The Effects Of Oil Spill On The Niger River Delta - 813 Words

Medina-Bellver, J. I. Marà ­n, P. Delgado, A. Rodrà ­guez-Sà ¡nchez, A. Reyes, E. Ramos, J. L. and Marquà ©s, S. (2005). Evidence for in situ crude oil biodegradation after the Prestige oil spill. Environmental Microbiology. 7(6): 773–779. Mendelsohn, I. A., Hester, M. W., Sasser, C. and. Fishel, M. (1990). The effect of Louisiana crude oil discharge from a pipeline break on a vegetation of a southeast Louisiana brackish marsh. Oil chemical Pollution. 7:1-15. Moffat, D. and Linden, O. (1995). Perception and Reality: Assessing Priorities for Sustainable Development in the Niger River Delta. Ambio. 24 (7-8): 527 – 532. Moneke, A. and Nwangwu, C. (2011). Studies on the bioutilization of some petroleum hydrocarbons by single and mixed cultures of some bacterial species. African Journal of Microbiology Research. 5 (12): 1457-1466. Nwachukwu, S. C. U. (2001). Bioremediation of sterile agricultural soils polluted with crude petroleum by application of the soil bacterium, Pseudomonas putida with inorganic nutrient supplementations. Curr Microbiol. 42(2):231-236. Nweke, C.O., Okpokwasili, G.C. (2003). Drilling fluid base oil biodegradation potential of a soil Staphylococcus species. African Journal of Biotechnology. 2: 293 – 295. Obire, O. (1990). Bacterial Degradation of three Different crude oils in Nigeria. Nig. J. Bot. 1:81-90. Obire, O. (1993). The Suitability of Various Nigerian Petroleum Fractions as Substrate for BacterialGrowth. Discov. Innov. 9: 25-32. Obire, O. andShow MoreRelatedShell Petroleum Discovery Of Nigeria Essay1479 Words   |  6 Pages In 1956, Shell Petroleum discovered oil in commercial quantity in Nigeria. Within a decade, oil exploration speedily replaced agriculture as the mainstay of the country’s economy. 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Economic Policy and Practice Free Essays

Economic Policies And Practices ECO2072 / Professor Gordon 4/5/2013 Assignment Due Date – 4/3/2013 Economic Policies And Practices Understanding the foundation for which our economy and society as a whole is built upon, the need for a controlled and managed monetary system to function effectively in order to facilitate trade and stabilize the flow within our economy is a must. To facilitate this need the federal government implements tools for analyzing the economy in order to regulate and control, and decisions are made based on the inputs and observations made to stabilize and enable the money to grow and retract as required within our economic system. Again, based on the aforementioned, the phrase â€Å"money makes the world go around† therefore can be attributed to the controlled systems, policies and/or a networks of our federal government for which are governed to enhance and manage both the levels of and effects of our financial monetary system. We will write a custom essay sample on Economic Policy and Practice or any similar topic only for you Order Now As we proceed, we will attempt to explain various government policy changes or unplanned events which can and may occur, and the resulting economic events or activity that will be impacted within our economy and the effects it has upon and within our economy. Implemented Budget Plan Resulting In Increases In Debt And No Plan For Problems As we look at our Federal Governments role in execution and control of our nation’s budget and the current budget deficit we can only pray that those in charge of the decisions utilize the tools available to them to manage and soften the blow to the economy as the deficit grows. Where in the case our government employs a budget plan over several fiscal years and results wherein our economy sustains significant increases in the nation’s debt and displays no signs of relief nor presents no plans to deal with the problems, several outcomes would be likely in the economy. Mankiw, 2009, Ch. 32, P. 706 describes one effect being where government spending exceeds government revenue thus representing negative public saving, therefore reducing national savings, thus reducing the supply of loanable funds, Increasing interest rates, and crowds out investment. Amadeo, 2013 shares additional effects of this scenario wherein the deficit adds to a country’s debt each year and as the debt increases and the interest on the debt must be paid, it increases spending while adding no benefit to the economy. If the interest payments continue to rise, it can begin to create a drag on the economy’s growth. Mankiw, 2009, Ch. 32, P. 706 states additional effects in that when budget deficits raise interest rates, both domestic as well as foreign behaviors cause U. S. net capital outflow to fall. Therefore, in an open economy, our government’s budget deficit raises the economy’s real interest rates, thus crowding out domestic investment, and causing the currency to appreciate, consequently pushing the trade balance toward deficit. Enactment Of New Tariffs And Quotas On All Imports The economy uses a model of aggregate demand and aggregate supply as a means to analyze the economic fluctuations of supply and demand. This model depicts both the overall price levels in the economy and the overall quantity of goods and services produced in the economy. If in fact the Federal Government were to enact new tariffs and quotas on all imports, the economy would indeed experience effects from this activity. Mankiw, 2009, Ch. 33, P. 725-726 describes the model of aggregate demand and supply being what most economist use to explain short-run fluctuations in economic activity around the long-run trend. The aggregate demand curve displays the quantity of goods and services for which households, firms, the government, and customers abroad want to buy at each price level. The aggregate supply curve shows the quantity of goods and services that firms choose to produce and sell at each price level. The impact the economy would incur in the case of tariffs enacted being taxes imposed on imported goods is the increase of the price of the goods in the domestic market, therefore domestic producers benefit due to they receive higher prices, the government benefits through the collection of tax revenues thus resulting in less goods produced and the consumer pays higher prices (Investopedia, 2013). In the case of quotas and their effect on the economy, we find that quotas are numerical limits which are imposed on imported goods and in such a case of enactment consumers are truly harmed by the quotas while domestic and foreign producers will benefit once again by receiving higher prices for goods and services (Investopedia, 2013). Loss Of Confidence In Leadership In Ability To Manage And Create Jobs The Federal government is the entity that steps in when our economy incurs unhealthy conditions within its business cycle. It is presumed that our government has tools to detect and analyze our economy to understand those events that have the potential to alter the economy’s equilibrium. With respect to the aforementioned, problems arise when the general public loses confidence in the leadership and their ability to manage the economy to include job creation. Mankiw, 2009, Ch. 33, P. 741 shares, that in the scenario of lack of confidence we find that consumers again alter their plans for the future cutting back on purchases and spending. The effect of this cutback impacts the aggregate demand curve as well as the aggregate supply curve thus impacting either the short-run equilibrium and/or the long-run equilibrium. The consequences result in falling incomes and rising unemployment due to reduction of output mirroring the shift in aggregate demand responding to lower sales and production. Amadeo, 2013 states; â€Å"consumers who drive 70% of the economy won’t spend if they don’t believe the future will be safe and secure. Therefore, the underlying role of the government is to create confidence, powering the economic growth needed to create jobs†. Decrease Taxes In Effort To Stimulate The Economy Another tool within our government and its fiscal policy to regulate and control economic growth is the taxation level. Some claim that, tax rate cuts can lead to increased economic growth, and wealth, while others claim that by reducing taxes correlates to the benefiting of the wealthy due to they pay the most taxes already. Our government possesses the powers to tax which in turn gives it greater control over its revenues. Mankiw, 2009, Ch. 34, P. 773 shares, that when our government reduces personal income taxes, it increases the take-home pay of consumers. These households will save some of this additional income, and will also spend some of it on goods and services. Because reducing taxes increases consumer spending thus stimulating the economy, the tax cut shifts the aggregate-demand curve to the right. Conversely, a tax increase represses consumer spending and shifts the aggregate-demand curve to the left. The greater question lies in ‘what is the impact in our economy of a tax reduction for those making over $250,000’? Amadeo, 2013 shares that, the government considers those families that earn more than $250,000 yearly are wealthy and therefore should pay more taxes due to their ability to afford it. Amadeo, 2013 continues by stating that, economist say they do not spend these tax cuts, but save and invest them and therefore tax cuts for the wealth do not stimulate the economy. Investment Level’s Decrease Due To Lack Of Confidence In Economy The economy revolves around the ability of consumers to invest their moneys in goods and services or deposit ones excess money into interest bearing savings accounts wherein which the financial institutions would use the funds to make loans to consumers for the purpose of investing in personal interests. The ability to invest is crucial to the long-run of our economy’s success and the functions of aggregate demand and supply and when these levels of investment decrease due to a lack of confidence in the economy several consequences begin to unfold in the economy. Mankiw, 2009, Ch. 33, P. 41 shares that, during such an event many people lose confidence in the future and alter their plans, therefore households cut back on their spending and refrain from major purchases, and businesses retract from the purchases of new equipment. AmosWeb, 2013 states; â€Å"the confidence that consumers have in the economy affects their willingness to undertake consumption expenditures†. A ny change in the confidence of consumers wherein by changing consumption expenditures, will induce changes in the economy’s aggregate demand therefore causing a leftward shift of the demand curve. Interest Rates Kept Artificially Low By Fed’s For Several Years The economy revolves around the interest rates on the many investments of the consumers and plays a crucial part in the spending on goods and services. The impact on the economy can be said to be two fold in the event that interest rates are kept artificially low by the Federal Reserve over a lengthy period of time. Mankiw, 2009, Ch. 33, P. 728 states that, interest rates affect spending on goods and services, therefore a lower interest rate makes borrowing less expensive and it encourages businesses to borrow to invest in operations and equipment as well as it encourages consumers to borrow to invest in self and home. This said, lower interest rates increase the quantity of goods and services in the economy. Conversely, Shilling, 2012 shares that artificially lower interest rates can have negative impacts on consumers in where those who are saving money are now receiving minimal to little return on their bank and money market accounts. Additionally, the day of the free checking accounts are fading away as well as banks and thrifts who deal with the lower interest earnings are increasing the amounts of required balances on checking accounts that pay zero interest up to a set minimum. It is also noted that many savers are leaving the money markets funds for the protection of accounts covered by the Federal deposit insurance corp. which is displayed in the M2 velocity of money. Conclusion Based on the aforementioned and the understanding of the foundation for which our economy and society as a whole is built upon, the need for a controlled and managed economic system to function effectively in order to facilitate trade and stabilize the flow within our economy is a must. To facilitate this need, the federal government implements policies and practices within the economy in order to regulate and control, and base decisions on those inputs and observations in order to stabilize and enable the money to grow and retract as required within our economic system to maintain a balanced equilibrium. Again, based on the aforementioned, the phrase â€Å"money makes the world go around† therefore can be attributed to the controlled systems, policies and/or networks of our federal government for which are governed to enhance and manage both the levels of and effects of our financial monetary system. Reference Amadeo, K. (2013). Budget deficit. U. S. Economy, Retrieved from http://useconomy. about. com/od/glossary/g/Budget_Deficit. htm Amadeo, K. (2013). Job creation – statistics, ideas, and job creation by president. U. S. Economy, Retrieved from http://useconomy. about. com/od/Employment/tp/Job-Creation. htm Amadeo, K. (2013). Should families making over $250,000 a year get tax cuts? President George Bush Tax cuts, Retrieved from http://useconomy. about. com/u/ua/usfederaltaxesandtax/Tax-Cuts-Should-The-Wealthy-Get-Tax-Cuts. htm AmosWeb. (2013). Consumer confidence, aggregate demand How to cite Economic Policy and Practice, Papers

Carlsberg International Strategy And Prospective Partners Commerce Essay Example For Students

Carlsberg International Strategy And Prospective Partners Commerce Essay Beer is one of the universe s most consumed alcoholic drinks. Nelson ( 2005 ) stated that it is the most popular drink after H2O and tea. There are tonss of brewing companies though accent will be made on Carlsberg in this case. The Carlsberg Group is the universe s 4th largest brewery group. The Group is distinguished by a high grade of assortment of trade names, markets and civilizations. Its activities are centred on markets where the Group has the strength and the right merchandises to procure a prima place. Due to the fluctuation of the markets, the part to growing, net incomes and development within the Group differs, both at nowadays and in the longer-term projections ( Carlsberg, 2012 ) . In states where Carlsberg has no breweries, the Group sells its merchandises through exports and licensing understandings. It aims to set up and develop strong market places for their international premium trade names through dynamic partnerships with licensing, export and duty-free spouses around the universe. The Carlsberg beer portfolio includes more than 500 trade names. They differ significantly in volume, monetary value, mark audience and geographic incursion. ( Carlsberg, 2012 ) . Outline1 Carlsberg International Strategy and Prospective Partners2 Potential acquisitions marks and strategic responses to acquisition commands3 Global trade name portfolio direction and consolidation4 Individual Reflection and Self-Analysis Carlsberg International Strategy and Prospective Partners The company operates utilizing an international scheme which implies that it takes the beer foremost produced for its domestic market and sells them internationally with merely low local customization. This highlights that the beer it sells meets a worldwide demand and at such do non confront significant rivals which implies that it is non confronted with force per unit areas to cut down its cost construction. It tends to centralise the beer development maps such as research and development in its place state and set up fabrication and selling maps in each state it operates. Carlsberg chose an international scheme for the undermentioned grounds: To increase gross revenues and net income growing by come ining new markets and besides selling in bing markets ( Hill, 2009 ) . This is achieved because it exports its merchandises to finishs like South America where it has no breweries and in some instances through licensing understandings like it did with Charrington and Tetley in Britain by giving them right to brew and bottle Carlsberg beer and in return get a royalty fee. It besides formed joint ventures with Scottish A ; Newcastle and a brewery in Honk Kong which it now to the full owns. The Group besides formed amalgamations with Danish challenger, Ruborg and Orkla of Norway which it subsequently owned to the full. From the instance survey, it is really obvious that they go into these markets at a slow but cautious gait by utilizing the services of the spouses and this is to avoid information costs and hazard and some other uncertainnesss such as trade barriers associated with foreign engagement. It besides gets to larn abou t the foreign market in instances where it formed joint ventures and amalgamations and subsequently take full control of the company. Another ground is to protect Carlsberg s place market portion because operating in foreign states takes off concern from its rivals by offering clients other picks and it lets the rivals know that they would confront the same response if they attack the place market ( Rugman A ; Collinson, 2009 ) . Furthermore, it is a tactics that Carlsberg could utilize to diversify themselves against the hazard and uncertainnesss of the domestic concern rhythm ( Rugman A ; Collinson, 2009 ) . This implies that by operating in other states it can frequently cut down the negative effects of economic swing such as recession in its place state. Despite Carlsberg apparently marauding inherent aptitude for 100 % control and ownership, prospective spouses engage with Carlsberg because of the undermentioned grounds: They will profit from its intangible belongingss ( Hill, 2009 ) , like in the instance of licensing where the licensee has the right to Carlsberg s rational belongingss such as patents, procedures and hallmarks. This besides applies to joint ventures as the spouse gets to cognize about its procedures every bit good. They would be able to offer their clients a wider scope of merchandises and services ( Mcpheat, 2010 ) . For illustration in licencing where Carlsberg gives them rights to its rational belongingss, the spouses tend to take advantage of more market chances ( freshly identified demand ) as they will non merely sell their ain merchandises but besides that of Carlsberg, which means that their clients have assortment of merchandises to take from. Aluminium EssayBesides, Carlsberg is a large company every bit good and might reject an effort to be bought because it does nt desire to lose its individuality. They could travel every bit far as reacting to any acquisition commands by buying other breweries as a signifier of defense mechanism. Due to its holding good market portions buying other breweries will do its portions bigger that it can non be bought within the brewery industry without anti-trust ( this refers to specific Torahs protecting trade and commercialism from unjust concern patterns ( Merriam-Webster, 2012 ) ) thereby doing it hard for companies like AB Inbev to get it ( Bragg, 2012 ) . Global trade name portfolio direction and consolidation A planetary scheme that sustains 500 trade names can non perchance be right because this scheme focuses on increasing profitableness and net income growing by harvesting the costs decreases that come from economic systems of graduated table and learning effects in other to hold a low-priced scheme on a planetary graduated table. This implies that this type of scheme suits where there are strong force per unit areas for cost decreases and demand for local reactivity are low. Carlsberg has 500 trade names and they customize their merchandise a spot to run into local conditions and this customization involves shorter production tallies and the duplicate of maps, which tends to raise costs. They wo nt harvest the benefits of economic systems of graduated table as there wo nt be decrease in the unit cost achieved by bring forthing different merchandise in big measures. Besides, they wo nt be able to salvage costs that come from larning by making in footings of bring forthing the same trad e name over and over once more i.e. their labour productiveness may non increase over clip as it is non easy for persons to larn most efficient of executing undertakings when a big volume of different merchandises is involved. Hence, production cost will increase due to a diminution in labour productiveness and direction efficiency, which might diminish the house s profitableness ( Hill, 2009 ) . Carlsberg should rationalize its installations and concentrate on far fewer trade names because it would be much easier to command and pull off fewer trade names and besides implementing a planetary scheme would be easier compared to when it has 500 trade names. By making this they would be able to profit from a spot from economic systems of graduated table and learning effects. Furthermore, the cost of publicizing so many trade names is comparatively expensive. The customization of the trade names would even do it more expensive if they have different advertizements for different trade names in different states. So they might desire to see concentrating on fewer trade names because the fewer the trade names the lesser the monetary value of advertisement. Individual Reflection and Self-Analysis Expectations: I had ever wanted to larn more about the universe of concern and direction and as such my outlooks for this faculty prior to get downing was to derive cognition about concern and direction in an international context as the key to a successful concern is how good the concern is managed. This outlook has been met because I have gained the preliminary cognition on how houses or administrations carry out their operations internationally for illustration the schemes on how houses enter a foreign market. It has besides given me an introductory cognition on how to place a good concern chance, have good program of action to run and besides pull off a house successfully. Challenges: I had some challenges during the faculty and this was because I studied Electrical/Electronic Engineering in my first grade and knew about nil about concern. Having to make instance surveies was nt something I had done in my old grade and so I struggled with how to critically analyse and reply the inquiries that normally follow suit. I would nt state I have wholly overcome this challenge as there are still some instances where I m still non able to grok a instance but I know reading in front of the talks and paying attending during talks has helped me to a certain extent. Preparation for Masters: I feel prepared to get down a Masters degree programme and this faculty helped me fix for it. This is because, I have learnt the rudimentss of international concern and direction and besides how to make extended researches and construction a study, and my referencing accomplishments have improved every bit good.

Purchasing Management free essay sample

Purchasing management directs the flow of goods and services in a company and handles all data relating to contact with suppliers. Effective purchasing management requires knowledge of the supply chain, business and tax laws, invoice and inventory procedures, and transportation and logistics issues. Although a strong knowledge of the products and services to be purchased is essential, purchasing management professionals must also be able to plan, execute, and oversee purchasing strategies that are conducive to company profitability. Sourcing reliable suppliers is a crucial part of purchasing management. Purchasing managers, agents, and buyers usually learn about new products and services from Internet searches, trade shows, and conferences. They meet with potential suppliers in their plants whenever possible. Skills in foreign languages may be helpful for sourcing suppliers in other countries. Purchasing management professionals must always assess potential suppliers in terms of the suppliers ability to deliver quality merchandise at a suitable price on time. We will write a custom essay sample on Purchasing Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Purchasing management professionals must be good negotiators, understand technical product information, have good mathematical ability, understand spreadsheet software, understand marketing methodology, and be outstanding decision makers. Increased responsibilities in purchasing management require good leadership skills, and higher positions often require a masters degree in a business related subject. Entry level purchasing management positions such as junior buyers, assistant buyers, and purchasing clerks, often require a college degree and some product knowledge. Larger distributors may require a bachelors degree for entry level purchasing management positions. Training and learning typically start in sales, then supervision, and invoice and stock monitoring. Professional purchasing management designations include Certified Purchasing Professional (CPP) in the United States, and Certified Professional Purchaser (CPP) in Canada. Purchasing managers, buyers, and materials managers control budgets, manage staff, and may analyze procurement methods as well as negotiate supplier contracts. Purchasing management professionals must understand tax laws, purchasing trends, ethics, and global outsourcing issues. Buyers and purchasing agents usually deal specifically with purchasing tasks, while purchasing managers usually supervise others, including purchasing agents. However, titles and duties vary greatly between industries and employers. Buyers often have assistants to place orders and keep track of delivery details. Buyers need the ability to select products that consumers will want to buy, so they need to understand trends as well as economic conditions that affect consumer buying decisions. Buyers employed in small stores may be responsible for purchasing the stores entire inventory, while buyers working for larger operations may focus on a few product lines. Merchandise managers may work with an advertising team to create a campaign for the goods they purchase. Follow up is an important part of purchasing management as responsibility does not end in purchasing goods. For example, merchandise managers need to check to be sure the products they buy are being displayed well to attract consumers. Buyers must keep track of customer demands for new products as well as determine how well goods are selling. Purchase Management is a function of materials management in a company. Their basic function is procuring the inputs for production function. This function encompasses suppliers in the market external to the organization and several internal to the organization. Till recently, the purchasing process simply involved placing an order with the supplier who offered the lowest price. Nowadays, increase in competition and market demand and scarcity of resources have forced organizations to reexamine their purchasing activities. The purchasing department functions have expanded considerably and include activities such as verifying the credentials of suppliers, inspecting the quality of the material to be purchased, ensuring the timely delivery of the material, etc. While the value of purchased items varies from industry to industry, it adds up to more than fifty percent of sales in all industries. Purchase management is regarded as a significant activity in many organizations because of the high cost involved in carrying out purchasing activities, increasing quality benchmarks, and increasing global competition. Purchase departments buy raw materials, parts, machinery, and services used by production systems. The objective of purchase management is to procure the right equipment, materials, supplies and services in the right quantity, of the right quality, from the right suppliers, at the right time, at the lowest price. Case 1 The Santek Images Business Unit Consolidated Products is a $21 billion company headquartered in Atlanta, Georgia. The company’s five business units, which offer a wide array of products and services, are the result of an aggressive strategy of mergers and acquisitions starting in the late 1980s. The corporate staff is surprisingly small, comprised of general management, legal staff, and human resources. Part of the reason for this small staff is due to the eclectic array of businesses housed within one corporate entity. A Business Week editor recently commented that â€Å"Consolidated Products could easily be broken up into five separate companies, since at one time it was five separate companies. † The editor also said that if the company â€Å"ever learned how to leverage its size in the marketplace, Consolidated Products could be a Wall Street powerhouse! † While Consolidated Products is a global corporation with facilities around the world, it operates each business unit as a highly independent and decentralized company. The corporate culture is best described as entrepreneurial, with each business unit being headed by an executive vice president who has complete profit and loss accountability. One of the business units, Santek Images, is the focus of this case. The purchasing and supply function is becoming increasingly important to CM Manufacturers, mainly because it has become one of the greatest spender of organizational funds and directly affects the organization’s profitability. The reasons for the increasing importance of the purchasing function include: Why purchasing is important in the new competitive environment: 1. Increase number of world-class competitors 2. Sophisticated customer base 3. Balance of power between buyers and sellers 4. Greater outsourcing 5. Allow company to participate in product development and design Purchasing objective: 1. Supply chain continuity 2. Manage the purchasing process efficiently and effectively * Determine staff level * Allocate budgets * Provide training and growth opportunity * Introduce procure to pay systemc 3. Develop supply base management Select competitive suppliers by identifying suppliers with potential and build close relationship with existing suppliers 4. Develop strong relationship with other functional stakeholders 5. Develop integrated purchasing strategies that support organization strategies 6. Support organization goals and objectives Supply chain management: a strategic approach to plan for acquiring the organization’s current and future needs through effective managi ng the supply chain in conjunction with cross-function team to achieve the organizational mission. More stringent quality standards- The higher the quality standards are, the fewer the number of suppliers able to meet the requirements. Also quality standards relate to cost, since the higher the quality is, the higher the purchase cost will be. †¢ Holding inventory- CM manufacturers has to buy as effectively as possible to keep inventory levels to a minimum and reduce the cost of holding inventory. †¢ Foreign suppliers- Using overseas suppliers may reduce purchasing costs by creating more competition in the market. Foreign suppliers can also ensure the supply of materials to the enterprise, regardless of the state of the local market. Shortages of materials- Carel has to prevent stoppages in the flow of materials by becoming aware of the risk in good time and by taking the necessary steps to counteract possible shortages in the market. †¢ Cost of developing new product s- Development costs relate directly to the buyer’s attempt to obtain the right material at minimum cost for the development of new products. †¢ Greater competition- The enterprise is forced to cut costs, in order to sell its product at a competitive price. †¢ Price control- Price control over the enterprises finished products forces it to cut costs in order to make a better profit. Inflation – Inflation causes the prices of purchased goods to rise. This puts pressure on the purchasing function to buy more effectively Key Concepts: Inventory are those stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies), and customer service (finished goods and spare parts). Inventory functions are anticipation, hedge, cycle (lot size), functions (safety stock, buffer, or reserve), transportation (pipeline) and service parts. Why do you keep inventory? What is the true cost of inventory holding? How much money can you add to the bottom line with good inventory management? How do you reduce you exposure to obsolete and excess inventory? How much are back orders causing you in lost sales and customer perception? What are Service levels: A desired measure (usually expressed as a percentage) of satisfying demand through inventory or by the current production schedule in time to satisfy the customers requested delivery dates and quantities. What Types of Inventory are there? There are many was to look at inventories. Inventories include raw materials: purchased items or extracted materials that are converted via the manufacturing process into components and products. Purchasing management is very important to any business, if not handled properly it can be detrimental to its success. There are steps to the creation of a project supply, service and material budge from detailed requirements within purchasing and supply management. These details show how to choose the best qualified suppliers and strategies for negotiating for the best prices and if there are benefits and costs of outsourcing, which includes the growth of outsourcing. A varied of organizations should be evaluated regarding their purchasing and supply management; what are there policies and practices in this process. In the technology industry there are companies that show market leadership in purchasing and supply management such as Dell, Toshiba and Gateway. When the term â€Å"purchasing† is mentioned most think of just buying and refers to the location and choice of suppliers, knowing the need of what needs to be bought, negoation of price and terms of agreement and then payment and delivery. The purchasing and procurement of supplies is the function and responsibility of procuring materials, supplies and services used in the course of conducting business. There was a time that purchasing and supply were viewed as two different process, today’s businesses have a different view and have combined the two processes. In Purchasing and Supply Management the authors, Johnson, Leenders and Flynn, state that â€Å"Purchasing, supply management, and procurement are used interchangeably to refer to the integration of related functions to provide effective and efficient materials and services to the organization.