Explain why inventory costs and inventory levels have declined Essay

Explain why inventory costs and inventory levels have declined relative to GDP over the last twenty years. Is this beneficial to the economy Why or why not - Essay Example ments have reduced, and in some cases eliminated, inventory carrying costs, in-transit inventory carrying cost and order cost, thus an overall reduction in inventory cost. According to Coyle et al. (2012), inventory is an asset because in measuring gross domestic product, GDP, the value of goods and services an economy produces would be considered. Thus, a reduction in this asset reduces the return on assets, ROA which in essence means a reduction in the GDP. As such, as inventory costs and levels have declined over the past twenty years, so has the GDP. No, this is not beneficial to the economy. As noted by Coyle et al. (2012), GDP is a critical factor of the wellbeing of an economy. This is directly dependent on the level of spending in the economy. With the advancements in technology that has cut on inventory costs and generally on costs in supply chain, the level of spending by logistics organizations, and ultimately on consumers, has decreased. The resultant decrease in GDP has negatively impacted on the

The Role of Information Systems to Support an Organization Essay

The Role of Information Systems to Support an Organization - Essay Example These management systems are also termed as collaboration systems. In the days of the past, collaboration among peers or colleagues was not as easy as it has been made by the aid of collaboration systems. The well-known quote â€Å"Two heads are better than one† can be used to define the concept of collaboration systems. It is a common practice in organizations for people to work together and this collaboration usually achieves better results than working in isolation. Pinnadyne (2009) stated that collaboration might involve the activity of generation of an idea, creation of a new concept or implementation of a common goal. Therefore it can be defined as the joint venture to achieve a common goal with a shared direction. Collaboration Systems have the following tools: Content management involves the process of storing information for retrieval by users whenever the need arises. Hartland (2009) explained that it facilitates the workflow of a group of peers or colleagues that would be involved in accessing or adding content in the repository. It can be considered as a collection of processes that provide management of the workflows involved in the system. There might be many users involved in the process of adding data to the repositories therefore there needs to be a mechanism to handle such activities. The data in the content management systems might be of different types for example, documents, video clips, images, personal information etc. Content management system in an enterprise is considered to be their vital asset nowadays as it gives a structured look to their unstructured data, while catering to all the diversity of formats that might exist in the data. Another critical aspect of content management is the ability to keep versions of data as it evolves. The version number is a well-known mechanism to keep track of old and new data. Some organizations do not value older versions of data but it also has a