Supply Chain Planning with Incremental Development, Modular Design, and Evolutionary Updates

Proceedings Paper (for Acquisition Research Program)The policy specified by DoDI 5000.02 (DoD, 2008, December 8) prescribes an evolutionary acquisition strategy. Products with long lifecycles such as torpedoes, evolutionary updates via incremental development, modular design updates, technology refreshes, technology insertions, and Advanced Processor Builds are all in play at the same time. Various functional elements of the weapon system are often redesigned during the lifecycle to meet evolving requirements. Component obsolescence and failures must also be anticipated and addressed in upgrade planning. Within each weapon system''s evolutionary acquisition, cycle-changing requirements may expose weaknesses that have to be rectified across the inventory. New acquisition paradigms such as modular design have to be introduced into the supply chain while maintaining inventory levels of previously designed weapons at a high level of readiness. Thus, a diverse set of requirements must be satisfied with a finite set of resources. The acquisition policy does not provide guidance on how to address cross-coordination and optimization of project resources. This paper explores decision models for balancing conflicting demands and discusses the application of how these models address cross-coordination and optimization of project resources in the torpedo acquisition process while keeping the weapon''s efficiency and inventory effectiveness at or above minimum specified levels.Naval Postgraduate School Acquisition Research ProgramApproved for public release; distribution is unlimited

A management model for closed-loop supply chains of reusable articles: defining the issues

In this paper a conceptual model for the management of closed-loop supply chains of reusable articles is put forward. This framework condenses the more relevant managerial issues arising when reuse is carried out in industrial practice. The model intends to be a guideline for practitioners dealing with this type of challenges and constitutes a first step towards the mitigation of the problematic issues involved in reuse. In further developments of this research, we propose solutions to some of the issues identified here

Innovations in rural and agriculture finance

Most rural households lack access to reliable and affordable finance for agriculture and other livelihood activities. Many small farmers live in remote areas where retail banking is limited and production risks are high. The recent financial crisis has made the provision of credit even tighter and the need to explore innovative approaches to rural and agricultural finance even more urgent. This set of 14 briefs clearly points out the importance of business realities faced by small farmers, including low education levels, the dominance of subsistence farming, and the lack of access to modern financial instruments. These conditions mean that new and innovative institutions are required to reach small farmers. Emerging communication technologies provide new opportunities for rural banking by reducing business costs and alleviating information asymmetries. New financing instruments, such as weather index-based insurance and microinsurance, also have great potential for managing the risks faced by small farmers. In addition, bundling financial services with nonfinancial services like marketing and extension services offers new opportunities for small farmers to increase their productivity and incomes. Finally, an enabling policy environment and legal framework, enforcement of rules and regulations, and a supportive rural infrastructure all contribute immensely to making sustainable access to finance a reality. Table of Contents: •Innovations in rural and agriculture finance: Overview by Renate Kloeppinger-Todd and Manohar Sharma •Financial literacy by Monique Cohen •Community-based financial organizations: Access to Finance for the Poorest by Anne Ritchie •Rural banking in Africa: The Rabobank approach by Gerard van Empel •Rural banking: The case of rural and community banks in Ghana by Ajai Nair and Azeb Fissha •Rural leasing: An alternative to loans in financing income-producing assets by Ajai Nair •Determinants of microcredit repayment in federations of Indian self-help groups by Yanyan Liu and Klaus Deininger •M-PESA: Finding new ways to serve the unbanked in Kenya by Susie Lonie •Biometric technology in rural credit markets: The case of Malawi by Xavier Giné •Credit risk management in financing agriculture by Mark D. Wenner •New approaches for index insurance: ENSO insurance in Peru by Jerry R. Skees and Benjamin Collier •Microinsurance innovations in rural finance by Martina Wiedmaier-Pfister and Brigitte Klein •Combining extension services with agricultural credit: The experience of BASIX India by Vijay Mahajan and K. Vasumathi •Bundling development services with agricultural finance: The experience of DrumNet by Jonathan Campaigne and Tom RauschAgricultural innovations -- Developing countries, agriculture finance, Financial crisis, microinsurance, Poverty reduction, rural banking, Rural finance, Rural households, Small farmers,

Exploring the Dynamics and Modeling National Budget as a Supply Chain System: A Proposal for Reengineering the Budgeting Process and for Developing a Management Flight Simulator

In the Science of Economics, there has been a debate about the optimal fiscal and budgetary policy that should be implemented by governments. On the one side, the advocates of the Keynesian Theory assert that in recession times governments should run budgets with deficits, in order to stimulate the economy, while the supporters of the Balanced Budget Theory, on the contrary, underscores the need to reduce and even eliminate the budget deficits. However, previous experience shows that both theories often failed to accomplish their goals, because they underestimated a very sensitive parameter: national budgets are not just an estimate of revenues and receipts or a simple statement. Rather, they are systems, the entities of which interact with each other and respond to any event affecting their state. Even further, a national budget can be considered as a special case of a supply chain system. Within this framework, the present thesis seeks to introduce a new aspect in budgeting. Specifically, the national budget is mapped as a supply chain and modeled as a system. Thereafter, the research focuses on and explores the budget \u27s dynamics, which are responsible for the failures experienced in the fiscal and budgetary policy and concludes with a proposal for reengineering the budgeting process, according to the postulates of the demand management process in a supply chain. Lastly, it underscores the need to develop a Management Flight Simulator, which will reveal the dynamics of national budgets, as the Beer Game does in the case of the supply chains, and that will act as a learning tool for anyone interested in budgeting, supply chains or/ and public economics

The efficiency of budgeting for procurement of movable non-current assets in the absence of sound asset management

Movable non-current assets are physical and mobile assets that a municipality uses to provide services to the community directly or indirectly. Therefore, effective movable non-current asset management is necessary to ensure that these assets provide value to both the municipality and the community. This study seeks to determine whether poor asset management negatively affects capital budgeting for procurement of movable non-current assets. Mbhashe Local Municipality, a Category B municipality in the Eastern Cape Province was selected for the study. A desktop research method was utilised for this study. The analysis of secondary data includes policy documents (such as National Treasury asset management guidelines and Mbhashe budgeting policy), books, journals, internet data, newspapers and research documents in order to determine asset management guidelines and budgeting theories by noteworthy scholars. Auditor General South Africa (AGSA) and State of Local Government Finance reports were also analysed to establish the current practice and impact of the role of the municipal management in its finances as well as budget spending patterns at Mbhashe Local Municipality. The results of the study revealed that Mbhashe Local Municipality’s non-compliance with asset management and budgeting policies and procedures throughout the period of the study negatively affected their capital budgeting decisions. The consequences of instability in leadership and lack of approved movable non-current asset management policy resulted in partial asset information, incorrect recording and accounting systems for assets and unauthorised disposal of strategic movable non-current assets. Although, an approved budget policy existed at Mbhashe Local Municipality, the budgetary information was unrealistic because of negligence such as: lack of public participation, consultation and alignment of the Integrated Development Plan (IDP) with the municipality’s objectives. This resulted in habitual under-spending of capital assets compared to the capital budget throughout the period of the study