Business economy Essay Example | Topics and Well Written Essays - 1000 words

Business economy - Essay Example An excise tax is defined as a tax imposed on a specific amount per unit of product, and for this reason is sometimes also referred to as a specific tax (Keats & Young, 2005, p. 149). In contrast, there are ad valorem taxes such as sales taxes, which are imposed on the value or price of the product or service. Taxes imposed on â€Å"unhealthy† goods are also called â€Å"sin taxes.† They are usually state-sponsored taxes which legislators readily resort to at times when the government is seen to run a budget deficit and needs to raise funds. The taxpayers rarely protest any imposition or increase of sin taxes, for the reason that the tax is not imposed on the general public but only those who buy the product which is seen as harmful to them, anyway. Sin taxes may either be specific or ad valorem, and are generally imposed on cigarettes or tobacco, liquor, and gambling. (Investopedia, 2009) The price, income and cross-price elasticities of demand as well as the price elasticity of supply all bear on the effectivity of imposing sin taxes. Price elasticity measures changes in demand due to changes in prices of the good, income elasticity the changes in demand due to changes in the buyer’s income, and the cross-price elasticity of demand changes in demand for a good due to a percentage change in the price of a related good. On the other hand, the price elasticity of supply refers to the percentage change in the quantity supplied for a good given the percentage change of price for that same good. These four elasticities are important in the determination of the tax incidence, though those that bear most directly are the price elasticities of demand and supply. This is because different commodities have different responses to increase in prices, and government’s selection of which commodities to tax and how much to tax will determine government revenue. Rose (2003) observes that this was considered by Adam Smith

Meditech surgurical case study Term Paper Example | Topics and Well Written Essays - 1000 words - 1

Meditech surgurical case study - Term Paper Example From all indications, it is clear that Meditech used cost-effective supply chain instead of using a responsive supply chain as it would have more useful when it comes to high innovative products considerations. The supply chain used by the company was customer service oriented and hence the delay. The company has also been facing problems in poor service quality due to strain in its production capacity. The strain in its production capacity made the company experience constant shortage in the introduction of new improved products. It also had problems with high finished goods inventory. It is important for the company to plan on the introduction of a new cycle through the three phases of manufacturing and this should be done two months before the products is marketed to avoid any shortages in the market (Leeman, 150). a. The introduction of new products in Meditech Surgical were totally unplanned for and was done without properly strategizing on it supply chain and production schedules. This was the reason why the arrival of net order in the company was more than its finished goods (FG) inventory. Lack of proper strategies in the introduction of new products led to underestimated productions hence delayed delivery of orders. b. Faulty forecasting and mechanical techniques in the company resulted into a wrong prediction which then resulted in faulty targets (Leeman, 150). The company has had a poor ability to forecast the demand for its new products which then led to underestimation in the new product production. c. Finished goods inventory in the company is almost 40% above the desired levels. High level of finished goods inventory is a clear indication that the goods are not moving in the required rate and that customer orders are not being processed within the stipulated time. d. Meditech Surgical has long organizational structure