Economics of Exchange Research Paper Example | Topics and Well Written Essays - 1250 words

Economics of Exchange - Research Paper Example Contextually, the Senior Leadership Team (SLT) had been focused on keeping the entire manufacturing process in-house, concerning which the management presumes that out-sourcing certain elements of its production system or rather its supply chain system shall be beneficial for the company to satisfy the augmenting demand. With due concern to the above mentioned aspects regarding the outsourcing initiatives of BlueJay, this essay would intend to present a workbook for weekly staff meetings which is intended to be held in the 30 days period of recommending the outsourcing plan. Hence, the objective of the workbook would be to develop adequate understanding amid the supply chain management team regarding the background of the decision and evaluation to be taken. The proposed workbook will thus address the economic aspects of value and utility (i.e. the concept of economics of exchange) in relation to decision making process to render a better knowledge of economic as well as financial el ements related with the company’s upcoming decision. Workbook The workbook is scheduled for a 30 days period describing the aspects to be covered in 4 weekly staff meetings. ... Correspondingly, the last meeting will be held to obtain feedbacks and evaluate the understanding of the staffs which would assist them in contributing efficiently to the overall outsourcing process. Economics of Exchange Today, when there is a price tag hanging on every element which can be a part of a transaction, the concept of economics of exchange becomes quite apparent. It is often regarded as the process of serving commodities in exchange of a value, particularly in monetary terms. Thus, it can be affirmed that the concept of economics of exchange is based on the process of transaction which further tends to determine the balance between the customers’ requirements and the company’s capacity. It is often described as a transaction process through which the firm intends to serve its customers with the notion of earning value for the commodities offered (Williamson, 2008). In relation to BlueJay’s current economic conditions, the SLT of the firm’s sup ply chain management have proposed the strategy of outsourcing related to which, a number of researches are to be conducted for making effective decisions with concern to the quality as well as cost of the products. This in turn is likely to influence the economics of exchange in the supply chain process of the company where it is required to make decisions with regards to the quantity of in-house production, quantity of products to be outsourced, prices and the risks which are connected with the suggested procedure. It is expected that the outsourcing will assist the firm in reducing the cost of production for the goods and will also assist in meeting excessive demand from the customers. On the