A Review of: “MODELING THE SUPPLY CHAIN” BY JEREMY R SHAPIRO Duxbury Press,Pacific Grove,California, 2001, xv + 586 pp. ISBN 0-534-37363-1. List: $71.95.

In this paper, we measure economic profit in an inflationary environment. Inflation adjusted economic profit requires two principal alterations to Economic Value Added (EVA[rgrave]). First, because inflation increases the replacement cost of non-current assets above book value, one must make a downward adjustment to EVA[rgrave] to correctly measure economic profit. Second, we add a term to EVA[rgrave] to represent a manager's ability to increase product price as costs increase. This adjustment is positive because this ability adds value to a firm. When a firm's assets are largely current, the first adjustment is not necessary, and therefore, the second dominates. In this case, EVA[rgrave] underestimates economic profit. Economic profit remains positive when a firm's rate of return on invested capital, after tax and after depreciation, is less than the weighted average cost of capital by as much as the rate of inflation. Even when inflation is modest, unadjusted EVA[rgrave] has the potential to seriously misrepresent the operating performance of a firm.     

A review of: “ENGINEERING RELIABILITY: FUNDAMENTALS AND APPLICATIONS”by R. RAMKUMAR Prentice Hall,Englewood Cliffs,New Jersey 1993, xiii + 482 pp. ISBN: 0-13-1767597. List: $70.00.

This paper presents a Real Tune Computer Aided Process Planning (RTCAPP) system which can serve as a support tool for economic decision making during design activities. The system is capable of providing the information about manufacturing implication of each added design feature to the designer during the design process of prismatic parts. A knowledge-based system using a bierarchical planning scheme and a multi-bank rule base is developed to generate near-optimal process plans in real time. The planning process is supported by an optimization module which uses dynamic programming to minimize manufacturing costs. The incremental planning mechanism utilizes as much of the existing plan information as is necessary to generate a new process plan, whenever the design is updated. The system serves as an effective concurrent engineering tool that can be used to provide real time feedback on the manufacturing cost consequences to the designer     

新型地下管线探测仪C.A.T.

<正>新型地下管线探测仪C.A.T接收机可以探测到地下管线自然发射出的信号,或使用Genny发射机给管线施加一个可以用C.A.T探测的特殊信号。避免了无计划开挖可能对电缆或者管道造成破坏,导致昂贵的维修费用、工程的延误甚至人员的伤亡。新型地下管线探测仪具有四种工作模式,①P模式:C.A.T接收机探测带电的电力电缆发射的"电力"信号。②R模式:C.A.T接     

A Review of: “ECONOMIC ANALYSIS AND INVESTMENT DECISIONS” by Chi U. Ikoku,John Wiley and Sons,New York, 1985, xx + 277 pp., ISBN 0471-81455-5, List $34.95.

(Payback Plus 2.0 is an updated version of PAYBACK which had earlier been released by the Society of Manufacturing Engineers (SME). This new software package is published and distributed by MiCAPP Inc., 16956 230th Avenue, Big Rapids, Michigan 49307. It is available for the IBM-PC or compatible equipment; the advertised list price is £99 + £4 shipping and handling.)     

A review of: “ENGINEERING ECONOMY WITH COMPUTER APPLICATIONS”, by Dr. Arup K. Mnllik,Engineering Technology,Inc., Mahomet,Illinois, 1979, 289 pages,list 517.95.

This paper applies option pricing analysis to the problem of valuing the abandonment option of an investment proposal. The assumption is made that the abandonment option is exercisable at only one point in time in the future and that the project's vatue-in-use and its abandonment value are lognormally distributed. The model is employed to measure how the uniqueness of the project asset, as measured by the correlation between these two lognormal random variables, affects the value of the abandonment option. It is shown that the more unique the asset, or the higher the correlation, the lower is the value of the abandonment option. The model is also employed to examine the impact of increased uncertainty in these two random variables on the value of the abandonment option. The relationships are shown to be nonmonotonic. However, beyond critical thresholds, increased uncertainty in either one of the two variables enhances the value of the abandonment option.     

改进F.A.T.真空发生器控制方式

汽车制造企业车身焊接车间的F.A.T.真空发生器,因设备老化等原因,操作盒的开关按钮开始失灵。将真空发生器上的气动换向阀改为电磁换向阀,在PLC中修改SWAC面板的程序,实现SWAC面板对真空发生器的控制。     

A Review of: “OPTIMIZATION TECHNIQUES IN QUANTITATIVE ECONOMIC MODELS” By J. K. Sengupta and K. A. Fox American Elsevier Publishing Company,Inc. 1970 478 pp. $22.50

A survey of firms in the chemical, computer, and pharmaceutical Industries provides insight into Investment decision making practices under environmental/ social uncertainty. The practices are fairly simple, appropriate only when a new product is very similar to existing products. The practices ' perceived advantages and disadvantages establish a general blueprint for the development of new decision making techniques. The new techniques need to improve accuracy as much as possible without losing simplicity, and need to be generally acceptable to all the firms in the industry     

A review of: “APPLIED ECONOMIC ANALYSIS FOR TECHNOLOGISTS,ENGINEERS, AND MANAGERS ” BY MICHAEL S. BOWMAN Prentice-Hall,Inc., Upper Saddle River,New Jersey, 1999, xii + 561 pp., ISBN: 0-13-375932-6, List: $76.75.

In their recent paper Tang and Tang (2003 Tang, S. L. and Tang, H. J. 2003. The variable financial indicator IRR and the constant economic indicator NPV.. The Engineering Economist, Vol. 48(No. 1): pp. 69–78. [Taylor &; Francis Online] , [Google Scholar], pp. 69–78) revive a longstanding controversy—net present value (NPV) versus internal rate of return (IRR)—by characterizing the NPV as an economic indicator and the IRR as a financial one. The paper implies that this distinction justifies ranking financial alternatives by ranking their IRRs. In the current article, it is argued that the direct IRR ranking does not necessarily provide the same evaluation environment—and therefore a fair comparison—for each alternative involved, and that the incremental ranking approach is needed to remedy this shortcoming. The article also points out that Tang and Tang's numerical examples of simple projects with one sign change in their cash flow patterns do not address the problem of multiple IRRs, which consequently renders Tang and Tang's ranking approach dysfunctional. It is demonstrated that the concept of a true rate of return, substituting for the non-performing IRR and applied in conjunction with the incremental approach, provides an adequate tool for ranking mutually exclusive projects or a project's technical or financial alternatives.     

A Review of: “UNCERTAINTY AND ITS EFFECT ON CAPITAL INVESTMENT ANALYSIS,” by Martin B. Solomon,Jr. Management Science,Volume 12, No. 8, April 1966

In this paper we extend Thompson's [17] work using time series models within the discounted cash flow framework to estimate the cost of equity capita] for a firm. In particular we do the following: First, we prove the existence and uniqueness of a solution for the cost of equity capital. Secondly, we verify that the cost of equity function is continuously differentiable and derive the formula for its reliability. Formulas for both the cost and its reliability are in terms of infinite sums or infinite dimension matrices. Thirdly, we derive estimators of the cost of equity capital and its reliability which are in terms of finite sums and easy to calculate. We show that these estimated converge to the cost of equity capital and its reliability. Finally, our procedure for estimation applies to a wide variety of time series models that may be used to forecast dividends.