WSJ

Running Head : COMMODITIES BENEFITS , COMMODITIES RISKS

Commodities Benefits , Commodities Risks

A Review of Four Wall Street Journal Articles

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Commodities Benefits , Commodities Risks

Retailers Face the Test of Testing

1 . A Company should allot considerable amount of its capital in to assure its employees and its customers with the safety of handling its products . But there should be a proper allocation in that their assets are also protected . Commonly , companies should at least meet the given safety standards of the government but they could

also conduct a private research to avoid future difficulties with regards to safety

2 . Managers should do the task of allotting the right amount for the safety procedures in that they could still maximize their desired profits . `Safe enough ' is commonly justified by meeting the maximum allowable parts per piece of regulated substance used for manufacturing But this `Safe enough ' status is not as safe as having zero content for this regulated substance . Government 's safety standards usually change through time because of further studies that usually makes these standards to become tighter . If a sufficient number of a certain kind of product , say for example a toy with a lead content , was proven to have exceeded maximum allowable parts per piece of a regulated substance , all released product of this kind is subject to market recall

4 . The prevention cost pertains on how would the design for the toy would come up to meet their target costumers while meeting the standards . The toy 's size , paint , and composition are among of the factors considered for the prevention cost . The appraisal cost pertains to the activities designed to find quality problems such as product inspections and any type of testing while the internal and external failure costs are the costs of discovering defects of the product before and after its market release respectively . External defects are harder to control since the company 's image is at stake once it occurs . It is ideal to allot most of the money to the prevention , then next to the appraisal , next is internal and then lastly is to the external cost

5 . Inspection is one method of testing but it would mean a great lost to production if almost all of the products manufactured would undergo into it . Product samples would be a great help . Its number is statistically determined by allotting a considerable confidence interval that would lead to a conclusion with a known estimate for possible errors Inspection could be done in the appraisal and in the internal cost wherein the company could do the inspection task themselves or to make the inspection more credible they can hire professionals who would do the job independent to the company

6 . Company should improve their whole line of products before they would regain once it is lost

7 . Milk and other dairy products , vegetables and fruits that requires pesticides , and the whole processed foods industry . Like in the toy industry , the...