demand

Examples of demand in the following topics:

• Impacts of Supply and Demand on Pricing

  • The supply and demand model states that the price of a good will be the level where the quantity demanded equals the quantity supplied.
  • Should price decline, demand would increase.
  • That is, the quantity demanded typically rises causing a downward sloping demand curve.
  • A demand curve shows the quantity demanded at various price levels.
  • Demand-oriented pricing focuses on the nature of the demand curve for the product or service being priced.

• Impacts of Supply and Demand on Businesses

  • Using this logic, we can construct a demand curve that shows the quantity of a product that will be demanded at different prices.
  • Note that as the price of apples goes down, buyers' demand goes up.
  • The typical roles of supplier and demander are reversed.
  • Supply and Demand: P - price Q - quantity of good S - supply D - demand
  • Outline the economic effect of the laws of supply and demand

• Why does lean thinking elicit strong emotions?

  • Lean thinking contradicts a number of established production theories taught in business schools because it advocates making a shift from conventional batch and queue' production practices (i.e. the mass production of large lots of a product based on anticipated demand) to a ‘one-piece flow' system that produces products in a smooth, continuous stream based on customer demand.
  • Customer demand then ‘pulls' a product or service through the manufacturing process rather than having the business push its mass-produced goods onto the market.
  • Anything that does not contribute to the pull of customer demand is considered waste.

• Causes of the bullwhip effect and counteracting the bullwhip effect

  • The bullwhip effect is caused by demand forecast updating, order batching, price fluctuation, and rationing and gaming.
  • Demand forecast updating is done individually by all members of a supply chain.
  • Each member updates its own demand forecast based on orders received from its "downstream" customer.
  • The more members in the chain, the less these forecast updates reflect actual end-customer demand.
  • Make real-time end-item demand information available to all members of the supply chain.

• Conclusions

  • Leasing is a long-term profi t strategy that demands long-term thinking.
  • If these issues are not addressed, the demands of EPR legislation (Extended Producer Responsibility), which requires manufacturers to take back their products (including packaging) after use or face legal consequences, can be difficult to achieve.

• Control of the Money Supply

  • Although the consumer demand for liquidity is dictated by the public, small commercial banks are required to meet consumer demand and do so by identifying certain conditions including a set interest rate which apply to the loaning of bank liabilities.
  • A decrease in the interest rate will spark an increase in the consumer demand for money; an increase in the rate of interest will lessen its demand.
  • Any increase in the demand for money will increase spending levels and cause prices to rise.
  • If consumers expect price levels to fall, the demand for money will increase.
  • If consumers expect price levels to increase, the demand for money will decline.

• Bullwhip effect

  • As the bad information gets passed from one party to the next, the distortions worsen and cause poor ordering decisions by upstream parties in the supply chain that have little apparent link to the final end-item product demand.
  • The manufacturer sees an increase in retail orders, forecasts a long-term growth in demand for its jeans, and places orders with its suppliers for more fabric, zippers, and dye.
  • Just as end-customer demand falls, new jeans are being manufactured, and raw materials are being sent to the jeans factory.
  • When the falling end-customer demand is finally realized, manufacturers rush to slash production, cancel orders, and discount inventories.
  • When seasonal demand increases jeans purchases, the retail stores order more Open Range jeans, but the manufacturers cannot respond quickly enough.

• Exchange Rates

  • However, in this time, there is a lot of demand for European goods worldwide and people want more Euros to buy them.
  • A currency will tend to become more valuable whenever demand for it is greater than the available supply.
  • Conversely, it will become less valuable whenever demand is less than available supply.
  • Increased demand for a currency can be due to either an increased transaction demand for money or an increased speculative demand for money.
  • In general, the higher a country's interest rates, the greater the demand for its currency.

• Demand Planning

  • She may consider the workforce demand for the pharmaceutical company, like how many researchers and chemists the company may need, assess the in-house skills of the current employees, and develop programs to develop the new and existing workforce of the company.
  • The purpose of HR forecasting is to ascertain the net requirements for staff by determining the levels of demand for, and supply of, human resources now and in the future.
  • HR Demand is the organization's projected requirement for human resources, whereas HR Supply is defined as the source of workers to meet demand requirements, obtained either internally (current members of the organization's workforce) or from external agencies.
  • Specialist/Technical/Professional Personnel: These employees tend to be in high demand due to trade qualifications that are essential.
  • Determine the net demand requirements that must be met from external, environmental supply sources.

• Stability Through Fiscal Policy

  • Governments use fiscal policy to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of:
  • This causes a lower aggregate demand for goods and services, contrary to the objective of a fiscal stimulus.
  • Therefore, when foreign capital flows into the country undergoing fiscal expansion, demand for that country's currency increases.
  • The increased demand causes that country's currency to appreciate.
  • The "aggregate supply" and "aggregate demand" curves for the AS-AD model.