Kickoff Week Flashcards
Define Scarcity
The condition in which wants are forever greater than the available supply of time, goods and resources. Even if it was free.
Why is Scarcity the underlying fundamental problem?
Time is Scarce
Incomes are Scarce
Resources are Scarce
Define Resources
The inputs used to make the goods/services that individuals and society desires
What are some examples of resources
Raw materials, physical capital, labor, human capital, entrepreneurship, technology
Define Physical Capital
Human-made goods used to make other goods (equipment, machinery, etc.)
Define Human Capital
experience, training, education of labor force
Define Entrepreneurship
the ability to organize the other inputs and to take the risk
What are the 3 main economical questions for society?
What goods/services should we make?
How to make the goods/services?
How do we allocate the goods/services that we do make?
Define Efficiency
How can we make resources go as far as possible?
Define Equity
How we split up the end result.
Define Economics
The study of scarcity in society and the decisions it drives, including the distribution of goods and services
Normative vs Positive Economics
Normative is centered around moral, ethical, and subjective beliefs of how things should be.
Positive is centered around factual testable and objective beliefs on how the world is.
Define Microeconomics
the study of choices facing individuals (households, businesses and even government), and their interactions.
Define Macroeconomics
The study of how the aggregate of individual decisions (microeconomics) affect an entire economy (national or global)
Who are the 3 microeconomic agents
Households, Firms (business) / Industries, Government
What are the four steps of Supply Chain
Plan, Source, Make, Deliver
Simple Supply Chain
Bring Stuff in, Make Stuff, Ship Stuff Out
Medium Complicated Supply Chain
Suppliers, Distributors, Manufactures, Wholesalers, Retailers
Why is a smaller supply chain easier than a bigger one?
Communication is easy
What happens as supply chains get larger?
Major corporate departments (Purchasing, Marketing, Sales, Operations) get siloed.
What is the Integrated Supply Chain
End to End Supply Chain, from resources to consumers
What is the Risk Equation
Risk = Probability x Consequences
What are the six major themes of Supply Chain
Talent, Strategy, Relationship Management, Visibility, Coordination, Design
What’s a good format to answer a question?
A - B - A
Answer - Background - Answer