A New Recursive Dynamic Lot-Sizing Model with Multi-Level Discount

The optimal solution of dynamic lot-sizing problem with multi-level discount is solved by integer programming model in the past papers. However, a complex computation and a large computer memory are generated. Due to the complexity and the big computer memory, the heuristic approaches and the variable neighborhood algorithm are usually adopted in the large-scale multi-level lot-sizing problem. This paper develops a model with a recursive relation between the adjacent periods, and to obtain an optimal solution when multi-level discount is considered. Four types of the feasible policies in the Dynamic Lot-Sizing model with multi-level discount are classified to develop the recursive relations. A few properties, theorems and algorithms are developed to show the recursion between the adjacent periods. The number of addition items will significantly be reduced. The recursive algorithm can significantly decrease the computational entries, comparison entries and computer memory and improve the computation efficiency

Pay for performance in health care

This book provides a balanced assessment of pay for performance (P4P), addressing both its promise and its shortcomings. P4P programs have become widespread in health care in just the past decade and have generated a great deal of enthusiasm in health policy circles and among legislators, despite limited evidence of their effectiveness. On a positive note, this movement has developed and tested many new types of health care payment systems and has stimulated much new thinking about how to improve quality of care and reduce the costs of health care. The current interest in P4P echoes earlier enthusiasms in health policy—such as those for capitation and managed care in the 1990s—that failed to live up to their early promise. The fate of P4P is not yet certain, but we can learn a number of lessons from experiences with P4P to date, and ways to improve the designs of P4P programs are becoming apparent. We anticipate that a “second generation” of P4P programs can now be developed that can have greater impact and be better integrated with other interventions to improve the quality of care and reduce costs.Publishe

Strength in Numbers: Collaborative Procurement and Competitiveness of Craft Breweries

Purpose – This article investigates collaborative procurement as a sourcing strategy amongst competing small enterprises in an effort to reduce their material supply costs through increased efficiencies, bargaining power and economies of scale. Design/methodology/approach – A case study approach is applied to a network of breweries that are regionally clustered. Interview data from producers, suppliers and industry experts is inductively interpreted to understand the viability, organisational impact and benefits/limitations of joint procurement activities. Findings – The craft brewing industry follows a market place strategy of differentiation to achieve competitive advantage. This has supply chain implications that promote raw material diversity, which is in conflict with standardisation – a necessary factor for collective buying. Competition impacts information sharing and governance mechanism, while the structural factors of size asymmetry along and across the supply chain influence returns. These issues impact the potential economic benefits of collaborative procurement. Originality– Previous studies of collaborative procurement have been in the public sector amongst large organisations. This work focuses on coopetition in the context of small businesses to identify the viability and cost-benefit of this strategy. Research limitations/implications – Research propositions have been developed in a specific industry but are generalisable to other companies with a differentiation strategy, especially in the consumer packaged goods sector. Practical implications – Enabling conditions and constraints are captured in a framework and capability matrix, which can be used by practitioners to assess industry and product feasibility for collaborative procurement

'Pie-division' in interorganizational collaboration

Cover title. "October 1998."Includes bibliographical references (p. 49-52).Supported by grants from the International Center for Research on the Management of Technology, Lean Aircraft Initiative, and Center for Innovaiton in Product Development at the Massachusetts Institute of Technology.Sandy D. Jap

Evaluating demand planning strategy in the retail channel

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2012.Cataloged from PDF version of thesis.Includes bibliographical references (p. 77-78).In 2007 Dell began selling through the retail channel. Five years later, the retail channel is still in the early stages relative to competitors and is growing rapidly. Short product lifecycles, long lead times and a high mix of configurations create a complex supply chain. Dell had decided to introduce a Build to Plan fulfillment strategy. Dell has been known for its direct consumer strategy and the retail channel adds an additional stage in the supply chain between Dell and the end consumer. This change impacts the visibility of true demand, resulting in the bullwhip effect. Better collaborative processes such as S&OP and CPFR can improve the channel forecast accuracy, inventory levels, on time delivery, and sales revenue. The personal computer industry has become commoditized; promotions and price have a high impact on the end consumer's purchase decision. Long lead times and high price fluctuation increase uncertainty. Forecasting at a SKU level is challenging and inaccurate. An aggregated approach can reduce the variability and postpone the customization. Forecast accuracy is a key metric that can be used to improve the supply chain. To improve that metric, the appropriate forecast must be tracked and compared to the actual sales. A significant portion of any new planning process will need to account for updated software tools. These tools can help Dell's demand planners facilitate weekly conversations with retailers and ensure more accurate tracking of appropriate demand signals for forecasting. The current product portfolio that allows high flexibility to retailers does not fit the low margins of the product. Demand segmentation can identify which SKU have high volatility and offer a different supply chain strategy for those with low volumes, or spotlight high costs in offering those SKU.by Limor Zehavi.S.M.M.B.A

Revenue recognition, January 1, 2019; Audit and Accounting Guide

https://egrove.olemiss.edu/aicpa_indev/2422/thumbnail.jp

Behavioural aspects of transfer pricing in U.K. decentralised companies

The central theme of this dissertation is the organisational and behavioural dimension of the transfer pricing problem as part of the management control process in the large decentralised company. The study examines the origin and developments of the problem through an extensive review of both the theoretical literature and a large number of previous empirical investigations. It is concluded from this literature review that the divergence between the theoretical prescriptions and practice stems from a conceptual and methodological deficiency as the problem has been repeatedly studied out of its context of decentralised managerial responsibility. Hence, the present study attempts to provide explanations as to why companies have particular transfer pricing policies by locating the problem in its context, that is the decentralised company. The organisational and behavioural approach adopted relates the transfer pricing system to the company's strategy, structure and culture through a multi-disciplinary analysis. The study draws on the literature on contingency theory, economics of the firm and agency theory to analyse the intricate relationships between the transfer pricing system, the company's structure and strategy and managerial behaviour. Great emphasis is placed on the managerial implications of transfer pricing through a questionnaire and interview survey of a sample of large divisionalised companies in the U.K

Using supply chain management techniques to make wind plant and energy storage operation more profitable

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009.Includes bibliographical references (leaves 161-164).Our research demonstrates that supply chain management techniques can improve the incremental gross profits of wind plant and storage operations by up to five times. Using Monte-Carlo simulation we create and test scenarios that achieve incremental operating profits of up to 15 percent of base case revenue, and show pre-tax profit. We show that energy storage-specifically in the form of utility-scale batteries - can become economically-viable today when using supply chain management strategies under certain scenarios. To achieve these results we have built a simulation model with three data inputs. First, we synthesized the output of a 120 MW wind plant in Maine for both summer and winter seasons. Second, we simulated New England ISO market pricing data for both the Day-Ahead and Real-Time markets in summer and winter seasons using Monte Carlo simulations. Third, using actual data from two existing battery companies, we incorporated the technical and cost specifications for two energy storage facilities. All of these data inputs feature adjustable parameters so we can test various plant configurations, market volatilities and storage capabilities, among other inputs. Using our model, we then employed supply chain management network design strategies and daily operating policies to test profitability improvements on our wind plant-plus-storage operation. For example, we ran simulations for scenarios where our storage facility is either located in Maine next to our wind plant, or located in another state.(cont.) Also, since storage can make wind generation a predictable capacity resource, we ran simulations to test results in both the Day-Ahead and Real-Time markets. In addition we developed four (4) inventory management policies with dynamic input (charge) and output (discharge) strategies for our storage units. For each policy, we had to conceptualize the policy - while considering planning horizon, lead time, holding costs, shortage costs, market pricing and storage capabilities - and then build functionality in our model to execute those strategies in dynamic pricing and wind plant output environments. The outcomes of our simulation model include incremental gross profit, operating profit and pre-tax profit for each of 54 scenarios, as well as 11 management insights for wind plant and storage operators, storage technology manufacturers and New England ISO leadership.by Prashant Saran and Clayton W. Siegert.M.Eng.in Logistic

Environmental Law and Policy

This chapter provides an economic perspective of environmental law and policy with regard to both normative and positive dimensions. It begins with an examination of the central problem in environmental regulation: the tendency of pollution generators in an unconstrained market economy to externalize some of the costs of their production, leading to an inefficiently large amount of pollution. We examine the ends of environmental policy, that is, the setting of goals and targets, beginning with normative issues, notably the Kaldor-Hicks criterion and the related method of assessment known as benefit-cost analysis. We examine this analytical method in detail, including its theoretical foundations and empirical methods of estimation of compliance costs and environmental benefits. We include a review of critiques of benefit-cost analysis, briefly examine alternative approaches to analyzing the goals of environmental policies, and survey the efforts of the Federal governmental to employ these analytical methods. The chapter also examines in detail the means of environmental policy, that is, the choice of specific policy instruments, beginning with an examination of potential criteria for assessing alternative instruments, with particular focus on cost-effectiveness. The theoretical foundations and experiential highlights of individual instruments are reviewed, including conventional, command-and-control mechanisms, economic incentive or market-based instruments, and liability rules. In the economic-incentive category, we consider pollution charges, tradeable permit systems, market friction reductions, and government subsidy reductions. Three cross-cutting issues receive attention: implications of uncertainty for instrument choice; effects of instrument choice on technological change; and distributional considerations. We identify a set of normative lessons in regard to design, implementation, and the identification of new applications, and we examine positive issues, including three phenomena: the historical dominance of command-and-control; the prevalence in new proposals of tradeable permits allocated without charge; and the relatively recent increase in attention given to market-based instruments. Finally, the chapter turns to the question of how environmental responsibility is and should be allocated among the various levels of government. We provide a positive review of the responsibilities of Federal, state, and local levels of government in the environmental realm, plus a normative assessment of this allocation of regulatory responsibility. We focus on three arguments that have been made for Federal environmental regulation: competition among political jurisdictions and the race to the bottom; transboundary environmental problems; and public choice and systematic bias.

Antitrust

This is a survey of the economic principles that underlie antitrust law and how those principles relate to competition policy. We address four core subject areas: market power, collusion, mergers between competitors, and monopolization. In each area, we select the most relevant portions of current economic knowledge and use that knowledge to critically assess central features of antitrust policy. Our objective is to foster the improvement of legal regimes and also to identify topics where further analytical and empirical exploration would be useful.