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Lehman Wave
The term Lehman Wave refers to an economy-wide fluctuation in production and economic activity, with a wavelength of between 12 and 18 months, driven by a sudden major disruption of the economic system. The Lehman Wave is a damped, wave-like fluctuation around equilibrium. The amplitude of the Lehman Wave is larger for a business that is further away from its end market than for a business that is closer to its end market, which difference is caused by cumulative de-stocking of the intermediate supply chain. This term Lehman Wave has first been used by Dutch researchers in 2009 who gave that name to the economic wave that started in September 2008. They argue that the latter was caused by global de-stocking after the financial panic following the bankruptcy of Lehman Brothers on September 15, 2008. The Lehman Wave can have strong effects on the sales volume and therefore on the profitability of companies that are located upstream in the supply chain. Mechanism The strong dip in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Active Destocking
Active destocking in supply chain management is an active decision to reduce the inventory-to-sales ratio of a company. The inventory can include finished products, raw materials and goods in process. In general, active destocking is done following an autonomous, often financial decision by a company to improve its efficiency, free up cash and reduce its costs. Decisions for active destocking in general are made by financial executives or general managers. Active destocking should be distinguished from reactive destocking. Reactive destocking is a reduction of the inventory when expected demand goes down. When a company is only doing reactive destocking the inventory-to-sales ratio remains unchanged. Reactive destocking in general is done by the operational managers of the logistical activities, without additional instructions. The terms active destocking and reactive destocking were first used in an article about the Lehman Wave, published by Dutch researchers in 2009. A Lehman w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reactive Destocking
Reactive destocking in supply chain management is a reduction of the inventory when expected demand goes down. When a company is only doing reactive destocking, the desired inventory to sales ratio, remains unchanged. Reactive destocking in general is done by operational managers of the logistical activities, without additional instructions. The inventory can include finished products, raw materials and/or goods in process. The term "reactive destocking" is relevant when it is used in connection with active destocking. Active destocking refers to an active decision to reduce the inventory to sales ratio of a company. In general, active destocking is done following an autonomous, often financial decision by a company to improve its efficiency, freeing up cash and reducing its costs. Decisions for active destocking in general are made by financial executives or general managers. The terms "reactive de-stocking" and "active de-stocking" were first used in an article about the Lehman w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcy Of Lehman Brothers
The bankruptcy of Lehman Brothers on September 15, 2008, was the climax of the subprime mortgage crisis. After the financial services firm was notified of a pending credit downgrade due to its heavy position in subprime mortgages, the Federal Reserve summoned several banks to negotiate financing for its reorganization. These discussions failed, and Lehman filed a Chapter 11 petition that remains the largest bankruptcy filing in U.S. history, involving more than in assets. The bankruptcy triggered a 4.5% one-day drop in the Dow Jones Industrial Average, then the largest decline since the September 11, 2001, attacks. It signaled a limit to the government's ability to manage the crisis and prompted a general financial panic. Money market mutual funds, a key source of credit, saw mass withdrawal demands to avoid losses, and the interbank lending market tightened, threatening banks with imminent failure. The government and the Federal Reserve system responded with several emergency ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcy
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankrupt is not the only legal status that an insolvent person may have, and the term ''bankruptcy'' is therefore not a synonym for insolvency. Etymology The word ''bankruptcy'' is derived from Italian ''banca rotta'', literally meaning "broken bank". The term is often described as having originated in renaissance Italy, where there allegedly existed the tradition of smashing a banker's bench if he defaulted on payment so that the public could see that the banker, the owner of the bench, was no longer in a condition to continue his business, although some dismiss this as a false etymology. History In Ancient Greece, bankruptcy did not exist. If a man owed and he could not pay, he and his wife, children or servants were forced into " ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lehman Brothers
Lehman Brothers Holdings Inc. ( ) was an American global financial services firm founded in 1847. Before Bankruptcy of Lehman Brothers, filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merrill (company), Merrill Lynch), with about 25,000 employees worldwide. It was doing business in investment banking, Stock, equity, Bond (finance), fixed-income and Derivative (finance), derivatives sales and stock trading, trading (especially U.S. Treasury securities), research, investment management, private equity, and private banking. Lehman was operational for 158 years from its founding in 1850 until 2008. On September 15, 2008, Lehman Brothers filed for Chapter 11, Title 11, United States Code, Chapter 11 bankruptcy protection following the exodus of most of its clients, drastic declines in its stock price, and the devaluation of assets by credit rating agencies. The collapse was largely due to Lehm ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Libor
The London Inter-Bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. The resulting average rate is usually abbreviated to Libor () or LIBOR, or more officially to ICE LIBOR (for Intercontinental Exchange LIBOR). It was formerly known as BBA Libor (for British Bankers' Association Libor or the trademark bba libor) before the responsibility for the administration was transferred to Intercontinental Exchange. It is the primary benchmark, along with the Euribor, for short-term interest rates around the world. Libor was phased out at the end of 2021, and market participants are being encouraged to transition to risk-free interest rates. As of late 2022, parts of it have been discontinued, and the rest is scheduled to end within 2023; the Secured Overnight Financing Rate (SOFR) is its replacement. Libor rates are calculated for five currenci ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company is divided, or these shares considered together" "When a company issues shares or stocks ''especially AmE'', it makes them available for people to buy for the first time." (Especially in American English, the word "stocks" is also used to refer to shares.) A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets (after discharge of all senior claims such as secured and unsecured debt), or voting power, often dividing these up in proportion to the amount of money each stockholder has invested. Not all stock is necessarily equal, as certain classe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Damped Wave
Damping is an influence within or upon an oscillatory system that has the effect of reducing or preventing its oscillation. In physical systems, damping is produced by processes that dissipate the energy stored in the oscillation. Examples include viscous drag (a liquid's viscosity can hinder an oscillatory system, causing it to slow down; see viscous damping) in mechanical systems, resistance in electronic oscillators, and absorption and scattering of light in optical oscillators. Damping not based on energy loss can be important in other oscillating systems such as those that occur in biological systems and bikes (ex. Suspension (mechanics)). Not to be confused with friction, which is a dissipative force acting on a system. Friction can cause or be a factor of damping. The damping ratio is a dimensionless measure describing how oscillations in a system decay after a disturbance. Many systems exhibit oscillatory behavior when they are disturbed from their position of sta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lehman Wave Curve And Economic Cycle Curve
Lehman may refer to: People * Lehman (surname) * Lehman Engel (1910–1982), American composer and conductor of Broadway musicals, television and film * Lehman Kahn (1827–1915), Belgian educationalist and writer Places and physical features * Abbotsford-Mount Lehman, a Canadian electoral district * Lehman Township, Pennsylvania (other), either of two places * Lehman Caves, in Great Basin National Park in Nevada Institutions and organizations * Lehman High School (other), any of several schools * Lake-Lehman Junior/Senior High School, in Pennsylvania * Lehman Alternative Community School, in Ithaca, New York * Lehman Brothers, a global financial services firm which declared bankruptcy in 2008 * Lehman College, a constituent college of the City University of New York * Lehman's Hardware, a retail store in Ohio, specialized in products used by the Amish Business and finance * Lehman Formula * Lehman Wave See also * Lehmann * Lemann * Layman's terms Plain E ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
String
String or strings may refer to: *String (structure), a long flexible structure made from threads twisted together, which is used to tie, bind, or hang other objects Arts, entertainment, and media Films * ''Strings'' (1991 film), a Canadian animated short * ''Strings'' (2004 film), a film directed by Anders Rønnow Klarlund * ''Strings'' (2011 film), an American dramatic thriller film * ''Strings'' (2012 film), a British film by Rob Savage * ''Bravetown'' (2015 film), an American drama film originally titled ''Strings'' * ''The String'' (2009), a French film Music Instruments * String (music), the flexible element that produces vibrations and sound in string instruments * String instrument, a musical instrument that produces sound through vibrating strings ** List of string instruments * String piano, a pianistic extended technique in which sound is produced by direct manipulation of the strings, rather than striking the piano's keys Types of groups * String band, musical ens ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stock Depth
Stock depth is the total stock level build up in a supply chain, from the firm most upstream to the firm most downstream in the chain. The stock depth of the supply chain is calculated as the sum of the stock levels of all firms in a given supply chain. Relation with Lehman wave Stock depth is an important element in the behavior of the Lehman wave. If the growth of an end market changes X% in a period t, the supply chain on average changes (1+0.5*Stock depth/t)*X% Therefore Y%= Stock Multiplier * X% = (1+SD/t) * X%. If SD=1 and t=1 the multiplier for the average supply chain is . If the change is more sudden, say, within 6 months, the multiplier is 2, and if the change is very sudden, say within 3 months, the multiplier is as high as 3. In a market with stable growth the effects are small. The further away a company is from the end market, the bigger the reaction. Firms that are far from the end market thus experience higher variations in growth. During a Lehman Wave, firms st ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bullwhip Effect
The bullwhip effect is a supply chain phenomenon where orders to suppliers tend to have a larger variability than sales to buyers, which results in an amplified demand variability upstream. In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain. The concept first appeared in Jay Forrester's ''Industrial Dynamics'' (1961) and thus it is also known as the Forrester effect. It has been described as “the observed propensity for material orders to be more variable than demand signals and for this variability to increase the further upstream a company is in a supply chain”. Science at Stanford University helped incorporate the concept into supply chain vernacular using a story about Volvo. Suffering a glut in green cars, sales and marketing developed a program to sell the excess inventory. While successful in generating the desired market pull, manufacturing did not know about the promotional plans. In ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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