Description

The objectives of the course are:
•    define concepts in the field of economics;
•    get to know and understand the importance of economics in logistics;
•    get to know and understand the characteristics of the market, market structures and operations;
•    get to know the elements of the business process and understand the role in the business process;
•    get to know the costs and understand their characteristics;
•    understand the importance of cost control;
•    determine the selling price and be able to calculate the profit or loss;
•    understand and evaluate company performance indicators.

Competences acquired by students:
•    acquire knowledge in the field of economic theory;
•    get to know and understand the functioning of the market and market structures;
•    get to know and understand costs and calculations in business and logistics;
•    understand the importance of profit or loss in the context of company performance.

Instructors

izr. prof. dr. MARJAN STERNAD

Contents

Introduction to economics and its role in logistics
    Definition of economics, rarity and choice, management
    Microeconomics, macroeconomics
    Market mechanism, offer and demand
    Market equilibrium
    Theory of production
    Costs
    Amortization
    Calculation of costs of logistics services
    Business decision in logistics
    Theory of pricing
    The importance of tariff systems
    Incomes, expenses and business outcome
    Market structures
    Monopoly and total competitiveness
    Risk and profit
    Analysis of the threshold of cover
    Efficiency, performance and competitiveness 
    Measuring efficiency and performance
    Basic financial statements
    Competitiveness
    Achieving competitive advantage

Learning Outcomes

Knowledge and understanding:
At the end of the course the student will be able to:
•    define and understand the economics of the company and the links with logistics;
•    understand the operation of market mechanisms;
•    calculate costs and prepare a calculation;
•    determine the selling price based on cost analysis;
•    define company performance indicators.

Recommended Readings and Tools

Button, K. J. (2010). Transport economics (3rd ed.).  Edward Elgar.
Jonsson, P. (2008). Logistics and supply chain management. McGraw-Hill.
Rebernik, M., & Širec, K. (2022). Ekonomika podjetja (5., spremenjena in dopolnjena izd.). Lexpera, GV založba.
Samuelson, P. A., & Nordhaus, W. D. (2022). Microeconomics (20th ed., Special Indian ed.). McGraw-Hill Education.

Planned Activities

Lectures: students understand the theoretical frameworks of the course. Part of the lecture course is in a classroom while the rest is in the form of e-learning (e-lectures may be given via video-conferencing or with the help of specially designed e-material in a virtual electronic learning environment).

Tutorials: Students enhance their theoretical knowledge and are able to apply it. Part of the seminar is in a classroom while the rest is in the form of e-learning (e- tutorials may be given via video-conferencing or with the help of specially designed e-material in a virtual electronic learning environment).

Assessment Methods and Criteria

Written examination: 80%
Tutorial assessment: 20%