摘要:

We presented two modifications of the traditional model of optimal replacement of capital equipment. Starting from cost-minimization over an infinite horizon, we introduced a variable intensity of utilization in the traditional replacement model to explain functional degradation, i.e., the reduction in utilization intensity as equipment ages. Next, we demonstrated that when technological progress is ongoing, the basic model of optimal replacement can give erroneous results due to neglecting the opportunity cost of foregone technological progress at the time of replacement.

ISSN:0013-791X    

DOI:10.1080/00137919808903191

出版商:Taylor & Francis Group    

年代:1998

数据来源: Taylor

摘要:

We investigated the strategic and economic importance of the cost of quality (COQ) in a firm whose production process is continuous. An empirical model was built to express the COQ as a function of two main components: traditional prevention-appraisal-failure expenses (PAF model) and opportunity losses. Opportunity losses were broken down into three components: underutilization of installed capacity, inadequate material handling, and poor delivery service. We conducted the six-month study in a company along the U.S.-Mexican border. Results show that the COQ expressed as revenue loss is mainly explained by the opportunity component. Also, the COQ expressed as profit not earned is explained by the opportunity variable but in a smaller proportion. Each variable was analyzed and specific recommendations were provided.

ISSN:0013-791X    

DOI:10.1080/00137919808903192

出版商:Taylor & Francis Group    

年代:1998

数据来源: Taylor

摘要:

In this paper, we propose a capital budgeting model under uncertainty in which cash flow information is specified as a special type of fuzzy number—triangular fuzzy numbers. We then estimate the present worth of each fuzzy project cash flow. Using the present worth criterion, we propose a new project dominance method to determine the preference of fuzzy projects. To select fuzzy projects under limited capital budget, a branch and bound procedure is suggested. To illustrate the procedure, we give a numerical example and compare and analyze the results of the capital rationing problem using the proposed dominance method and two other conventional dominance methods.

ISSN:0013-791X    

DOI:10.1080/00137919808903193

出版商:Taylor & Francis Group    

年代:1998

数据来源: Taylor

摘要:

Substantial research on inventory has been done over the years, but with little attention to buyer-seller pricing relationships for deteriorating items. We develop a model with an exponentially decaying inventory to determine optimal joint total relevant annual cost of the buyer and seller. Our analysis extends the research to an all-unit quantity discount inventory policy for deteriorating items with various deterioration rates and negotiation factors. The objective is to determine the optimal replenishment interval and discount price so that the joint total annual cost is minimized. Sensitivity analysis in the numerical example shows that optimal order interval and joint system cost are very sensitive to the deterioration rate. This shows the importance of considering the effect of deterioration.

ISSN:0013-791X    

DOI:10.1080/00137919808903194

出版商:Taylor & Francis Group    

年代:1998

数据来源: Taylor

摘要:

A popular risk analysis technique used for capital investment projects is Monte Carlo simulation of net present value (NPV). Typically, the analyst makes an assumption about probability distributions for parameters in each period over the life of the project and then uses these distributions to generate the probability that NPV is positive. We argued that the conventional approaches to multiperiod uncertainty may be unrealistic for some parameters. Our solution modeled the evolution of a parameter as a Martingale with a shrinking error variance.

ISSN:0013-791X    

DOI:10.1080/00137919808903195

出版商:Taylor & Francis Group    

年代:1998

数据来源: Taylor