Product recalls: The effects of industry, recall strategy and hazard, on shareholder wealth

The purpose of this paper is to provide insights into the effects of product recalls on shareholder wealth of manufacturing firms in different supply chains. Previous research examining this phenomenon is largely uni-sectorial and/or does not consider the interplay of hazard, recall strategy and sector. By utilizing the event study method, this study examines investors\u27 reactions to key product recall characteristics: industry, recall strategy and hazard level, on a cross-industry sample of 296 product recall announcements. The results show a significant negative reaction of share values to product recalls and significant differences between industry type and hazard levels. More regulated and stringent supply chains, such as the automotive and pharmaceutical, showed statistically significant losses in share price. The results show that industry sector and level of hazard associated with defective products are significant factors impacting the shareholder wealth of manufacturing firms. Contrary to some studies, the impact of recall strategy was not confirmed, although proactive recall strategies led, in some cases, to an increase in share price. Further research would benefit from more detailed investigation of recall strategies on the value of companies in specific sectors, particularly ones which are susceptible to frequent and costly product recalls

The Herschel-SPIRE instrument and its in-flight performance

The Spectral and Photometric Imaging REceiver (SPIRE), is the Herschel Space Observatory`s submillimetre camera and spectrometer. It contains a three-band imaging photometer operating at 250, 350 and 500 μm, and an imaging Fourier-transform spectrometer (FTS) which covers simultaneously its whole operating range of 194–671 μm (447–1550 GHz). The SPIRE detectors are arrays of feedhorn-coupled bolometers cooled to 0.3 K. The photometer has a field of view of 4´× 8´, observed simultaneously in the three spectral bands. Its main operating mode is scan-mapping, whereby the field of view is scanned across the sky to achieve full spatial sampling and to cover large areas if desired. The spectrometer has an approximately circular field of view with a diameter of 2.6´. The spectral resolution can be adjusted between 1.2 and 25 GHz by changing the stroke length of the FTS scan mirror. Its main operating mode involves a fixed telescope pointing with multiple scans of the FTS mirror to acquire spectral data. For extended source measurements, multiple position offsets are implemented by means of an internal beam steering mirror to achieve the desired spatial sampling and by rastering of the telescope pointing to map areas larger than the field of view. The SPIRE instrument consists of a cold focal plane unit located inside the Herschel cryostat and warm electronics units, located on the spacecraft Service Module, for instrument control and data handling. Science data are transmitted to Earth with no on-board data compression, and processed by automatic pipelines to produce calibrated science products. The in-flight performance of the instrument matches or exceeds predictions based on pre-launch testing and modelling: the photometer sensitivity is comparable to or slightly better than estimated pre-launch, and the spectrometer sensitivity is also better by a factor of 1.5–2

Supply chain dynamics after the Covid-19 pandemic and stock market performance: Evidence from the US

Supply chain risk is a strategic issue for managing multinational companies, and Covid-19 has shown the relevance of this type of risk for the firm's survival probability. The market may perceive the choice of replacing some of the main customers or suppliers as an increase or a decrease of the risk based on the features of the new supply chain members, and markets tend to penalize companies that increase their exposure to unaffordable events. During the pandemic, many supply chains suffered from glitches and companies were obliged to redefine their network by selecting their new strategic customers and/or suppliers. The paper evaluates the supply chain composition strategies of a set of multinational companies based in the US during the last decade. It highlights the differences in supply chain management behavior before and during the pandemic. Data collected allow testing the impact on the stock market performance of modifying the supply chain network by adding new members that may have a different level of risk. Results show that the market reaction to supply chain updates changed after the Covid-19, and nowadays there is greater attention on the credit risk of the new companies entering the supply chain

Critical Management Issues for Implementing RFID in Supply Chain Management

The benefits of radio frequency identification (RFID) technology in the supply chain are fairly compelling. It has the potential to revolutionise the efficiency, accuracy and security of the supply chain with significant impact on overall profitability. A number of companies are actively involved in testing and adopting this technology. It is estimated that the market for RFID products and services will increase significantly in the next few years. Despite this trend, there are major impediments to RFID adoption in supply chain. While RFID systems have been around for several decades, the technology for supply chain management is still emerging. We describe many of the challenges, setbacks and barriers facing RFID implementations in supply chains, discuss the critical issues for management and offer some suggestions. In the process, we take an in-depth look at cost, technology, standards, privacy and security and business process reengineering related issues surrounding RFID technology in supply chains

An Exploratory Study of Patient Falls

Debate continues between the contribution of education level and clinical expertise in the nursing practice environment. Research suggests a link between Baccalaureate of Science in Nursing (BSN) nurses and positive patient outcomes such as lower mortality, decreased falls, and fewer medication errors. Purpose: To examine if there a negative correlation between patient falls and the level of nurse education at an urban hospital located in Midwest Illinois during the years 2010-2014? Methods: A retrospective crosssectional cohort analysis was conducted using data from the National Database of Nursing Quality Indicators (NDNQI) from the years 2010-2014. Sample: Inpatients aged ≥ 18 years who experienced a unintentional sudden descent, with or without injury that resulted in the patient striking the floor or object and occurred on inpatient nursing units. Results: The regression model was constructed with annual patient falls as the dependent variable and formal education and a log transformed variable for percentage of certified nurses as the independent variables. The model overall is a good fit, F (2,22) = 9.014, p = .001, adj. R2 = .40. Conclusion: Annual patient falls will decrease by increasing the number of nurses with baccalaureate degrees and/or certifications from a professional nursing board-governing body

Inventory Signals

How does operational competence translate into market value, when firms cannot credibly communicate their competence to the market? I consider the example of inventory and fill rates. When the market sees a high-inventory firm, it cannot tell whether the inventory is due to incompetence or a strategy to enhance fill rate. Firms might decide to signal their competence to the market by carrying less inventory. I show conditions for separating and pooling perfect Bayesian equilibria. I also provide empirical evidence for this theory that inventory has a signaling role. The theory could potentially provide a framework that describes one way in which a range of operational competences such as purchasing and outsourcing, translate to market value. Practically, it has implications for firms, such as how to strategically communicate to the market, reward managers, or even whether to go public and be subject to market pressures.Inventory; signaling; operations management; asymmetric information

Inventory Signals

Among practitioners, inventory is often thought to be the root of all evil in operations management. The stock market hates it, the media abhors it, and managers have come to fear it. But high inventory levels can also be the result of strategic buying and high-availability strategies. The problem is that when the market sees lots of inventory, it cannot tell whether it is because of poor or smart operations. We hypothesize that inventory has a signaling role. In our model, publicly- traded firms use inventory levels to signal their operational competence to the market. There is a separating equilibrium that leads some firms to maintain inventory levels below what their capability could achieve. We offer this as one explanation why, for example, stock-outs are pervasive even among operationally competent firms. We provide empirical evidence for the assumptions behind this inventory signaling hypothesis: (1) the market cannot tell the difference between “good” and “bad” inventory; and (2) the counterfactual: the market punishes firms when it can tell that their inventory is bad, such as when they write off supplies. Consistent with these assumptions, we find that inventory levels do not explain firm value. And on average, stocks suffer an abnormal negative return of 7% in the month of announcing inventory write-offs.Inventory, signaling, operations management, asymmetric information

Natural disasters, PC supply chain and corporate performance

Purpose – This paper provides quantitative evidence of natural disasters’ effect on corporate performance and studies the mechanisms through which the supply chain moderates and mediates the link. Design/methodology/approach – Using two major natural disasters as quasiexperiment, namely the 2011 Japanese earthquake-tsunami (JET) and Thai flood (TF), and data over the period 2010Q1-2013Q4, effect of these events on end assemblers’ performance is studied, with a focus on the personal computer (PC) supply chain. The moderating influence of delivery and sourcing – as supply chain flexibility and agility – are examined through end assemblers’ and suppliers’ inventory. The suppliers’ mediating role is captured as disruption in obtaining PC components through their sales. Findings – Only JET had any negative effect, further quantified as short-term and long-term. The TF instead portrays an insignificant but positive aftermath, which is construed as showing learning from experience and adaptability following JET. Inventory matters, but differently for the two events, and suppliers only exhibit a moderating influence on the assemblers’ disaster-performance link. Originality/value – Natural disasters, as catastrophic vulnerabilities, are distinct from other vulnerabilities in that they are hard to predict and have significant impact. Since little is known about the impact of natural disasters on firm performance and how supply chain mechanisms moderate or mediate their impact, they should be distinctly modelled and empirically studied from other vulnerabilities. This paper sheds light on supply chain resilience to such events with the role of dynamic capabilities