An integrated approach to inventory and flexible capacity management subject to fixed costs and non-stationary stochastic demand

In a manufacturing system with flexible capacity, inventory management can be coupled with capacity management in order to handle fluctuations in demand more effectively. Typical examples include the effective use of temporary workforce and overtime production. In this paper, we discuss an integrated model for inventory and flexible capacity management under non-stationary stochastic demand with the possibility of positive fixed costs, both for initiating production and for using contingent capacity. We analyze the characteristics of the optimal policies for the integrated problem. We also evaluate the value of utilizing flexible capacity under different settings, which enable us to develop managerial insights. © 2008 The Author(s)

A Theoretical And Empirical Investigation Of The Impact Of Labor Flexibility On Risk And The Cost Of Equity Capital

This paper analytically and empirically investigates the linkage between labor costs and a firm’s income volatility, equity risk, and cost of capital. While the relationship between labor costs and the firm’s cost of capital under uncertainty conditions is important, there has been little research examining this issue. While we control for fixed labor costs, we focus on labor flexibility effects as the U.S. temporary staffing sales for 2005 totaled $69.5 billion, 8.5% more than in the previous year (American Staffing Association, 2007). Within the Capital Asset Pricing Model (CAPM) framework, we demonstrate analytically and empirically that labor flexibility reduces income volatility, equity risk and cost of capital in the service industry. However, we find that labor leverage has no impact on income volatility, and increases equity risk and cost of equity capital. These results suggest that managers can structure labor costs to minimize the firm’s risk and maximize shareholder value

Contingent Labor Contracting Under Demand and Supply Uncertainty

Firms increasingly use contingent labor to flexibly respond to demand in many environments. Labor supply agencies are growing to fill this need. As a result, firms and agencies are engaging in long-term contracts for labor supply. We develop mathematical models of the interaction between firms and labor supply agencies when demand and supply are uncertain. We consider two models of labor supply uncertainty, termed productivity and availability uncertainty, and study how each affects the nature of the contracts formed. These models reflect two major roles played by the labor supply agency. In the case of productivity uncertainty we find that it is possible to construct a contract that coordinates the firm and agency hiring in an optimal way. In contrast, we show that in environments characterized by availability uncertainty, optimal contracts are not possible. However, there is a large range of contract parameters for which both parties would benefit from a contract. We analyze these and discuss the trade-offs that should be considered in contract negotiation.Labor Supply, Contract Analysis, Stochastic, Staffing Strategy

Fatores atuantes na estratégia de gestão de mão de obra : um estudo de múltiplos casos em uma cadeia de valor

Orientador : Prof. Dr. Robson SelemeDissertação (mestrado) - Universidade Federal do Paraná, Setor de Tecnologia, Programa de Pós-Graduação em Engenharia de Produção. Defesa: Curitiba, 28/05/2015Inclui referências : f. 154-161Resumo: Após a crise econômica mundial de 2008, quando prevalecia uma política macroeconômica neoliberal, desde a crise do petróleo da década de 1970, o mundo vivencia um período de mudanças, de oscilações de mercado. A estratégia de pessoas, ou mais especificamente de mão de obra direta, da empresa é capaz de conferir a ela maior ou menor habilidade de reagir a tais mudanças. Neste contexto, avaliar a escolha da estratégia de mão de obra adotada é uma forma de contribuir para que a empresa esteja apta a reagir aos desafios que lhe são impostos. Sendo assim, o objetivo deste trabalho foi identificar fatores atuantes na estratégia de gestão de mão de obra direta em empresas de uma mesma cadeia de valor, do setor de Eletroeletrônicos. A pesquisa é aplicada, possuindo uma abordagem qualitativa, e se caracterizando como descritiva e exploratória em relação ao objeto de estudo. O instrumento proposto para o trabalho foi o estudo de múltiplos casos. Com base nas entrevistas realizadas, o trabalho demonstra que há uma lacuna entre os resultados desejados e as práticas adotadas. Assim, o estudo identifica a oportunidade que empresas brasileiras possuem para se diferenciarem utilizando estratégias e práticas que conferem uma maior consistência para resposta em ambientes de oscilação. Palavras-chaves: Estratégia de Pessoas. Flexibilidade de Mão de Obra. Sistemas de Produção.Abstract: Since 2008, when the world experienced an economic crises, after a long period in charge of a mainly new liberal economy dated to 1970's petroleum crises, the world economy has lived a constant period of changes and Market oscillation. In this context, companies need to be prepared for unstable markets and fast moves. People strategy, or specifically the workforce strategy, of a company is able to give it a higher or shorter ability to react to changes. In this context, to evaluate the workforce strategy can be a tool used by companies to better react to macroeconomic challenges. Therefore, the purpose of this study was to identify indicators that impact on the selection of the workforce strategy in a value chain. It was applied in a qualitative, descriptive and exploratory approach and has been designed as a multiple case study. Based on the data collected, it is proposed to have a gap between the results expected and the practices adopted by companies. Hence, there is a lacking opportunity on those companied to differentiate themselves in the market by adopting practices that enable a higher and consistent response to environment oscillations. Keywords: People strategy. Workforce flexibility. Production system