摘要:

The optimal capacity expansion time is an essential problem especially in capital intensive industries, and capacity expansion decisions have a great influence on the firm's operations and profitability. It can be said that the timing question is quite complex, and in practice the experience and intuition of the decision-makers have a central role. We can, however, use theoretical models to explain many essential relations and deepen our understanding of the nature of capacity changes. The actual object of this study is to develop a unit cost minimization model for the timing of capacity expansion. The model is based on the costs and capacities of old and new machines, and the arithmetic growth rate of demand. The analytical solution of the model shows that the relative timing of expansion can be presented with cost advantage and capacity change ratios. It is also shown that the analogical model can be used for capacity replacement and cutting. Finally, the model is extended, and it is shown that such timing can be found which minimizes unit costs and maximizes the profit of the planning period. The original contribution of the study is to suggest an alternative evaluation method for the timing of capacity changes and to present an analytical solution to the formulated problem. The presented model is applied to an illustrative case where capacity addition is planned either through expansion or replacement. The suggestion of the model to the case company is that it is preferable to replace the old machine with a bigger one rather than to acquire a totally new machine.

ISSN:0013-791X    

DOI:10.1080/00137910008967539

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137910008967538

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor

摘要:

This paper applies measures of risk to capacity expansion decisions made under uncertainty. Eight different decision making rules are constructed by varying both the frequency of the forecast updates and the hedge against uncertainty in a rolling horizon heuristic procedure. Using demand, capacity, and cost data from the utility division of a manufacturing company, the risk characteristics of each decision making rule are evaluated by simulation. The results indicate that annual forecast revisions hedged by ninety percent prediction limits are preferred over decision rules with less frequent forecast revisions or fixed-width hedges.

ISSN:0013-791X    

DOI:10.1080/00137910008967540

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor

摘要:

Using a capital budgeting framework, we examine the impact of political risk on the foreign direct investment decision. Political risk may alter operating cash flows via discriminatory regulations as well as the investment via expropriation. We model the impact of political operating costs and expropriation costs on the NPV of a project under the assumption that the parameters that affect the NPV are constant over the life of the project. Next, we provide an illustration for the case in which the relevant parameters are variable over the life of the project. The paper concludes with an example of political risk in the 1990s, the case of Black Sea Energy Ltd.'s investment in Russia.

ISSN:0013-791X    

DOI:10.1080/00137910008967541

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor

摘要:

We explored the market reaction to new IT product announcements by the hard drive manufacturing industry in relation to that industry's evolutionary cycle of innovation. In the short-term, there was no effect. In the long-term however, announcements made during an era of incremental technical change had more favorable reactions than announcements made during an era of fermentEXCEPTwhere those announcements represented an attempt to develop the emerging technology rather than further developing the existing dominant design.

ISSN:0013-791X    

DOI:10.1080/00137910008967542

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor

摘要:

The metric Economic Value Added, or EVA, has recently become quite popular for analyzing company balance sheets, determining executive compensation packages and even project selection. The analysis entails comparing net after-tax operating profit against the allocated cost of capital for a given period. This paper shows, in general, that Market Value Added (MVA), which is the present value of a series of EVA values, is economically equivalent to the traditional NPV measure of worth for evaluating an after-tax cash flow profile of a project if the cost of capital is used for discounting. Additionally, insight is provided into the rationale behind EVA analysis through an interpretation of its capital and income allocation procedure for investment projects.

ISSN:0013-791X    

DOI:10.1080/00137910008967543

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor

摘要:

This paper discusses a measure for estimating the wealth creation potential of capital investments in manufacturing. The measure, called “Economic Value Added,” has recently become popular in the United States and can be derived from an after-tax analysis of cash flows generated by a capital investment. A proposed investment in manufacturing capacity is analyzed to illustrate the after-tax cash flow calculations required to determine its EVA potential.

ISSN:0013-791X    

DOI:10.1080/00137910008967544

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137910008967545

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137910008967546

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137910008967547

出版商:Taylor & Francis Group    

年代:2000

数据来源: Taylor