Strategy in research design and hypothesis testing

The efficiency of a research design may be measured in terms of the degree to which knowledge is enhanced within given resource constraints. Thus, two different types of research design, even though they contain the same number of expected observations, may differ considerably in the amount of information provided. An example is the number N of 32 observations obtained with an analysis of variance witheither 2 factors, 2 levels per factor and a replication of 8or 4 factors, 4 levels per factor and a replication of 2. We analyze and compare the relative efficiencies of regression and variance analysis models and their implications to research strategy development. Three major considerations are evaluated: (1) short versus long time horizon (interval until effects of a decision are realized), (2) small versus large cost of erroneous rejection of the Null Hypothesis and (3) gross versus refined stage of development of the research study. A set of general guidelines towards improved designs is developed.     

Managing unofficial inventory: a piece of the materiel management foundation

The implementation plan will remain the same: target an area of opportunity, measure and document the amount and value of the unofficial inventory, establish PAR levels, implement the use of hand-held terminals to assist in inventory control, and integrate inventory control with the implementation of new programs that will impact ordering, receiving, distribution, and invoicing. It is anticipated that the inventory in the main OR alone can be reduced by $1.5 million if we move forward with a stockless JIT system. This would reduce the days of inventory on hand from approximately 100 days to between 7 and 14 days. This could also mean a holding cost reduction of $150,000. The merit of reducing unofficial inventory is evident. Managing unofficial inventory is merely one piece of the successful materiel management foundation. The other foundation pieces include contract compliance and price negotiations, systematic methods of ordering products, and timely distribution of products to the end user. PHS cannot effectively move forward to a new, innovative materiel system for the future until we first measure, analyze, and document the present conditions. Once the foundation is laid by improving present business practices, then the framework of the structure can be designed and constructed. The goal is to implement a system that utilizes the full potential of people, equipment, logistics, and information so that our customers, the patient caretakers, do not have to worry about anything except the delivery of quality care.(ABSTRACT TRUNCATED AT 250 WORDS)     

Multi-Dimensional Procurement Auctions for Power Reserves: Robust Incentive-Compatible Scoring and Settlement Rules

System operators in the electricity industry purchase reserve capacity in a procurement auction in which suppliers offer two-part bids, one part for making capacity available and another part for supplying incremental energy when called. Key ingredients of an efficient auction design are the scoring rule for comparing bids, and the settlement rule for paying accepted bids. We use the principle of incentive compatibility to establish that very simple rules suffice. In particular, the scoring rule uses only the capacity part of the bid, and energy supplies are paid the spot price. This is the design adopted in California.