1,279 research outputs found

    A production inventory model with deteriorating items and shortages

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    A continuous production control inventory model for deteriorating items with shortages is developed. A number of structural properties of the inventory system are studied analytically. The formulae for the optimal average system cost, stock level, backlog level and production cycle time are derived when the deterioration rate is very small. Numerical examples are taken to illustrate the procedure of finding the optimal total inventory cost, stock level, backlog level and production cycle time. Sensitivity analysis is carried out to demonstrate the effects of changing parameter values on the optimal solution of the system

    Comparing economic dynamics in the EU and CEE accession countries

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    JEL Classification: E32, E52, F31central and eastern Europe, exchange rate, Kalman filter, optimal currency area, Structural VAR

    An EOQ Model for a Deteriorating Item with Time Dependent Quadratic Demand and Variable Deterioration under Permissible Delay in Payment

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    Abstract In a recent paper, Khanra, Ghosh and Chaudhuri's (2011) presented an EOQ model for a deteriorating item with time dependent quadratic demand under permissible delay in payment. Deterioration considered in most of the EOQ models is constant, while in most of the practical cases the deterioration rate increases with time. This work is motivated by Khanra, Ghosh and Chaudhuri's (2011) paper extending their model to allow for a variable rate of deterioration when delay in payment is permissible. The time varying demand rate is taken to be a quadratic function of time. For settling the account, the model is developed under two circumstances: case-1: The credit period is less than or equal to the cycle time and case-2: the credit period is greater than the cycle time. A numerical example is provided to illustrate the model. Sensitivity analysis has also been conducted to study the effect of the parameters

    Monetary policy report to the Congress, July 16, 2002

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    The pace of economic activity in the United States picked up noticeably in the first half of 2002 as some of the powerful forces that had been restraining spending for the preceding year and a half abated. The economy expanded especially rapidly early in the year. As had been anticipated, much of the first quarter's strength in production resulted from the efforts of firms to limit a further draw down of inventories after the enormous liquidation in the fourth quarter of 2001. Economic activity appears to have moved up further in recent months but at a slower pace than earlier in the year. Notable crosscurrents remain at work in the outlook for economic activity. Although some of the most recent indicators have been encouraging, businesses still appear to be reluctant to add appreciably to workforces or to boost capital spending, presumably until they see clearer signs of improving prospects for sales and profits. These concerns, as well as ongoing disclosures of corporate accounting irregularities and lapses in corporate governance, have pulled down equity prices appreciably on balance this year. The accompanying decline in net worth is likely to continue to restrain household spending in the period ahead, and less favorable financial market conditions could reinforce business caution. Nevertheless, a number of factors are likely to boost activity as the economy moves into the second half of 2002. With the inflation-adjusted federal funds rate barely positive, monetary policy should continue to provide substantial support to the growth of interest-sensitive spending. Low interest rates also have allowed businesses and households to strengthen balance sheets by refinancing debt on more favorable terms. Fiscal policy actions in the form of lower taxes, investment incentives, and higher spending are providing considerable stimulus to aggregate demand this year. Foreign economic growth has strengthened and, together with a decline in the foreign exchange value of the dollar, should bolster U.S. exports. Finally, the exceptional performance of productivity has supported household and business incomes while relieving pressures on price inflation, a combination that augurs well for the future.Monetary policy - United States ; Economic conditions - United States

    Empirical Modelling of the Impact of Financial Innovation on the Demand for Money in Nigeria

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    Financial innovation refers both to technological advances which facilitate access to information, trading and means of payment. The demand for money is very crucial in the conduct and determination of the effectiveness of monetary policy. This study attempts to analyse whether financial innovations that occurred in Nigeria after the Structural Adjustment Programme of 1986 has affected the demand for money in Nigeria using the Engle and Granger Two-Step Cointegration technique. Though the study revealed that demand for money conforms to the theory that income is positively related to the demand for cash balances and interest rate has an inverse relationship with the demand for real cash balances, it was also di scovered that the financial innovations introduced into the financial system have not significantly affected the demand for money in Nigeria. Based on the results obtained, a policy of attracting more patticipants (non-government) and private sector funds to the money market is necessary as this will deepen the market and make the market more dynamic and amenable to monetary policy. Therefore, the study concludes that financial innovation has had no significant impact on the demand for money in Nigeria and the SAP era financial liberalization policies have had no indirect impact on the demand for money as well

    AN ECONOMETRIC MODEL OF EMPLOYMENT IN ZIMBABWE¡¯S MANUFACTURING INDUSTRIES

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    This paper is concerned with the estimation of employment relationship and employment efficiency under production risk using a panel of Zimbabwe¡¯s manufacturing industries. A flexible labour demand function is used consisting of two parts: the traditional labour demand function and labour demand variance function. Labour demand is a function of wages, output, quasi-fixed inputs and time variables. The variance function is a function of the determinants of labour demand and a number of production and policy characteristic variables. Estimation of industry and time-varying employment efficiency is also considered. The empirical results show that the average employment efficiency is 92%.Labour demand, Variance, Efficiency, Manufacturing, Industries, Zimbabwe

    Monetary policy report to the Congress, February 27, 2002

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    Last year was a difficult one for the economy of the United States. The slowdown in the growth of economic activity that had become apparent in late 2000 intensified in the first half of 2001, as businesses slashed investment spending and declines in manufacturing output steepened. Foreign economies also slowed, further reducing the demand for U.S. production. The aggressive actions by the Federal Reserve to ease the stance of monetary policy in the first half of the year provided support to consumer spending and the housing sector. Nevertheless, the weakening in activity became more widespread through the summer, job losses mounted further, and the unemployment rate moved higher. The devastating events of September 11 further set back an already fragile economy. The economic fallout of the events of September 11 led the Federal Open Market Committee (FOMC) to cut the target federal funds rate early the following week and again at each meeting through the end of the year. Firms moved quickly to reduce payrolls and cut production after mid-September; manufacturing and industries related to travel, hospitality, and entertainment bore the brunt of the downturn. Consumer spending, however, remained surprisingly solid over the final three months of the year in the face of enormous economic uncertainty, widespread job losses, and further deterioration of household balance sheets from the sharp drop in equity prices immediately following September 11. With businesses having positioned themselves to absorb a falloff of demand, the surprising strength in household spending late in the year resulted in a dramatic liquidation of inventories. In the end, real GDP posted a much better performance than had been anticipated in the immediate aftermath of the attacks. More recently, there have been encouraging signs that economic activity is beginning to firm. The FOMC left its target for the federal funds rate unchanged in its meeting in January 2002, but reflecting a concern that growth could be weaker than the economy's potential for a time, the Committee retained its assessment that the balance of risks were tilted unacceptably toward economic weakness. The extent and persistence of any recovery in production will, of course, depend critically on the trajectory of final demand in the period ahead, a period in which the economy faces considerable risk of subpar economic performance.Monetary policy - United States ; Economic conditions - United States

    Too Much of a Good Thing? Speculative Effects on Commodity Futures Curves

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