An institutional approach to the role of cost accounting in regulated markets: the case of the royal soap factory of Seville (1515-1692)

Regulated markets and state-owned monopolies characterized the economies of many Southern European and Latin American territories around the end of the Middle Ages and the Renaissance. Strikingly, however, investigation into the functioning of cost accounting in such contexts has been widely neglected in accounting research. In this paper, we examine the role of early cost systems in regulated markets by focusing on the case of the soap production and distribution monopoly in the City of Seville (Spain). In 1423, the King of Castille granted the soap monopoly to the Duke of Alcalá as a reward for his war achievements, but the decision on the price of soap rested in the hands of the local government. Disputes between the Duke of Alcalá and the local government (the parties) about the fair price of a pound of soap were resolved through tests that replicated the soap production process and determined its cost through complex calculations. Drawing on the insights of institutional sociology, we found that the test and its accompanying cost calculations constituted an institution that legitimized the parties both in the public opinion and before the King. Further, our data revealed that the parties engaged in active agency before the King of Spain to shape in their favor the constitutive elements of the institution, such as the use of purpose-purchased or stored materials in the soap test; incorporation into the total cost the rents that would have been earned if the factory buildings were leased; and the salaries of some employees (i.e., slaves, factory administrator and priest)

Results of Environmental Scanning Applied to the Design of a Deer Management Decision Support System (DSS) For The United States and California

Using freely available internet search tools for environmental scanning, information related to deer management was collected, categorized, and evaluated with the goal of providing public decision support. Key issues raised in the public debate discovered by the search are addressed with relevant information formatted as output for a decision support system – dashboard elements. A graph addresses contradictory reports about the current direction of the deer population; the trend since 2006 appears to be down. Another graph illustrates the approximate longterm population trend; the current U.S. white-tailed deer population is about the same as in 1500. A table summarizes profiles of state deer issues and strategies. Only eleven states are trying to reduce their deer population. A graph illustrates the rise and fall of the California population, the most dramatic population decline in the U.S. over the past 100 years. Hunting pressure and herd demographic management are found to be related to the decline, making these candidate variables for attention in the decision support system. This case application is designed to illustrate methods the author has learned in creating a variety of decision support applications for technology companies

Evaluation of the changes in working limits in an automobile assembly line using simulation

The aim of the work presented in this paper consists of the development of a decision-making support system, based on discrete-event simulation models, of an automobile assembly line which was implemented within an Arena simulation environment and focused at a very specific class of production lines with a four closed-loop network configuration. This layout system reflects one of the most common configurations of automobile assembly and preassembly lines formed by conveyors. The sum of the number of pallets on the intermediate buffers, remains constant, except for the fourth closed-loop, which depends on the four-door car ratio (x) implemented between the door disassembly and assembly stations of the car body. Some governing equations of the four closed-loops are not compatible with the capacities of several intermediate buffers for certain values of variable x. This incompatibility shows how the assembly line cannot operate in practice for x0,97 in a stationary regime, due to the starvation phenomenon or the failure of supply to the machines on the production line. We have evaluated the impact of the pallet numbers circulating on the first closed-loop on the performance of the production line, translated into the number of cars produced/hour, in order to improve the availability of the entire manufacturing system for any value of x. Until the present date, these facts have not been presented in specialized literature. © 2012 American Institute of Physics

Supplier Portfolio Selection and Optimum Volume Allocation: A Knowledge Based Method

Selection of suppliers and allocation of optimum volumes to suppliers is a strategic business decision. This paper presents a decision support method for supplier selection and the optimal allocation of volumes in a supplier portfolio. The requirements for the method were gathered during a case study that was conducted within the logistics unit of Shell Chemicals Europe. The proposed method is based on the classical view by Sprague and Carlson of sequence and interaction of the different phases of decision making in a decision support system and supports Kraljic’s portfolio approach for supplier management. This method aims to help the managers in making decisions on the allocation of volumes to suppliers while simultaneously trying to satisfy conflicting objectives of improvement in benefit and reduction in risk. A mathematical model to struc-ture the problem is presented, knowledge elicited from the managers is used to parameterize the mathemati-cal model and a multi-objective, hierarchical optimization procedure produces ‘trade-off’ outputs. The man-agers can also conduct interactive post optimization ‘what-if’ analysi