Optimal and Approximate Policies for Inventory Systems With Order Crossover

A common assumption in inventory analysis is that replenishment orders arrive in the same sequence in which they were placed. In practice, however, a variety of factors may cause orders to arrive out of sequence, a phenomenon known as order crossover. This article analyzes a periodic‐review inventory system for a single item with discrete variable demand and discrete variable and long lead‐times (relative to the review period). Under such a scenario, multiple orders are simultaneously outstanding, and orders may arrive in a different sequence than placed. If such order crossover occurs, traditional inventory analysis overstates expected shortages and standard inventory control policies are no longer optimal. This article discusses why orders may cross over in practice and investigates the implications of order crossover to inventory management policies. We investigate the cost performance of optimal policies under order crossover and also suggest approximate policies which are easier to compute and implement. Both the optimal and approximate policies take advantage of detailed real‐time information about the status of pending orders and goods in transit, and hence in a majority of cases perform better than commonly used policies which do not incorporate such information.     

Credence Good Labeling: The Efficiency and Distributional Implications of Several Policy Approaches

A model of vertical product differentiation is used to analyze the labeling of credence goods, focusing on the manner by which quality is communicated. The results indicate that firms prefer private labeling options. In addition, firms may hire private certifiers as well as paying for mandated government labels when the government's quality benchmark substantially deviates from firms' private quality choices. The average consumer prefers a mandatory, discrete label with a high-quality standard while poor consumers prefer a mandatory, discrete label with a low standard.     

A note on the relationship between obesity and driving

Vehicle travel and obesity rates in the United States have surged in recent decades. This paper contributes to the mounting evidence of a link between them by drawing attention to a very close relationship between trends in miles driven per licensed driver and adult obesity rates six years later. It also presents evidence on why the effect might be expected to be lagged by six years. A simple model is produced, which predicts reductions in obesity rates over the next few years. If these reductions come about, the model will be seen to offer a powerful insight into the relationship between driving and obesity. If the relationship is more than coincidental, it has implications for transport policy and supports the development of a multi-pronged, interdisciplinary approach to tackle increased driving and obesity.     

Cultural change--empowerment at Sweetheart Cup Company, Inc., Bakery Division

Sweetheart Cup Company always has been associated with fun products--fast food containers, straws, ballpark drink glasses, and maybe the most fun of all--ice cream cones! But making these products of pleasantry at times has not been as festive as it would seem. Sweetheart Cup Company has had its ups and downs in terms of many of the typical manufacturing measurements, but in 1994--under the direction of newly appointed Chief Operating Officer Bill McLaughlin--Sweetheart Cup Company embarked on a new mission. This time everyone would be involved, from headquarters staff in Owings Mills to the fourth-floor oven area workers in the Dallas bakery. The new process goal, "Business Excellence," as we called it, was really an implementation of Class A ERP/MRP II.     

The Value Relevance of International Financial Reporting Standards: Empirical Evidence in an Emerging Market

This study examines the value relevance of accounting information under International Financial Reporting Standards (IFRS) in the Abu Dhabi Stock Exchange (ADX, henceforth). Based on models developed by Easton and Harris (1991), and Ohlson (1995) and using monthly market data from 2000 to 2006, this paper investigates the value relevance of accounting information of firms traded on the ADX. Our overall results show that earnings scaled by beginning of period price are positively and significantly related to cumulative returns and that earnings per share and book value per share are positively and significantly related to price per share. We also find that value relevance of accounting information has changed since the market inception in 2000. The results documented herein extend the literature on value relevance accounting information in an emerging market that requires the use of IFRS. The study therefore contributes to the debate over the mandatory adoption of IFRS and the value relevance of accounting information reported under IFRS.