenario and discontinuous supply chains. So the models developed should have room for all kinds of supply chain variability. Lee Billington (1993) developed a model for inventory management considering decentralized supply chains. 1.3 Overview/Significance of the are under study Inventory management for supply chains could be effective only when the information flow from top to bottom of a supply chain is streamlined. Cachon Fisher (2000) developed a value shared information model and performed a comparative study with the conventional data sharing strategies and end ed up with the proposed model performing better, reducing inventory holding expenses. Strategic plans for the effective 4 distribution of information are essential for supplying goods at the customer expected rate. Mutual sharing and analyzing of the information and standards between the supplier and customer at every stage of the supply chain is crucial and it also nurtures customer supplier relationships. Thus incorporating information flow standards in inventory management in a supply chain will definitely result in increased returns. Supply chains can be streamlined in such a way that they are continuous and follow the chain of activities at any given time. But there are certain cases where the chains appear to be in a broken or discontinuous form due to lack of communication flow and other practical factors that limit them from following the supply chain policy. So in such cases it is extremely difficult to evaluate the inventory management strategies. Materials stored at va rious locations of a supply chain can have divergent effects on the cost and service levels of the chain (Lee Billington, 1993). So managing inventories in such supply chains requires special focus and considerations at all levels. Inventory exist s in the supply chain because of a mismatch between supply and demand. This mismatch is intentional at a steel manufacturer where it is economical to manufacture in large lots that are then stored for future sales. The mismatch is also intentional at a retail store where inventory is held in anticipation of future demand. An important role that inventory plays in the supply chain is to increase the amount of demand that can be satisfied by having product ready and available when the customer wants it. Another significant role inventory plays is to reduce cost by exploiting any economics of scale that may exist during both production and distribution. Inventory is spread throughout the supply chain from raw materials to work in proce ss to finished goods those suppliers, manufacturers, distributors, and retailers hold. Inventory is a major source of cost in a supply chain and it has a huge impact on responsiveness. If we think of the responsiveness spectrum, the location and quantity of inventory can move the supply chain from one end of the spectrum to the other. For example, an apparel supply chain with high inventory levels at the retail stage has a high level of responsiveness because a customer can walk into a store and walk out with the shirt they were looking for. In contrast, an apparel supply chain with little inventory would be very unresponsive. A customer wanting a shirt would have to order it and wait several weeks or even months for it to be manufactured, depending on how little inventory existed in the supply chain. Inventory also has a significant impact on the material flow time in a supply chain. Material flow time is the time that elapses between the points at which material enters the supp ly chain to the point at which it exist. Another important area where inventory has a significant impact is throughput. For a supply chain, throughput is the rate at which sales occur. If inventory is represented by I, flow time by T, and throughput by D, the thee can be related using Littles law as follows: I = DT For example, if the flow time of an auto assembly process is ten hours and the throughput is 60 units an hour, Littles Law tells us that the inventory is 60 x 10 = 600 units. If we were able to reduce inventory to 300 units while holding throughput constant, we would reduce our flow time to five hours (300/60). We note that in this relationship, inventory and throughput must have consistent units. The logical conclusion here is that inventory and flow time are synonymous in a supply chain. managers should use actions that lower the amount of inventory needed without increasing cost or reducing responsiveness, because reduces flow time can be a significant advanta ge in a supply chain. 1.4 Historical Developments In the 1980s, the term Supply Chain Management (SCM) was developed[6] to express the need to integrate the key business processes, from end user through original suppliers. Original suppliers being those that provide products, services and information that add value for customers and other stakeholders. The basic idea behind the SCM is that companies and corporations involve themselves in a supply chain by exchanging information regarding market fluctuations and production capabilities. If all relevant information is accessible to any relevant company, every company in the supply chain has the possibility to and can seek to help optimizing the entire supply chain rather than sub optimize based on a local interest. This will lead to better planned overall production and distribution which can cut costs and give a more attractive final product leading to better sales and better overall results for the companies involved. In corporating SCM successfully leads to a new kind of competition on the global market where competition is no longer of the company versus company form but rather takes on a supply chain versus supply chain form. The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory and labor. In theory, a supply chain seeks to match demand with supply and do so with the minimal inventory. Various aspects of optimizing the supply chain include liaising with suppliers to eliminate bottlenecks; sourcing strategically to strike a balance between lowest material cost and transportation, implementing JIT (Just In Time) techniques to optimize manufacturing flow; maintaining the right mix and location of factories and warehouses to serve customer markets, and using location/allocation, vehicle routing analysis, dynamic programming and, of course, traditional logistics optimization to maximize the efficiency of the distribution side. There is often confusion over the terms supply chain and logistics. It is now generally accepted that the term Logistics applies to activities within one company/organization involving distribution of product whereas the term supply chain also encompasses manufacturing and procurement and therefore has a much broader focus as it involves multiple enterprises, including suppliers, manufacturers and retailers, working together to meet a customer need for a product or service. Don’t waste time! Our writers will create an original "The changing dynamics of Supply Chain Inventory Management" essay for you Create order