Market dynamics of commodity

Assignment Help Operation Management

Reference no: EM131366720

It is known that Cocoa bean prices respond with the market dynamics of a commodity (Sugar, Beef, Coffee, etc.); prices are determined by supply and demand. Given that barriers to entry in the cocoa market are low it often leads to oversupply or price collapses, in some cases altering the value of inventory on hand. Given that Sean Askinosie pays “well above” fair-trade prices for cocoa beans what risks is he exposed to with regards to his inventory? Just-In-Time inventory focuses on reducing cost while single origin sourcing focuses on doing the right thing. A critical part of being successful with Just-In-Time inventory is working closely with suppliers, is it possible to incorporate Just –In –Time inventory approach while being a single source origin based business? Do Just-In-Time and single origin sourcing work in conjunction or act as opposing forces? How? Why? How can Sean Askinosie balance taking care of his suppliers with doing what is right financially for his small business?

Reference no: EM131366720

Questions Cloud

Burden of proof for disciplinary action rest with management : Under the implied contract exception to the employment-at-will doctrine, an employee is wrongfully discharged if and when the discharge is inconsistent with an explicit, well-established public policy of the state. The burden of proof for disciplinar..

Three reasons unions may strike in today work environment : Describe your top three reasons unions may strike in today’s work environment. Discuss pay secrecy, company and legal issues, and what you believe a company’s policy should be in regards to employee pay. Explain how the personal behavior of employees..

What is workers compensation : Explain the various implications that workers’ compensation laws have on U.S. employees and employers. What is workers’ compensation, and what are associated costs?

Discipline only legitimate purpose is correction : Discipline’s only legitimate purpose is correction. Identify three purposes of discipline and explain how discipline can improve efficiency in an organization.

Market dynamics of commodity : It is known that Cocoa bean prices respond with the market dynamics of a commodity (Sugar, Beef, Coffee, etc.); prices are determined by supply and demand. Given that barriers to entry in the cocoa market are low it often leads to oversupply or price..

Which would be located in two growing suburbs of community : At a recent strategic planning retreat of a 40 person multispecialty group, the administrator made a presentation that focused on the coming year’s plans to establish the organization’s first two primary care satellites, which would be located in t..

An initial assessment of the company under consideration : An initial assessment of the company under consideration A short list (five to ten sources) of potential research materials) An overview of the challenges you anticipate when completing this project The company is choose iBlockbuster, Netflix, and th..

Dependent demand are important in inventory management : The concepts of independent and dependent demand are important in inventory management, but sometimes they aren’t clearly distinguishable. Can you find the elements of dependency and independency in the following situations: selling snacks at a footb..

User Account

All Pages