Implementation of the Newsvendor Model with Clearance Pricing: How to (and How Not to) Estimate a Salvage Value

The newsvendor model is designed to decide how much of a product to order when the product is to be sold over a short selling season with stochastic demand and there are no additional opportunities to replenish inventory. There are many practical situations that reasonably conform to those assumptions, but the traditional newsvendor model also assumes a fixed salvage value: all inventory left over at the end of the season is sold off at a fixed per-unit price. The fixed salvage value assumption is questionable when a clearance price is rationally chosen in response to the events observed during the selling season: a deep discount should be taken if there is plenty of inventory remaining at the end of the season, whereas a shallow discount is appropriate for a product with higher than expected demand. This paper solves for the optimal order quantity in the newsvendor model, assuming rational clearance pricing. We then study the performance of the traditional newsvendor model. The key to effective implementation of the traditional newsvendor model is choosing an appropriate fixed salvage value. (We show that an optimal order quantity cannot be generally achieved by merely enhancing the traditional newsvendor model to include a nonlinear salvage value function.) We demonstrate that several intuitive methods for estimating the salvage value can lead to an excessively large order quantity and a substantial profit loss. Even though the traditional model can result in poor performance, the model seems as if it is working correctly: the order quantity chosen is optimal given the salvage value inputted to the model, and the observed salvage value given the chosen order quantity equals the inputted one. We discuss how to estimate a salvage value that leads the traditional newsvendor model to the optimal or near-optimal order quantity. Our results highlight the importance of understanding how a model can interact with its own inputs: when inputs to a model are influenced by the decisions of the model, care is needed to appreciate how that interaction influences the decisions recommended by the model and how the model’s inputs should be estimated

The Effects of Thermal Procedure on Transformation Temperature, Crystal Structure and Microstructure of Cu-Al-Co Shape Memory Alloy

The purpose of this study is to investigate the effects of different thermal procedures of the Cu-Al-Co shape memory alloy on its crystal structure, transformation temperature and microstructure. The alloys were subjected to a heat treatment and then cooling was applied at four different conditions. After the thermal process, XRD, DSC, optical microscopy and micro-hardness measurements were carried out. The experimental studies showed that crystal structure, microstructure and transformation temperature of Cu-Al-Co alloy were changed from the cooling conditions

Optimal and competitive assortments with endogenous pricing under hierarchical consumer choice models’,

T his paper studies assortment planning and pricing for a product category with heterogeneous product types from two brands. We model consumer choice using the nested multinomial logit framework with two different hierarchical structures: a brand-primary model in which consumers choose a brand first, then a product type in the chosen brand, and a type-primary model in which consumers choose a product type first, then a brand within that product type. We consider a centralized regime that finds the optimal solution for the whole category and a decentralized regime that finds a competitive equilibrium between two brands. We find that optimal and competitive assortments and prices have quite distinctive properties across different models. Specifically, with the brand-primary model, both the optimal and the competitive assortments for each brand consist of the most popular product types from the brand. With the type-primary choice model, the optimal and the competitive assortments for each brand may not always consist of the most popular product types of the brand. Instead, the overall assortment in the category consists of a set of most popular product types. The price of a product under the centralized regime can be characterized by a sum of a markup that is constant across all products and brands, its procurement cost, and its marginal operational cost, implying a lower price for more popular products. The markup may be different for each brand and product type under the decentralized regime, implying a higher price for brands with a larger market share. These properties of the assortments and prices can be used as effective guidelines for managers to identify and price the best assortments and to rule out nonoptimal assortments. Our results suggest that to offer the right set of products and prices, category and/or brand managers should create an assortment planning process that is aligned with the hierarchical choice process consumers commonly follow to make purchasing decisions

Co-firing of biomass with coals Part 1. Thermogravimetric kinetic analysis of combustion of fir (abies bornmulleriana) wood

The chemical composition and reactivity of fir (Abies bornmulleriana) wood under non-isothermal thermogravimetric (TG) conditions were studied. Oxidation of the wood sample at temperatures near 600 A degrees C caused the loss of aliphatics from the structure of the wood and created a char heavily containing C-O functionalities and of highly aromatic character. On-line FTIR recordings of the combustion of wood indicated the oxidation of carbonaceous and hydrogen content of the wood and release of some hydrocarbons due to pyrolysis reactions that occurred during combustion of the wood. TG analysis was used to study combustion of fir wood. Non-isothermal TG data were used to evaluate the kinetics of the combustion of this carbonaceous material. The article reports application of Ozawa-Flynn-Wall model to deal with non-isothermal TG data for the evaluation of the activation energy corresponding to the combustion of the fir wood. The average activation energy related to fir wood combustion was 128.9 kJ/mol, and the average reaction order for the combustion of wood was calculated as 0.30

The Top-Dog Index: A New Measurement for the Demand Consistency of the Size Distribution in Pre-Pack Orders for a Fashion Discounter with Many Small Branches

We propose the new Top-Dog-Index, a measure for the branch-dependent historic deviation of the supply data of apparel sizes from the sales data of a fashion discounter. A common approach is to estimate demand for sizes directly from the sales data. This approach may yield information for the demand for sizes if aggregated over all branches and products. However, as we will show in a real-world business case, this direct approach is in general not capable to provide information about each branch's individual demand for sizes: the supply per branch is so small that either the number of sales is statistically too small for a good estimate (early measurement) or there will be too much unsatisfied demand neglected in the sales data (late measurement). Moreover, in our real-world data we could not verify any of the demand distribution assumptions suggested in the literature. Our approach cannot estimate the demand for sizes directly. It can, however, individually measure for each branch the scarcest and the amplest sizes, aggregated over all products. This measurement can iteratively be used to adapt the size distributions in the pre-pack orders for the future. A real-world blind study shows the potential of this distribution free heuristic optimization approach: The gross yield measured in percent of gross value was almost one percentage point higher in the test-group branches than in the control-group branches.Comment: 22 pages, 15 figure

Utilization of galactomannan from Gleditsia triacanthos in polysaccharide-based films : effects of interactions between film constituents on film properties

The objective of this work was to evaluate the effect of the concentrations of Gleditsia triacanthos galactomannan and glycerol and the presence of corn oil in the physical properties of edible films. The influence of interactions between those constituents on films' permeability to gases (water vapour, CO2 and O2), solubility in water, mechanical properties and colour was evaluated. The effects of those variables were analysed according to a 23 factorial design; regression coefficients were used to understand the influence of each variable (factor) on the studied properties, and a multifactor model was developed. Results show that galactomannan concentration is the most significant factor affecting the studied properties; moreover, the increase of plasticizer concentration and the presence of oil showed to be the most influent in the particular cases of solubility and transport properties (water vapour permeability and O2 permeability), respectively. These results show that galactomannan films' properties can be tailored to allow their use as alternative to non-biodegradable, non-edible packaging materials.The author M. A. Cerqueira is recipient of a fellowship from Fundacao para a Ciencia e Tecnologia (FCT, SFRH/BPD/72753/2010) and B. W. S. Souza is a recipient of a fellowship from the Coordenacao de Aperfeicoamento de Pessoal de Nivel Superior, Brazil (Capes, Brazil)

Solution conformation and flexibility of capsular polysaccharides from Neisseria meningitidis and glycoconjugates with the tetanus toxoid protein

The structural integrity of meningococcal native, micro-fluidized and activated capsular polysaccharides and their glycoconjugates – in the form most relevant to their potential use as vaccines (dilute solution) - have been investigated with respect to their homogeneity, conformation and flexibility. Sedimentation velocity analysis showed that the polysaccharide size distributions were generally bimodal with some evidence for higher molar mass forms at higher concentration. Weight average molar masses Mw where lower for activated polysaccharides. Conjugation with tetanus toxoid protein however greatly increased the molar mass and polydispersity of the final conjugates. Glycoconjugates had an approximately unimodal log-normal but broad and large molar mass profiles, confirmed by sedimentation equilibrium “SEDFIT MSTAR” analysis. Conformation analysis using HYDFIT (which globally combines sedimentation and viscosity data), “Conformation Zoning” and Wales-van Holde approaches showed a high degree of flexibility – at least as great as the unconjugated polysaccharides, and very different from the tetanus toxoid (TT) protein used for the conjugation. As with the recently published finding for Hib-TT complexes, it is the carbohydrate component that dictates the solution behaviour of these glycoconjugates, although the lower intrinsic viscosities suggest some degree of compaction of the carbohydrate chains around the protein

RIDE Good Practice Directory

The Good Practice Directory is the second element of the comprehensive RIDE Toolbox. It was conceived as a collection of fifteen case studies that will evoke examples of good practices in youth work, with an emphasis on principles of inclusion, diversity and equality (IDE). In the previous Toolbox element “Principles and approaches report”, it was concluded that IDE principles have different meanings in different countries, that organisations implement them in their own, unique way and that individuals have their own understanding of these concepts. So, the idea behind a good practice directory was to show how IDE principles live in practice, how are they understood and how are they implemented in five different countries (United Kingdom, Turkey, Slovakia, Croatia and Italy). You will probably notice a lot of diversity in this directory and we can tell you right away - it was done on purpose. We wanted to explore both an organisation’s work and work on particular programs or projects. Likewise, we decided to write about examples that are seeking to develop approaches for inclusion of all young people in the organisation’s work and examples that are seeking to work with specific identified issues. And last, but not least, we wanted to keep our own style of writing in order to celebrate our individual approach to ‘’storytelling’’ and the process of exploration. However, our case studies have one thing in common – the focus on the practical application. Through them, we wanted to give you insight into the life of organisations and projects (from the beginning to the present day; from starting point till realization). We talked with youth workers, organisation leaders and young people who shared their personal stories, learning journeys and activities; who gave a lot of useful advice for people who are directly involved in youth work. Also, we talked about different groups of young people with fewer opportunities in order to make them more visible as a population with specific needs and hopefully inspire other organisations to include them in their everyday work. We are most grateful for the availability, responsiveness and shared passion of all these people