Genetic Fingerprinting in Paternal Testing and Forensic Science Research Paper

Genetic Fingerprinting in Paternal Testing and Forensic Science - Research Paper Example Introduction Genetic fingerprinting is a technique that relies on exploiting the differences between human DNA sequences, particularly in variable number tandem repeats (VNTRs), for identification. Predominantly the technique is used in paternity testing and the forensic sciences, and can be used as evidence in a criminal trial (Sheindlin 1996). The use of these VNTRs relies on the fact that these are highly variable between non-related humans and so any matches that are made, either between two individuals or forensic evidence and an accused, is not likely to arise by chance (Toth 1997). The purpose of this essay is to explore the applications of genetic fingerprinting technology in paternal testing and forensic science, as well as highlighting some of the pitfalls of using such technology, particularly in a legal setting. Genetic Fingerprinting The principles of genetic fingerprinting rely on the differences between human genomic sequences. Although 99% of the human genome is the s ame in structure, there are certain differences (known as polymorphisms) that are distinctly different in individuals that are not related. For example, VNTRs, particularly short tandem repeats (STRs or microsatellites) are molecular markers that are extremely prone to mutation (Gill et al 1987). All human genomes contain STRs, but these vary hugely between populations and within them, to the extent that 1 in 5 million people will have the same sequence by chance (Jeffreys, Wilson & Stein 1985). Any technique that can ascertain whether two DNA samples match will, therefore, reduce the possible number of perpetrators hugely, making genetic fingerprinting immensely useful to the law. Related individuals also have similarity due to the STRs being co-dominant; each offspring will have one allele from each parent. It is this fact that makes genetic fingerprinting useful in paternity testing (Jeffreys et al 1985). Genetic profiling can occur in a number of ways. One of the most common is polymerase chain reaction (PCR) which amplifies the amounts of a specific DNA sequence, which is evidently useful when working with known STRs. This is achieved using oglionucleotide primers as well as a DNA polymerase, with the primers targeting a specific STR and the DNA polymerase amplifying them for analysis (Welsh & McClelland 1990). It is important that multiple STRs are analysed using PCR, because each individual one can be shared by around 5-20% of the population (Sheindlin 1996). Using multiple STRs for analysis greatly increases the probability that an exact match will be made for whatever reason the analysis is occurring. This method relies on the principle of independent assortment, and the product rule for probabilities means that the chance of someone having the same alleles at multiple STR loci decreases with the number of loci analysed. Genetic Fingerprinting in Paternal Testing It is because of the nature of VNTRs that makes them useful for paternal testing; because they are co-dominantly inherited, each individual will inherit one copy from each parent. This means that when trying to ascertain paternity, an individual will have the same sequence at each VNTR locus as the father (as well as one from the mother at the corresponding locus). If the mothers VNTR genotype is known, then these

Consequentialism Essay Example | Topics and Well Written Essays - 1000 words

Consequentialism - Essay Example Having to make decisions based on the general welfare of people or its capacity to bring about positive change is justifiable under all circumstances. Consequentialism has been accepted by many realists, who understand that some actions, even if considered wrong with regard to moral rules, may have positive outcomes, benefitting a large number of people, which then justifies the act. The argument presented is to validate the superiority of Consequentialism over other ethical theories in practice. It is important to defend the ethical theory of Consequentialism which can be the key to maintaining stability in the society, without forcing upon them a set of rules to accept as moral standards, giving them more realistic options, and allowing them to decide upon the moral implications of their actions based on its outcome. It requires to be accepted as a moral theory and not an incessant practical casuistry as alleged by opponents of Consequentialism. Standard rules that define moral values are not practically feasible, as many decision making situations may be indefinable in terms of morality. Standard Consequentialism is a theory of decision. It attempts to identify, from a given set of options, the option which is right that an agent should take. The right option to any decision is the option that maximizes probable value or that which will have the best probable consequences, which directly aims at common welfare, which should be the underlying goal of an ethical theory such as in Consequentialism. The function which determines what is the right decision is also the function which ought to be applied in decision-making: it serves at once to evaluate options, and to select them. (Pettit) Consequentialism promotes a more realistic and futuristic approach to define moral standards, implying that, a certain act may be justified by its

The Fashion Chanel Essay Example for Free

The Fashion Chanel Essay What are the 5 primary types of consumer and market data provided in the case you would consider if you were Dana Wheeler? Discuss specific result elements (not a summary of the exhibits). As Dana Wheeler, I would consider the following five primary types of consumer and market data: 1. Cable Ratings: Both Advertising and Affiliate revenue will depend upon these as the usability of a channel to the cable company and advertisers depend upon the amount of viewers a channel has. 2. Annual Demographic Survey: Provides key data to focus on 18-34 year female iewers. This audience group would be the prime focus as their viewership will attract the advertisers and will have them pay the largest CPM. 3. Advertising Revenue Model: Advertising revenue is the largest source of income for the channel which could go down by 10% if there was no change in the channel strategy. 4. Competition from other Networks: This data allows the channel to find what is most desirable amongst the viewers thats attracting them to the other channels. . Attitudinal Research Findings: Cluster segmentational Data will provide an insight nto different viewer populations as to what to focus in order to market effectively bringing in high CPM. 2. Consider 3 primary options presented. Discuss the pros and cons of each Broad Multi Segment Approach: This includes targeting viewers from all the age ranges including Fashionistas, Planners ; Shoppers and Situationalists by investing in marketing and advertising campaign as well as programing. PROS: This approach will lead to approximately 20 % increase in viewership as it will be targeting a broad range of viewers increasing their awareness and liking towards the channel. Also, it will not require an additional programing expense as compared to the other approaches and will deliver about $40 M more in terms of net income as compared to the base income of 2007. CONS: Ad Sales forecasted a decrease by 10% in CPM if the current trend continues. Broad Multi Segment approach still does not present with a different category of viewers to maintain $2. 0 CPM, instead, it brings it down to $1. 80, which is the same 10% decrease. Since this approach does not target specific audience, TFC will still run under risk of competitors as CNN and Lifetime penetrating their premium segments. Fashionistas segment Approach: This includes targeting Fashionistas which are strong in highly valued 18-34 year old female group. PROS: Since this approach mainly targets 18-34 year old females, it wil l lead to a higher CPM of about $3. 50 from base $2. 00 which will generate a net income of about $100 M more as compared to the base income. Also, it will help TFC to compete with Lifetime which mainly targets females ranging from 18-34 years. CONS: The amount of viewers targeted in this approach is mere 15 % of all viewers which will decrease the channels ratings from current 1. % to 0. 8%. Also, it will cost an additional programming cost of $1 5 M to the channel. Also, targeting one specific audience will not create much awareness or liking of the channel in other viewer groups and they might also lose their loyal viewers. Fashionistas and Planners/ shoppers segment approach: This will include programming targeted to Planners/ Shoppers and Fashionista segments. PROS: This scenario will yield approximately $115 M more in net income as compared to the base income of 2007 due to an they will also be able to compete with other channels and attract their viewers. CONS: This approach is the most expensive approach with a total incremental cost of $20 M. Also this change in programming might cause the channel to lose their loyal viewers and might result in declining viewership 3. If you were Dana Wheeler, what solution would you recommend and why? As Dana Wheeler, I would suggest approach 3 i. e. Fashionistas and Planner/shoppers segment approach, due to the following reasons: 1. The Broad Multi Segment Approach would lead to an increase in ratings from 1. 0% to 1. 2% but as it is not targeted to specific audience, here is a high risk of losing that rating to the competitors. Also, the amount of net profit made would be least in this case i. e. about $40 M yielding a profit margin of 29% which will be a mere 10% more than base profit for the current year. 2. The Fashionista Segment Approach would attract the highest desirable audience population i. e. females ranging 18-34 years thereby leading the channel to increase the CPM from $2. 00 to $3. 50. The amount net profit made in this case would be about $100 M more, yielding a profit margin of 37% which will be a significant 18% more han the base profit. This approach leads to a decline in the ratings from 1. 0% to 0. 8%, as it targets only 15% of the audience population. Also, it requires an additional expense of 15 million and a risk of losing current the loyal clients if the channel becomes too targeted on Just one kind of audience. 3. The Fashionistas and Planners/Shoppers Segment Approach seems most favorable as despite the $20 M programming cost, this approach targets 50% of its audience which will enhance viewer ratings from 1. % to 1. 2 % as it will enable the channel to attract audience rom competitor channels as well. This approach is not too drastic but will also cover the desirable viewer range of 18-34 year females, yielding a CPM increase from 2. 0% to 2. 5%. As a result, this approach would yield a net profit of $1 15M more leading to a profit margin of 39%, which is 20% more than the base profit.

Real Danger Men: Begin To Think Like Computers

Real Danger Men: Begin To Think Like Computers This quote by Sydney G. Harris has several connotations to it. In one view, it essentially shows that how we work, how we live and even the way we think is constrained by the tools that we use. Explaining it with a very simple example, as an adult in the world today, we do not have to write anything at all. We just type everything. So, there really is no call for proper handwriting. It is very similar to another famous quotation If you have a hammer, every problem looks like a nail. It narrows your thought. It narrows your skills and diminishes your imagination. The essential significance of this quote by Sydney G. Harris is that one should open up ones mind and realize the peril that we all face today, and not what we perceive to be the real threat. Today, the predilection is for us to think about how one day, machines and computers might be able to think like us, and the troubles that that might bring for the human race. Have we all not given a thorough thought to it after watching the Sci-fi Hollywood movies set in the 22nd century, where the true enemy of earth is the army of machines that men themselves once created? But people do not realize the real hazard that faces us today, which is that if we start thinking, behaving and acting like the machines do; it would be by far more disturbing than the former. Let us try and answer some very simple questions to understand what Mr. Harris is all apprehensive about. What is that inimitable human trait that we stand to lose and in the process become like machines? What is it that separates humans from computers? Is it our ability to think? Or is it our ability to comprehend and learn? As quoted by Edsger W. Dijkstra The question of whether computers can think is just like the question of whether submarines can swim. They do not do it on their own, but it solves the purpose. With the development of expert systems and advanced technologies, machines do now think by themselves and learn on their own. So, what is the fine line between humans and machines? May be it is our ability to feel, to imagine, to be intuitive and to have emotions. As Albert Einstein once said, Imagination is more important than knowledge. For knowledge is limited to all we now know and understand, while imagination embraces the entire world, and all there ever will be to k now and understand. Let us look at the difference between this imagination, intuitiveness and facts, the knowledge accumulation. Blaise Pascal was one of the very famous physicist, mathematician and philosopher, who also invented the first digital computer to add or subtract up to eight digit numbers. One of his most famous works is called the Pensà ©es, explained the distinction between the spirit of geometry and the spirit of finesse, the difference between machines and humans. The key distinction between these two modes of according to Pascal is that while the spirit of geometry analyses observable facts into clearly definable elements and uses deductive reason to construct a system of knowledge and rules based on meticulous attestation, the spirit of finesse concerns ideas and perceptions which cannot be precisely defined or broken down into parts, and uses instinctive reason to make sense of the relevant phenomena as a whole. Furthermore, the spirit of finesse results in imperfect opinions about which intellectual people may from time to time argue. A computer thus, works as a spirit of geometry and humans as a mix of the spirit of geometry and the spirit finesse which gives them the ability to reason logically and also to have an intuitive mind, which has a suppleness of contemplation for things it loves. Such a brain is accustomed to adjudicate at a single glance and that too tacitly, without mechanical rules. For example, Einstein did not uniquely possess any piece of information that was not accessible to physicists of that era when he developed the theory of relativity. He merely deduced the same existing facts in a completely different manner, and then made testable prophecies on the basis of them. This explains another of the very famous quotes by Albert Einstein Laws are only reached by non-logical methods. To make a law one has to have an intellectual love of the subject. We may now deduce the apprehensions of Mr. Harris. While the mechanical thinking of computers implies that every predicament has a definite and clearly definable solution, still not all the human thinking can be equated with problem-solving. There are no set rules and theorems which can logically conclude many important questions that confront us in the human life What is religion?, Does God truly exist?, How should one choose a career path?, Am I truly in love? These questions do not have unambiguous solutions, but these queries are difficulties that require thoughtful illumination. [Richard Van de Lagermaat, 2002] The danger of losing our humanly thoughtful illumination is very evident in todays world. Apart from the example of using computers for writing, we can deduce from the classroom teachings, how we lay heavy importance on facts and information. Every school focuses on a truck load of information which is stormed into the young brains. We inculcate the substance of logic in our children at a tender age, thus, taking away the essentials that make them more human than anything else, the originality in thinking, in perceiving, in imagining all by them themselves. A quote from Charles Dickens novel, Third Times strengthens this school of thought: Facts alone are wanted in life, Plant nothing else, and root out everything else. You can only form the minds of reasoning animals upon Facts; nothing else will ever be of any service to them. It shows the direction that we are moving. But this is not the lone want from our life and our education. It is also a must to understand how to think intelligently on the basis of raw facts, make consequential connections between them, and come up with imaginative original ideas. The above discussions pose computers as an evil creation of humans. Does that mean that computers are truly an iniquity? Are they destroying the very nature of mankind? Evidently and quite rightly it is untrue. According to some researchers, programs such as clip art and Microsoft Word encourage creativity in children by making it possible for them to write and edit documents without getting encumbered with the mechanics of handwriting and spelling [Provenzo,1999]. The computer is thus, not evil unless it is used as an alternate to learn the fundamentals, such as writing, reading and basic mathematics. The time that we become dependent on computers and start using it as our numero uno resource of education, we lose the basics which build everything else. This is when we lose our creativity, originality and narrow our thinking to programmable machines. Thus, this quote expresses an extraordinary message, that even though technology is highly advantageous and it truly makes our life a lot easier for us, if used incongruously, it is also as devastating as it is obliging. For example, a car is surely is a faster and more comfortable way of commuting from one place to another, especially over long distances. And with time, it has only improved to better suit the needs and comfort of ours. However, while exploiting the luxury and ease, we tend to become so used to this comfort that we start neglecting the very nature of ours, walking, as and when possible. From the very first word to the last one in this quote, Sydney G. Harris is trying to differentiate between a humans lifestyle and a computers lifestyle. By saying that men will begin to think like computers, he indicates that our future is likely to be lazy because this is what the tool all of us use gives us. Computers are out hammers which drill all the nails by themselves. It give s us shortcuts for all the problems we feed it; it does things the easy way. The same implies to any other technology. Consider the following questions. Has Google made us lazy? Are Facebook friends our true friends? Are we more efficient when we are multi-tasking on our android and windows hand-held devices? We need true answers to all these questions. What we need is a real-time realization, a quick snap back to the time when we did not have all or any of this. That time, we used to read in libraries to find out about people, places and things and in this process used to learn more in the library than what we do through Google, just the overview. We used to be close to our dear friends and met them often, confided in them instead of dropping a virtual hippopotamus on them through Facebook. We used to be more focused. We used to have more time than we seem to have right now with all the technology and we thought multi-tasking was saving us all the energy and time in the world. We used to be healthier than we are. We used to go out and play under the sky on a green earthly carpet of grass instead of building virtual farms, cities and caring for pets that did not exist. We need a quick consciousness, to apprehend that we live inside a computer now. We have our own virtual lives and cities and events, all inside a computer. And between this entire clamour, we are forgetting how it felt to be real, to be human. Through this quote, Mr. Harris is trying to turn us around to face the real danger and make us understand that, in fact, we are losing our inherent humanness. He is trying to alarm us that if we humans continue on this path to think, act and behave like computers, the consequences will be far more severe. The author of the quote has surely achieved his ambition by saying this quote. John F. Kennedy once said Man is still the most extraordinary computer of all. The discussions surely suggest that we may not be far from the time when this quote becomes the unintended reality of the human race and we are all reduced from the most extraordinary creature to have walked the planet, to the most extraordinary computer to exist. To conclude, in this progressively more computer subjugated and fact-driven world, as the quotation by Sydney G. Harris suggests, the real danger is not that machines would start thinking like humans, but neither is it that humans will start thinking like machines. The biggest concern is that humans will stop thinking like humans do. We will lose the very innate nature that makes us humans. We face the hazard that people begin to think solely like computers and that we lay more value to technical proficiency than astuteness, and mathematical calculations than sound acumen. We live in virtual lives and in process forget the wonder of natural life we have been bestowed by the almighty. We are succumbing into our own trap, into our own creation. Hence, following the theory of Pascal, we must inculcate from childhood in our students, not merely the spirit of geometry, but more importantly, the more difficult and ever so obscure, the spirit of finesse.

Free Much Ado About Nothing Essays: Schemes and Tricks :: Much Ado About Nothing Essays

The plot of Much Ado About Nothing is an elaborate network of schemes and tricks. This statement is confirmed throughout Much Ado About Nothing. The play contains many examples of tricks and schemes that are used to manipulate the thoughts and feelings of characters. The major examples of such manipulation include- Don Pedro, Claudio and Leonato tricking Benedick into believing that Beatrice loves him, Hero and Ursula trick Beatrice into thinking Benedick is in love with her. The relationship between Claudio and Hero also endures much manipulation. For instance Don John and Borachio trick Claudio and the Prince into believing Hero is unfaithful. As in the tradition of Shakespeare, the Friar deceives everybody into thinking Hero is dead. An instance of trickery involves Benedick being manipulated to believe Beatrice is in love with him. This trickery is carried out playfully by Don Pedro, Leonato and Claudio. They realise Benedick's stubbornness in Act II Scene iii, when he states "ma n is a fool when he dedicates his behaviours to love." Due to this stubbornness Don Pedro, Leonato and Claudio must devise a way of attaining the love amid Benedick and Beatrice. In Act II Scene iii the men accomplish this by way of waiting for Benedick to be within ears reach, then raising the topic of Leonato's niece Beatrice. Don Pedro’s reference about "your niece Beatrice was in love with Signor Benedick." helps to accomplish such manipulation. This scheme is completed when this is overheard by Benedick, and due to his insecurity about love he falls for their trick, thus loving Beatrice. Another example of manipulation that is closely related to the one involving Benedick but Beatrice becomes the focus of the scheme. Like Benedick, Beatrice's feelings about love are strong and opposing. When she states "Not till God make men of some other mettle than earth" she assumes that her desired partner does not exist. Hero and Ursula believe that Benedick would make a good husban d for Beatrice and as a result of this, they plan a scheme to bring about love between Beatrice and Benedick. Hero and Ursula accomplish their scheme in Act III Scene i. Their scheme is concluded by means of discussing that they have heard that Benedick loves Beatrice greatly. Beatrice overhears this and thinks the combination of her and Benedick’s wit and intelligence would make a successful match. Beatrice displays her free will when making this decision.

My Life on Togetherness Essays -- family, parents, religion, freedom

I belong to a family that is characterized by being quite Post-modern. Talking about my parents, they do both participate in the public sphere. They both work in two separate domains, having consequently more freedom in the public sphere they encounter as a daily basis. For example, my mother works as a teacher, so she comes across mostly teachers and professors, and my father works as an architect, so he encounters mostly architects, without corrupting one another by endless phone calls or whatever. So Togetherness, which is the opposite of autonomy, is not really seen. What I described before is how things go between my parents, but I did not yet talk about the situation between my parents and us, their children. Our freedom grows proportionally with our age. When we were young, we weren't restricted to communicate only to the family members. In school, we were free to meet and talk to whoever we want. Of course they do warn us of the bad persons we might encounter, but we were feeling comfortable. As we grew up, the relationship between us start to be friendlier. Trust is there, which I believe is one of the most important criteria that should exist within a relationship, happiness is there, everything is fine. However, a criterion of togetherness was missing, which is the freedom of choice. Choices available to me were those that my parents provided me with. For example, one of my goals in my Life was, and still is, to become a Formula 1 racing driver, but unfortunately I wasn't able to achieve that, because my parents simply weren't able to assimilate the idea that I drive a "dangerous", fast car. I know it's too late now, but my dream is still to drive a Formula 1 car, at least before I pass away. Anyway, my family is the ... ...rnal or external. when everything's ticking along just fine, I don't think most people give much thought to it; evidence of that can be found in the confusion with which most people will respond to questions like, "what makes someone a man/woman?", or, "how do you know that you're a woman/man?", without referring to biology. But as soon as something's not quite right, whether that's an internal feeling of incongruence or an external challenge to one's gender, suddenly it becomes very important indeed. Finally it does work for me, and I am not emphasizing any counter ideas toward girls. I don't have any problem with them; each of us is different at several levels. I can have positive criteria by being a boy and my sister, for example, can also have positive criteria that I do not have by being a girl. I was born a male; I will grow as a male, and will die as a male.

Scm in Petroleum Industry

International Journal of Global Logistics & Supply Chain Management. Vol. 1, No. 2, 1 November 2006, 90 – 97. Supply Chain Management in the Petroleum Industry: Challenges and Opportunities RAED HUSSAIN Department of Quantitative Methods & Information Systems, Kuwait University, Kuwait TIRAVAT ASSAVAPOKEE Department of Industrial Engineering, University of Houston, Texas, U. S. A. BASHEER KHUMAWALA Department of Decision and Information Sciences, University of Houston, Texas, U.S. A. Supply chain management in the petroleum industry contains various challenges, specifically in the logistics area, that are not present in most other industries. These logistical challenges are a major influence on the cost of oil and its derivatives. However, opportunities for cost savings in logistics still do exist. Giant oil and petrochemical companies are undertaking a â€Å"swap† practice that saves companies millions of dollars.The objective of this paper is to shed some light on the supply chain challenges and opportunities in the petroleum industry and on swap practices that have long been employed by petroleum industry’s giants around the world, such as BP, BASF, Honeywell, Nova, and much more, yet have long been ignored in the operations management literature. Keywords: Supply Chain Management, Logistics, Petroleum Industry, The Swap Practice 1.Introduction The steadily increasing global demand for oil and its derivatives such as petrochemicals has enabled companies providing these products to reach more customers and increase their market share and profitability. This boom in global demand along with the ease of international trade and the inflexibility1 involved in the petroleum industry’s supply chain has made its management more complex and more challenging (Coia, 1999; Morton, 2003). Despite the importance of supply chain management and its growing complexity, the petroleum industry is still in the development stage of efficiently managin g their supply chains.In fact, according to Steve Welsh, a managing director of the College of Petroleum and Energy Studies at the University of Oxford, the oil and petrochemical industry’s insight into the supply chain is still in its infancy (Schwartz, 2000). However, even with the inflexibility and complexity involved in the industry’s supply chain, there is a lot of room for improvement and cost reduction, specifically in its logistics area. Werner Paratorius, president of BASF’s petrochemicals division said â€Å"Supply chain management is the backbone of a business where logistics costs can be greater than manufacturing costs† (Whitfield, 2004, p. R12).By the end of 2004, world-wide demand for oil reached 75 million barrels per day and has been projected to increase at a rate of 2 percent per year over the next ten years. For example, China’s demand for energy alone is expected to grow at a rate of 4. 5 percent per year for the next five year s and reach four million barrels by 2010. However, due to recent political unrest in the Middle East, which is the largest oil producing region, sustainable oil supply has become highly unpredictable. Oil and petrochemicals companies are forced to maintain higher safety stocks and search for alternative sources of supplies (Ikram, 2004).Inflexibility in the supply chain is the constraints involved along the chain, such as long lead-times, manufacturing capacity, and limited means of transportation, that are hard to change. 1 Commodities such as oil, gas, and petrochemicals require specific modes of transportation such as pipelines, vessels or tankers, and railroads. These commodities are produced in specific and limited regions of the world, yet they are demanded all over the globe since they represent an essential source of energy and raw material for a large number of other industries.Several weeks lead-time from the shipping point to the final customers’ location is very c ommon in this type of industry. For example, it takes five weeks for the Persian Gulf’s oil to make its way to the United States and up to another three weeks for it to be processed and delivered (Schwartz, 2000). Opening new production sites or distribution centers closer to dispersed customers is one way to reduce the lead time and transportation costs. However, the acquisition of such facilities in the oil and petrochemical industries, if feasible, is typically very costly and often results in higher inventory and operating costs (Hebert, 2004).Red Cavaney, president of the American Petroleum Institute, said â€Å"Most companies are unlikely to undertake the significant investment needed to even begin the process† (Hebert, 2004) These factors are pushing oil and petrochemicals companies to either absorb the increase in costs or pass the costs on to customers who are already facing increasing prices. Companies therefore have recognized that improved supply chain effi ciencies represent a huge area for cost savings, specifically in the logistics area; they are estimated to be an average between 10 and 20 percent of revenues (Hamilton, 2003).Also, companies believe that the supply chain in which they participate as customers and suppliers is what creates competition rather than individual companies (Whitfield, 2004; Lange, 2004; Morton, 2003; Bianchi, 2003; Collins, 1999; Coia, 1999). Despite the importance of the petroleum industry in our daily life and the operational challenges it involves, unfortunately the topic has received very little attention in operations and supply chain management literature. The objective of this paper, therefore, is to shed some light on challenges and opportunities in the petroleum industry’s supply chain management.Our discussion will focus on a practice that has been saving companies millions of dollars but has long escaped the attention it deserves from academia. The practice is referred to as systematic c ooperative reciprocal barter (also called â€Å"swaps†) (Haberman, 2002). 2. Supply Chain Management in the Petroleum Industry Before getting into any further discussion of supply chain management in the petroleum industry, it is important to first clarify the industry background and its production process. A brief explanation is available in the appendix. The supply chain of the petroleum industry is extremely complex compared to other industries.It is divided into two different, yet closely related, major segments: the upstream and downstream supply chains. The upstream supply chain involves the acquisition of crude oil, which is the specialty of the oil companies. The upstream process includes the exploration, forecasting, production, and logistics management of delivering crude oil from remotely located oil wells to refineries. The downstream supply chain starts at the refinery, where the crude oil is manufactured into the consumable products that are the specialty of ref ineries and petrochemical companies.The downstream supply chain involves the process of forecasting, production, and the logistics management of delivering the crude oil derivatives to customers around the globe. Challenges and opportunities exist now in both the upstream and downstream supply chains. 3. Challenges in the Supply Chain 3. 1. Logistical Challenges The logistics network in the petroleum industry is highly inflexible, which arises from the production capabilities of crude oil suppliers, long transportation lead times, and the limitations of modes of transportation.Every point in the network, therefore, represents a major challenge (Jenkins and Wright. 1998). The oil and petrochemical industries are global in nature. As a result, these commodities and products are transferred between locations that are—in many cases—continents apart. The long distance between supply chain partners and slow modes of transportation induce not only high transportation costs an d in-transit inventory, but also high inventory carrying costs in terms of safety stocks at the final customer location.The great distances between supply chain partners present a high variability of transportation times that can hurt suppliers in terms of service levels and final customers in terms of safety stock costs. Moreover, the transportation process is carried out either by ships, trucks, pipelines, or railroads. In many instances, a shipment has to exploit multiple transportation modes before reaching the final customer’s location. â€Å"Very few industries 91 deal with that kind of complexity in shipping,† said Doug Houseman, a senior manager at the consulting firm Accenture (Morton, 2003, p. 1). Such constraints on transportation modes in this type of industry induce long lead times from the shipping point to the final customers’ location compared to other industries. Hence, considering the amount of inflexibility involved, meeting the broadening pro spect of oil demand and its derivates while maintaining high service-levels and efficiency is a major challenge in the petroleum industry. 3. 2. Other Challenges The logistics function is only one of many areas that affect supply chain performance in the petroleum industry.Integrated process management, information systems and information sharing, organizational restructuring, and cultural reorientation are as equally important (Ikram, 2004). The need for integrated processes all the way from procurement of raw materials to the delivery of the final product is crucial for a company’s success. â€Å"Manufacturing efficiency alone does not ensure a competitive advantage anymore,† said Paratorius, president of BASF’s petrochemicals division (Whitfield, 2004, p. R12). The industry lags behind in using integrated planning across the supply chain.This type of disintegration in the supply chain can increase the cost of acquiring crude oil, which will eventually affect gas prices for consumers (Coia, 1999). Also, due to the globalization of the petroleum industry supply chain, sophisticated information technology is essential for smooth information flow considering the complexity of the logistics network in such an industry. Companies’ relationships in supply chain networks are directly related to the effective use of information technology (Guimaraes, Cook, and Natarajan, 2002).A data flow diagram (DFD) was developed by Hull in 2001 to improve supply chain information flow reliability of the Alaskan North Slope Oil supply chain. The study showed that using the DFD helped to realize the importance of the relationship between scheduling and dispatching (synchronization). By using the DFD to examine the information flow, overall supply chain efficiency was improved and distortion,2 which is greatly related to supply chain structure, was greatly reduced.Moreover, the generic DFD developed offers a template for modeling any supply chain or logi stics activity, whether it is a push, pull, or a hybrid push/pull system (Hull, 2001). Sophisticated information technology is also essential for petroleum industries due to security needs. Petroleum companies ship a great deal of hazardous products, and supply chain partners (suppliers and customers) must be aware of the locations of each shipment at any point in time. According to Houseman at Accenture, chemical companies are considering wireless technology to track their shipments (Morton, 2003).Another challenge in the petroleum industry supply chain is the attitude and anxiety regarding collaboration and information sharing between supply chain partners. While collaboration and information sharing represent a crucial factor for supply chain efficiency, â€Å"companies in the petroleum industry are sometimes cautious when it comes to sharing their demand/costs information,† said Salah Al-Kharraz, a supply chain director at Equate Petrochemicals (Personal Communication, 23 December 2004). This type of parsimony regarding collaboration and sharing demand/costs information can waste opportunities for costs saving.Improved supply chain efficiency in the petroleum industry, therefore, needs a new philosophy in collaboration, even if this means working with competitors. â€Å"Collaboration, information sharing, and asset optimization require the greatest mind change because chemical producers and LSPs would have to work with their competitors, as well as with other operators in the supply chain,† said Phil Browitt, CEO of AGILITY, a logistics firm (Young, 2005, p. 10). The acquisition of sophisticated information technology, although necessary, can only do so much if it is not supported by a cultural change.The next section will discuss an opportunity, specifically a practice that has been saving companies millions of dollars in the petroleum industry’s supply chain, yet has not received the attention it deserves in academia. 4. Opportunitie s in the Supply Chain and Swap Practices In an effort to manage their supply chain and reduce costs, oil and petrochemical companies are outsourcing3 their logistics4 functions. As the trend in outsourcing has grown, these companies have become increasinglyDistortion in Hull’s paper is the â€Å"bullwhip effect† established by the well-known beer game developed by Sterman (1989) and Senge (1990). 3 Outsourcing takes place when an organization transfers the ownership of a business process to a supplier. 92 2 reliant on the services of third-party5 logistics companies for managing their supply chains (Collins, 1999). Companies in the petroleum industry, however, took the outsourcing idea one step further and found that one way of outsourcing their logistics functions is to ally and collaborate with competitors.This form of collaboration is referred to as a systematic cooperative reciprocal barter (also called â€Å"swaps† or â€Å"exchanges†) of supplies, a ssets, market share, or even the entire business among competitors (O’Dwyer, 1988; Robert, 1995; Gain, 1997; Alperowicz, 2001; Sim, 2002). However, despite the significant advantages this practice has generated for companies, a defined model for making such decisions does not exist. The subject has barely received any attention in the operations management literature.Currently, no specific method has been adopted to determine when companies should attempt to make swap decisions. An interview with supply chain directors in two international petrochemical companies that have been involved in swapping with their competitors for the past few years revealed that the only methods used are judgmental6 methods and spreadsheets. Although judgmental approaches may improve accuracy in many decision-making problems, they should not be the only methods employed. The use of only such approaches cannot guarantee an optimal solution. 4. 1.The Swap Practice In a commodity-type industry such a s oil and petrochemicals, the source of the commodity is often of no interest to the final customer as long as the commodity adheres to its required specifications and the delivery of that commodity is made by the promised due date. Therefore, competing oil and petrochemical companies form supply chain alliances when delivering commodities to customers in order to reduce transportation and inventory costs and improve customer service. In return, cost savings for transportation in the overall supply chain are shared among participating companies.This form of collaboration is referred to as shipment swapping. This kind of collaboration with competitors creates a shared solution to common supply chain obstacles and is predicted to be the â€Å"Next Big Thing† (Morton, 2003). The swapping technique is currently applied by oil and petrochemical companies around the world in all of its different forms: asset swapping, business swapping, and shipment swapping. However, because of th e absence of any general analytical discussion of swap practices in the literature, we first provide examples from the oil and petrochemicals industry for each form of swap practice being used.This is done to illustrate the advantages of collaboration among competitors. Due to brevity, only the more recent examples of such practices are discussed here. 4. 2. Asset Swapping In 2001, BP became the largest olefins producer in Germany after an asset swap with E. ON, a German utility company. Following the deal, BP took over Veba Oel, E. ON’s oil, refining, and petrochemicals business, and E. ON bought BP’s 25 percent stake in Ruhrgas, Germany’s largest gas distributor. The deal gave BP 2. 1 million tons of ethylene7 capacity in Germany, which is about 40 percent of the country’s total, and ave E. ON control of one of the largest gas distribution networks in Germany (Milmo, 2001). In 2003, BASF, a leading German chemical company, and Honeywell signed a long-te rm deal under which BASF will supply Honeywell with nylon chips and Honeywell will supply BASF with specialty nylon and nylon co-polymers8. Since Honeywell has a strong presence in electrical and tooling applications and BASF is strong in the automotive sector, the deal has benefited both companies in their business specialties. For example, in 2003 the deal raised BASF’s market share in nylon from 9 percent to 35 percent and gaveLogistics is the process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw material, in-process inventory, finished goods, and related information from point of origin to point of consumption to conform to customer requirements (Council of Logistics Management, 1998, p. 2). 5 Third-party logistics is the use of an outside company to perform all or part of the firm’s materials management and product distribution function. 6 A judgmental method is the use of people’s opinions when making deci sions. 7 Ethylene is a colorless gas at room temperature.At very low temperatures, it is a liquid. It is used as a refrigerant and in welding and cutting metals. It is also used to manufacture ethylene oxide, mustard gas, and other organics and to accelerate the ripening of fruits. 8 When a polymer chain-like molecule is made by linking only one type of small molecule together, it is called a homopolymer. When two different types of molecules are joined in the same polymer chain, it is called a co-polymer. 93 4 Honeywell the chance to concentrate on carpet, apparel, and fabrics for automotive upholstery. Honeywell plans to eventually sell the nylon business (Sim, 2003).More recently, the Kuwait Petroleum Company (KPC) and the Iraqi Oil Institute (SOMO) signed a comprehensive memorandum of understanding related to exchanges of shipments of Kuwaiti benzene and diesel with Iraqi natural gas. The swap will be implemented in two phases. Thirty-five million cubic feet of Iraqi natural gas will be supplied daily to Kuwait for about one year at an estimated cost of U. S. $24 million during the first phase. Then, 165 million cubic feet of natural gas will be supplied daily to Kuwait for about two years at an estimated cost of U. S. 700 million dollars during the second phase. Meanwhile, Kuwait will supply Iraq with oil derivatives, benzene, and diesel, ranging from two to three million liters of benzene and 1. 3 to 1. 5 million liters of diesel daily (Alshalan, 2004). The outcome of this agreement is expected to significantly benefit both countries. Kuwait produces a relatively modest volume of natural gas (around 293 billion cubic feet––Bcf––in 2002), the vast majority of which is â€Å"associated gas. †9 Prior to the 1990-1991 Gulf War, Kuwait received significant volumes of natural gas from Iraq.The gas came from Iraq’s southern Rumaila field through a 40-inch, 100-mile, 300 Mmcf/d pipeline to Kuwait’s central manifol d at Ahmadi. The gas was used for the production of petrochemicals, electricity, and water through desalination processes. With such uses of natural gas, the Kuwaiti-Iraqi swapping deal could free up a substantial amount of oil to Kuwait, possibly 100,000 barrels per day (bbl/d) for export by 2006, which is presently used for similar purposes. For example, 65,000 bbl/d of fuel oil is currently used to generate electric power in Kuwait.Throughout most of the 1990s, Iraq generally did not have access to the latest state-of-the-art oil industry technology. Saybolt International reported that Iraq oil companies, NOC and SOC, were able to increase their oil production through the use of short-term techniques not generally considered acceptable in the oil industry (i. e. , â€Å"water flooding,† the injection of refined oil products into crude reservoirs). In addition, a U. N. report in June 2001 stated that Iraqi oil production capacity would fall sharply unless technical and infr astructure problems were addressed.Moreover, Iraq’s southern oil industry was decimated in the 1990-1991 Gulf War, with production capacity falling to 75,000 bbl/d in mid-1991. The Gulf War resulted in the destruction of (a) gathering centers and compression/degassing stations at Rumaila; (b) storage facilities, including the 1. 6 million bbl/d (nameplate capacity) Mina al-Bakr/Basra export terminal; and (c) pumping stations along the 1. 4 million bbl/d (pre-war capacity) Iraqi Strategic (North-South) Pipeline. Seven other sizable fields remain damaged or partially mothballed.These include Zubair, Luhais, Suba, Buzurgan, Abu Ghirab, and Fauqi. Generally speaking, oil field development plans were put on hold following Iraq’s invasion of Kuwait, with Iraqi efforts focused on maintaining production at existing fields. At the present time, problems with Iraq’s refineries––stemming largely from post-war looting and sabotage in addition to power outagesà ¢â‚¬â€œÃ¢â‚¬â€œcontinue to force the country to import gasoline, diesel, liquid petroleum gas (LPG), and other refined products from neighboring countries (Iran, Jordan, Kuwait, Syria, and Turkey).As of October 2004, Oil Minister Ghadban said that Iraqi gasoline imports were running around 40,000 bbl/d (mainly by truck), costing the country U. S. $60 million per month in direct costs. This does not include the additional cost of steep government subsidies on the consumer price of gasoline, which runs around 10 cents per gallon. It is estimated that overall direct and indirect oil subsidies cost Iraq U. S. $8 billion per year, with no indication as to when this problem might be resolved (Country Analysis Brief, March 2004).As a result, both countries are expected to benefit from the swapping agreement; Iraq will secure current and future needs of oil, benzene, and diesel and Kuwait will use the natural gas for the production of petrochemicals, electricity, and water while freeing up a substantial amount of oil for exportation. 4. 3. Swapping Businesses In 1997, PPG Industries, a specialty chemical company, exchanged its surfactants10 business for BASF’s packaging coatings business. This swap resulted in the growth of PPG’s portfolio and led to the expansion of geographic opportunities for the coating business.Moreover, this swap enabled PPG to become one of the world’s largest suppliers of package coating for food, aerosols, and other container and packaging applications. On the other hand, this business swap made it possible for BASF to expand its surfactants offerings for the food, personal care, and coatings industries (Gain, 1997). 9 10 Associated gas is found and produced in conjunction with oil. Surfactants are also known as wetting agents and may be liquids or powders. Surfactants are used in aqueous cleaners to provide detergency, emulsification, and wetting action. 4 Similarly, BP swapped its polyethylene glycol11 (PEG) ether brake fluid business for the butyl glycol ether12 (BGE) solvents operation belonging to Clariant, a Swiss specialty chemical company. However, this swapping deal was restricted only to the exchange of customer lists and contracts. No manufacturing units, staff, or cash transfer between the two companies took place. Clariant discontinued production of BGE at Gendorf, Germany, and BP discontinued manufacturing brake fluids at Lavera.The deal broadened the range of products that Clariant supplied to the automotive industry and enabled BP to better utilize the Lavera BGE plant (Alperowicz, 2001). 4. 4. Swapping Shipments During 2000, a swapping arrangement of liquid natural gas took place among Spain, Algeria, and Trinidad. Spain’s Gas Natural became the first European LNG buyer to resell LNG to the U. S. market. This gas had been sold to Gas Natural by Atlantic LNG of Trinidad. At the same time, Algerian LNG dedicated to the United States was delivered to Spain, reducing shipping cha rges for all parties.In 2001, these swaps developed into a more permanent arrangement with the signing of a contract between Sonatrach of Algeria, Gas Natural of Spain, Tractebel LNG North America in the United States, and Distrigas of Belgium. Companies with interests on both sides of the Atlantic gained an advantage over others, enabling them to react faster to any market opportunity (Gandolphe, 2002). Moreover, Nova Chemicals, a Canadian chemical company, and BASF entered a swap deal for styrene13 in which Nova supplied BASF in North America and BASF supplied Nova in Europe.This agreement provided each company with a stable supply of styrene without committing either one to significant investments. The deal also gave each company a low-cost styrene position for their PS (Sim, 2002). Another swap example is between world-class Indian polymer manufacturers Haldia Petrochemicals Ltd. (HPL) and GAIL Ltd. , India’s principal gas transmission and marketing company. The two compa nies entered into a product swapping and sharing arrangement that forced other polymer sellers in eastern and northern India to retreat from the market.Under this swapping agreement, both companies gained substantial savings on freight costs. Gail supplied HPL’s customers in northern India from its plant in Uttar Pradesh, and HPL served Gail’s customers in eastern and southeastern Asia by supplying them from the Haldia plant (Saha, 2003). 5. Conclusion More efficient and cost effective supply chain practices in the petroleum industry represent important factors for maintaining continuous supplies of crude oil, the reduction of lead times, and lowering of production and distribution costs.Due to the inflexibility involved in the petroleum industry’s supply chain network, logistics represent a great challenge. However, it is only one of several challenging factors. Integrated process management, information systems and information sharing, organizational restructu ring, and cultural reorientation are equally important. Despite the great challenges in the petroleum industry’s supply chain, opportunities for improvements and cost savings do exist along the supply chain. One major area for improvement and cost savings lies in the logistics function.Companies in the petroleum industry have become increasingly reliant on the services of third-party logistics companies to manage their supply chains. Companies in the petroleum industry took the outsourcing idea a step further to collaborate with competitors and found shared solutions to their supply chain challenges. This form of collaboration is referred to as a systematic cooperative reciprocal barter, or swaps. Collaboration among competing companies in the form of swaps is a practice that can offer companies huge savings and introduce new opportunities.However, despite its wide use and benefits, especially in the oil and petrochemical industries, the subject has not received the attention it deserves in the operations management literature. Currently, judgmental methods and the aid of spreadsheets are the only approaches utilized when attempting swap decisions. Although great savings are realized by companies using swap practices, the 11 Polyethylene glycol is a non-toxic chemical used in a variety of products such as skin creams, toothpaste, shampoos, etc. 12 Butyl glycol ether is a widely-used solvent for many applications. 3 Styrene is a chemical molecule used in polystyrene manufacturing, the rubber industry, and the reinforced plastic industry. 95 approaches used for making such decisions cannot guarantee an optimal solution, and hence, opportunities to utilize the full capability of swap practices are not fully exploited. Therefore, the next step would be the utilization of management science techniques, presumably mathematical/simulations models. These methods will significantly enhance the capability of such forms of collaboration and will represent valuable tools for practitioners to use. . Appendix: Production Process and Industry Background Crude oil and natural gas are the raw materials of the petroleum industry. They are used for the production of petrochemicals and other oil derivatives. After the production of crude oil is complete from oil reserves located deep underground or in sea beds, the crude oil undergoes a distillation14 process. As a result of the distillation process, various fractions of the crude oil are produced, such as fuel gas, liquefied petroleum gas (LPG), kerosene, and naphtha. 5 The output of the distillation process is then provided to refineries as feedstocks. These feedstocks are first processed through cracking16 operations before they are supplied to petrochemical plants. Once the cracking process is complete, companies are able to obtain new products that serve as the building blocks of the petrochemical industry, such as olefins (i. e. , mainly ethylene, propylene, and the so-called Carbon (C) derivat ives, including butadiene) and aromatics, which include benzene, toluene, and the xylenes.After the cracking process, petrochemical products such as ethylene, propylene, butadiene, benzene, toluene, and the xylenes are then used at petrochemical plants to produce even more specialized products, such as plastics, soaps and detergents, healthcare products (such as aspirin), synthetic fibers for clothes and furniture, rubbers, paints, and insulating materials. References Alperowicz, N. (2001, August 29 – September 5). BP swap business with Clariant. Chemical Week, 163, 33. Alshalan, M. (2004, December 15). Iraqi gas to Kuwait and Kuwaiti benzene to Iraq. Alwatan, 10368/4814 – Year 43.Bianchi, M. (2003). Getting to the route. 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