Friday, 17 May 2024, 8:11 PM
Site: Bcom International Supply Chain Management
Course: Bcom International Supply Chain Management (IMM)
Glossary: SCS Glossary

Economies of Density

In microeconomics, economies of density are cost savings resulting from spatial proximity of suppliers or providers. Typically higher population densities allow synergies in service provision leading to lower unit costs. 

Economies of Scope

Economies of scope are "efficiencies formed by variety, not volume". In economics, "economies" is synonymous with cost savings and "scope" is synonymous with broadening production/services through diversified products.

Convergence

The merging of distinct technologies, industries, or devices into a unified whole

Market Economy

A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand. 

Transhipment

This involves the transfer of goods from one carrier to another and/or from one mode to the other.

Social Responsibility

The responsibility of an organization for the impacts of its decisions and activities (products, services and processes) on society and the environment, through transparent and ethical behaviour that: 

contributes to sustainable development, including health and welfare of society;

takes account of the stakeholders’ expectations;

is in compliance with the applicable law and consistent with international norms of behaviour; and

is integrated throughout the organization and practiced in its relationships.

Economic Principle

The economic principle encompasses a wide variety of economic laws and theories that define or explain how an economy attempts to satisfy the unlimited demand in the marketplace with a finite supply of resources available to do so.

Business

A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

Business Management

Business management definition is managing the coordination and organization of business activities. Management is in charge of planning, organizing, directing, and controlling the business's resources so they can meet the objectives of the policy.

Indivisibility

Unable to be divided or separated.