A NOTE ON THE OPTIMAL CYCLE LENGTH WITH A RANDOM PLANNING HORIZON

In 1993, Moon and Yun studied the economic order quantity model with a random planning horizon. They adopted the discounted cash flow to fully recognize the time value of money in determining the optimal cycle length. In this paper, we first derive bounds for the optimal cycle length. With those bounds, the algorithm of Moon and Yun can be simplified.     

ASEE-EED Revised Bylaws

Moon and Yun justified the optimality of solutions derived from the first order conditions in Kim, Philippatos and Chung. With that optimality of solutions, bounds for the optimal cycle time are derived. Then, using those bounds, a simple algorithm to compute the optimal cycle time is developed.     

An np control chart for monitoring the mean of a variable based on an attribute inspection

This article proposes a new np control chart, called the np_x chart, that employs an attribute inspection (inspecting whether a unit is conforming or nonconforming) to monitor the mean value of a variable x. The distinctive feature of the np_x chart is using the statistical warning limits to replace the specification limits for the classification of conforming or nonconforming units. By optimizing the warning limits, the np_x chart usually outperforms the X¯ chart on the basis of same inspection cost. In addition, the np_x chart often works as a leading indicator of trouble and allows operators to take corrective action before any defective is actually produced.     

A Further Note on Endogenous Spillovers in a Non-tournament R&;D Duopoly

This note considers the paper of Poyago-Theotoky (1999) on strategic R&D with endogenous spillovers. It proves through an example that, under R&D collusion, optimality sometimes requires either minimal or asymmetric spillovers. It also provides a simple sufficient condition for optimal spillovers between colluding firms to involve maximal spillovers (i.e., complete sharing of information).      

Assessment is for learning: supporting feedback

This paper describes an action research, school situated project conducted with partnership funding from Learning and Teaching Scotland, Scottish Qualifications Authority and Becta, the UK government’s agency for communications technology in education. Based on e-scape (e-solutions for creative assessment in portfolio environments), developed by Goldsmiths, University of London, the Scottish project focussed on integrating innovative methods of capturing evidence of creative performance with providing formative feedback to learners. Classroom trials were conducted with Primary 7 through to Secondary 3 learners (10–15 year olds) in 2 different local education authorities. Learner and teacher thoughts were recorded through blogs, e-forums and interviews; the authored design challenges were shared through the web-based e-scape authoring system and e-folios reviewed by participant teachers and researchers. This paper provides a summary of the reactions and responses from teacher practitioner, learner and researcher perspectives based on their experiences and the results of the classroom trials. It discusses the potential contribution in terms of supporting learning, teaching and assessment within the framework of Scotland’s Curriculum for Excellence (2004) Technologies (2009) learning area. It is hoped that e-scape scotland supports pedagogies which enable the capture of creative thinking in real time for authentic and formative assessment and addresses some of the issues for classroom practice and practitioners.     

Controlling Sellers Who Provide Advice: Regulation and Competition*

A monopoly seller advising buyers about which of two goods fits their needs may be tempted to recommend the higher margin good. For the seller to collect information about a buyer’s needs and provide truthful advice, the profits from selling both goods must be similar enough, i.e., within an implementability cone. The optimal regulation controls pricing distortions and information-collection incentives separately via price regulation and fixed rewards respectively. This no longer holds when the seller has private information about costs as both problems interact. We study whether competition and the threat by buyers to switch sellers can substitute for regulation.     

DESIGNING A MARKET STRUCTURE WHEN FIRMS COMPETE FOR THE RIGHT TO SERVE THE MARKET*

In many industries, a regulator designs an auction to select ex‐ante the firms that compete ex‐post on the product market. This paper considers the optimal market structure when firms incur sunk costs before entering the market and when the government is not able to regulate firms in the market. We prove that a free entry equilibrium results in an excessive entry when the entry costs are private information. Then, we consider an auction mechanism selecting the firms allowed to serve the market and show that the optimal number of licences results in the socially optimal market structure. When all the potential candidates are actual bidders, the optimal number of firms in the market increases with the number of candidates and decreases with the social cost of public funds. When the market size is small, as the net profit in the market decreases with the number of selected firms, entry is endogenous. As increasing competition in the market reduces competition for the market, the optimal structure is more concentrated than in the previous case.     

Perfect timing? Dominant category,dominant design,and the window of opportunity for firm entry

The optimal time to enter emerging industries is a key concern in strategy, yet scholars struggle to create a theoretical foundation that can integrate conflicting empirical findings. We incorporate categorical dynamics to industry life cycle theory to enhance existing entry timing theories. We introduce the concept of a dominant category—the conceptual schema that most stakeholders adhere to when referring to products that address similar needs and compete for the same market space—linking it to the dominant technological design and entry‐timing advantages. In particular, we propose the existence of a window of opportunity for firm entry that starts with the emergence of the dominant category and ends with the emergence of the dominant design. © 2013 The Authors. Strategic Management Journal published by John Wiley & Sons Ltd.     

Riskiness of Real Estate Development: A Perspective from Urban Economics and Option Value Theory

In this article, we define a new construct for urban economic and investment analysis, which revisits the conventional wisdom that investment in real estate development is riskier than investment in stabilized property assets. This new construct, referred as a “development asset value index” (DAVI), is a value index for newly developed properties (only) in a given geographical property market. It tracks longitudinal changes in the highest and best use (HBU) value of locations, and it reveals developer and landowner behavior taking advantage of the optionality inherent in land ownership. In particular, the DAVI reflects developers' use of flexibility in the exercise of the call option to (re)develop the property to any legal use and density. We empirically estimate a DAVI for commercial property (i.e., central locations) and compare it with a corresponding traditional transaction‐price‐based property asset price index (PAPI) corrected for depreciation. We believe that the difference primarily reflects the realized value of flexibility in land development. We find that the DAVIs display greater value growth and are smoother over time and less cyclical than their corresponding PAPIs for the same locations. This suggests that developers successfully use flexibility, and that development may be riskier than stabilized property investment due primarily only to leverage effects (construction costs). Practical implications are also discussed.     

基于双尺度低NO_x燃烧技术的电站锅炉改造

近年来环境污染问题日益严重,其中电力企业在NOx排放方面对环境的污染尤为突出。为减少环境污染,针对某电厂原有锅炉进行燃烧器的改造,以降低电厂NOx的排放。依据设计方案,以基于炉膛空间尺度和煤粉燃烧过程尺度的双尺度低NOx燃烧技术,对电厂燃烧器进行改造。改造结果表明:基于双尺度低NOx燃烧技术改造后的电站锅炉,其NOx的排放显著降低。     

The effects of a free-repair warranty on the discrete-time periodic replacement policy

This paper presents the effects of a free-repair warranty on a periodic replacement policy with a discrete time process. Considering a repairable product that should be operational at the time over an indefinitely long operation cycle n (n=1, 2, …), under the discrete-time periodic replacement policy, a product is preventively replaced at pre-specified operation cycles N, 2N, 3N, … (N=1, 2, …). When the product fails, a minimal repair is performed at the time of failure, and the failure rate is not disturbed by each repair. The cost models from the customers' perspectives are developed for both warranted and non-warranted products. The corresponding optimal replacement period N? is derived such that the long-run expected cost rate is minimized. Under the assumption of the discrete time increasing failure rate, the existence and uniqueness of the optimal replacement period are shown, and the impact of a free-repair warranty on the optimal periodic replacement policies is investigated analytically. The optimal N* for a warranted product should be adjusted toward the end of the warranty period. Finally, numerical examples are demonstrated for the optimal policy illustration and verification. The observations from the numerical results provide valuable information for a buyer (user) to adjust the optimal periodic replacement policy if a product is operating in discrete time under a free-repair warranty.     

The Innovation Manual: Integrated Strategies and Practical Tools for Bringing Value Innovation to the Market by David Midgley

Books reviewed in this issue:

• ? The Innovation Manual: Integrated Strategies and Practical Tools for Bringing Value Innovation to the Market
• ? Sensory Marketing
• ? Agile Product Management with Scrum: Creating Products that Customers Love

     

The Product Manager's Desk Reference by Steven Haines

Books reviewed in this issue:

• ? The Product Manager's Desk Reference
• ? How We Decide
• ? Nudge: Improving Decisions about Health, Wealth, and Happiness
• ? The Handbook of High‐Performance Virtual Teams: A Toolkit for Collaborating across Boundaries

     

Partitioning transaction vectors into pure investments

A pure investment is defined here as any transaction where the invested capital is nonnegative at all times during the life of the transaction. This article proves that any transaction whose first non-zero term is negative can be uniquely partitioned into pure investments with strictly decreasing internal rates of return (IRRs). The IRRs of the partitioning transactions put bounds on the IRRs of the original transaction. The partitioning theorem gives a simple characterisation of Arrow/Levhari's results on the optimal truncation of a transaction. The partitioning theorem also has applications to the problem of the optimal time for an investor to sell the remaining terms in a transaction.     

Scheduling multiple robots in a no-wait re-entrant robotic flowshop

No-wait re-entrant robotic flowshops are widely used in the electronic industry, such as PCB and semiconductor manufacturing. In such an industry, cyclic production policy is often used due to large lot size and simplicity of implementation. This paper addresses cyclic scheduling of a no-wait re-entrant robotic flowshop with multiple robots for material handling. We formulate the problem and propose a polynomial algorithm to find the minimum number of robots for all feasible cycle times. Consequently, the minimum cycle time for any given number of robots can be obtained with the proposed algorithm. The algorithm runs in O(N⁵) time in the worst case, where N is the number of machines in the robotic flowshop.     

The Global Brain by Satish Nambisan and Mohanbir Sawney

Books reviewed in this issue:

• ? The Global Brain
• ? Do It Wrong Quickly: How the Web Changes the Old Marketing Rules
• ? Reinventing Project Management: The Diamond Approach to Successful Growth and Innovation
• ? Selling Blue Elephants: How to Make Great Products that People Want before They Even Know They Want Them

     

Applying Target Costing in the Development of Marketable and Environmentally Friendly Products from Swine Waste

Management of swine waste generated in the United States is a challenging problem facing engineers, farmers, scientists, regulators, and policy-makers. Technologies for processing and storing swine waste have not been fully developed and refined in a manner acceptable to the public and environmental regulators. The primary concerns with improperly disposed swine waste are the effects on human and livestock health, surface and groundwater quality, air quality, and conservation of nitrogen fertilizers (Hagenstein 2003 Hagenstein, P. R. 2003. Air Emissions from Animal Feeding Operations: Current Knowledge, Future Needs, Washington, D. C.: National Research Council, National Academy Press.  [Google Scholar]).

The purpose of this study is to demonstrate the concept of target costing by applying it to a very specific example: the production of biomethanol from swine manure. This study summarizes the analyses that outline a design and calculate a preliminary cost estimate for a proposed system for producing biomethanol from swine manure (initial process). In this study the target costing process is demonstrated with calculation of a target cost. This article also demonstrates an application of value engineering as a systematic, interdisciplinary examination of factors affecting the cost of a product so as to find means to fulfill the product's specified purpose at the required standards of quality and reliability and at an acceptable cost.

The article is organized as follows. First, the purpose of applying target costing methodology to the development of marketable by-products from swine manure is outlined. Next, target cost is calculated for biomethanol made from swine manure based on current methanol prices and currently available subsidies for biomethanol made from swine manure. A system for producing biomethanol from swine manure is described. The current cost is calculated for producing biomethanol. Concepts of value engineering are employed to reduce a significant cost component of the initial process resulting in Process II. Finally, value engineering is employed the second time to further reduce the cost of Process II yielding Process III.     

Build an Industry Hot Rod: The Nuts and Bolts of Leaving Competitors in the Dust by Marvin L. Patterson

Books reviewed in this issue:

• ? Build an Industry Hot Rod: The Nuts and Bolts of Leaving Competitors in the Dust
• ? Innovating at the Top: How Global CEOs Drive Innovation for Growth and Profit
• ? Determinants of Innovative Behaviour: A Firm's Internal Practices and Its External Environment

     

On optimal scarcity prices

This article contributes to the debate of missing money (compare Joskow(2007a)). This debate has seriously questioned the desirability of limiting scarcity prices in markets with fluctuating demand by emphasizing their potentially negative impact on firms' investment decisions in the long run. A prominent example are recently liberalized electricity markets, where competition authorities have imposed price caps³ or adopted other measures to mitigate high scarcity prices.The impact of reduced scarcity prices in the long run still is only incompletely explored. We thus analyze investment of firms in base load and peak load technologies in a market with fluctuating demand under imperfect competition. We show that an appropriately chosen limitation of scarcity prices is not only beneficial in the short run but also in the long run. It leads to a strict increase of investment in peak load technologies, leaving investment in base load technologies unchanged. Furthermore, we characterize the optimal limit on scarcity prices.     

Johnson's algorithm: A key to solve optimally or approximately flow shop scheduling problems with unavailability periods

Johnson's algorithm (JA) is perhaps the most classical algorithm in the scheduling area. JA gives the optimal solution to the two machine flow shop to minimize the makespan in polynomial time. Researchers have tried to extend this notorious result to obtain polynomial time algorithms for more general cases. Such importance motivated us to devote this paper to JA applied to three flow shop problems with unavailability periods to minimize the makespan. First we focus on the optimality condition of JA. Then we propose a modification of JA. After we calculate new performances of JA as a heuristic. Last we deal with an extension of JA.