Improving global spare parts distribution chain performance through part categorization: A case study

Spare parts inventory management is a complex problem and in most cases part categorization is needed to create a manageable number of control groups to focus management efforts more effectively. Usually multi-dimensional or multi-criteria classifications are used, and there are several examples of classification schemes available in the literature. The complexity increases even more when taking into consideration that a distribution chain consists of many parties. Thus, in addition to internal inventory control factors, external factors such as supplier performance, customer behavior and related demand patterns affect the controllability of the various parts.In the paper we try to expand existing classification schemes that cover only one part of the supply chain into a decision tool covering three sides of the chain: the company's distribution center with its internal processes, supplier with supply processes and customer with demand processes. The complexity that is created by the expanded view is reduced by considering two separate links: demand link and supply link. At first the links are analyzed separately considering the most relevant factors of each one and afterwards they are combined into a categorization matrix to classify the parts.The categorization scheme is tested in a large international company for improving its spare parts distribution chain performance. In the case company's demand link, part value and demand variability were used as the factors to create seven categories. In supply link, three categories are created by using availability risk of the material as the categorizing factor. The spare parts distribution chain performance is analyzed with service performance and stock-out cost key performance indicators before and after improvement actions. Finally, it is discussed how widely the insights from the case experience can be generalized towards developing a generic management tool for such a complex situation.     

Nonparametric Efficiency Analysis under Price Uncertainty: A First-Order Stochastic Dominance Approach

This paper extends the nonparametric approach to efficiency analysis to deal with uncertainty of input-output prices. We generalize the notion of economic efficiency to derive necessary and sufficient first-order stochastic dominance (FSD) efficiency conditions. Interestingly, the FSD conditions include as limiting cases the traditional conditions for economic efficiency and technical efficiency. Furthermore, we propose empirical tests for these FSD conditions, which require minimal assumptions concerning the preferences of the decision-maker and the statistical distribution of the prices. From operational point of view, the FSD conditions can be tested empirically using standard mathematical programming techniques. An empirical application to the Dutch electricity distribution sector illustrates the approach.     

Modelling nonlinearity in U.S. Gross national product 1889–1987

This paper considers modelling the annual logarithmed per capita gross national product of the United States in 1889–1987. Some authors have suggested that the parameters of the process generating the data have changed over time but formal parameter constancy tests do not support this argument. The series turns out to be nonlinear and can be adequately characterized by an exponential smooth transition autoregressive model. For comparison, a detrended series is also considered, found nonlinear and modelled using a logistic smooth transition autoregressive model. The behaviour of the estimated models is discussed, and it is seen that nonlinearity is needed to describe the response of the process to exceptionally large exogenous shocks. The properties of the models are further investigated by forecasting several years ahead, and the forecasts are compared with those from other linear and nonlinear models.     

The "Right to Associate" in Catholic Social Thought

Among the rights of workers articulated in Catholic social thought is the right to associate or the right to form associations of working persons. This right has been discussed in Church documents since the time of the publication of Rerum Novarum in 1891. It is this right that is addressed in this paper.     

Effects of Market Segmentation and Bank Concentration on Mutual Fund Expenses and Returns: Evidence from Finland

A tremendous amount of research examines US mutual funds, but fund markets also thrive in other countries. However, research about these fast growing markets is lacking. This study addresses Finnish funds. Fast growth of the Finnish fund industry, strong bank dominance in the industry and recent EU membership make it an interesting market to examine. The Finnish fund market is also of particular interest since it had the fastest growth among the EU countries during 1996–2000. We find evidence that bank‐managed and older funds charge higher expenses but investors are not compensated for paying higher expenses with higher risk‐adjusted returns, suggesting a potential agency problem. Overall, Finnish fund expenses have decreased over time, consistent with EU membership reducing market segmentation and generating competition.     

Why Do We Need Countercyclical Capital Requirements?

We show that risk-based capital requirements can eliminate the market failure, caused by asymmetric information between entrepreneurs and banks, which distorts the efficient allocation of low-risk and high-risk investment projects among entrepreneurs. If project success probabilities decline in recessions, optimal capital requirements will have to be lower because the size of the market failure changes. This provides a new rationale for keeping risk-based capital requirements higher in good times and lowering them in bad times.     

Labour mobility in the EU: Dynamics,patterns and policies

The continued economic crisis has become a major test for the labour markets of individual member states. Labour mobility within the European Union has the potential to help to reduce labour market pressures and ease economic imbalances. However, a long-term loss of working age population can be detrimental to sending countries. This Forum explores mobility patterns within the European Union and analyses the labour market and welfare effects of labour mobility via case studies of the UK, Poland, Germany and Spain. It also examines a number of its aspects that have important political and institutional relevance for the European Union and its future.