Multiplant MRP

Many manufacturing firms have multiple manufacturing plants, located in geographically diverse parts of the world. This situation is becoming more common, as firms establish new plants in foreign countries to take advantage of low labor cost. In such cases, it is not unusual for the firm to retain production capability of certain key parts in a backup plant, with the necessary equipment and trained workforce in place. High volume production could be obtained relatively quickly from the backup plant in case of an emergency at the main supplying plant. In such multiplant settings, the transportation costs are significant. Throughout this paper, we use the term “multisourced parts” to describe parts produced in more than one location.Material Requirements Planning (MRP) is the component of a total manufacturing control system that is designed to manage inventory and plan orders for parts and material with dependent demand (demand derived from the demand of other items). Most of the literature on MRP systems discusses MRP methodology in a single-plant environment. Most MRP software systems in use today are single-plant systems.Currently, it is common for firms with multiple plants treated as cost centers to use an independent single-plant MRP system for each and handle the transshipment problems manually. Because of lack of coordination of production schedules between supplying and demanding plants, those firms hold more inventory and experience longer lead times than necessary to compensate for uncertainties in schedules and supply policies.The purpose of this article is to enhance single-plant MRP systems for coping with multiplant situations in which: the plants are regarded as cost centers, there exist multisourced parts, and the transportation costs are significant. The multiplant MRP system should recognize that parts are produced in different plants, make offset calculations for in-transit lead times, and consider transportation costs when establishing production requirements and shipping routes for multisourced parts. The objective is, beginning with the corporate-determined master schedule for finished products, to communicate in one planning cycle time-phased planned order release schedules and shipping/delivery schedules to each manufacturing plant producing components for the finished products.We first present a simplified framework for the multiplant MRP system, where a transportation algorithm is incorporated into the MRP logic. Then we refine this simplified framework to handle more complex aspects of a multiplant network. These complexities include the treatment of requirements that are not shipped on time and the regeneration of new MRP schedules. We also observe that the solution to the transportation problem described above is affected by the lot-sizing rules employed. In addition, we discuss several important issues and decisions that confront a firm when implementing a multiplant MRP system.     

Empirical regularities in black markets for currency

This paper develops a model of the black or parallel market foreign exchange rate. This rate is seen to depend upon the level of the official rate, the (unobserved) equilibrium rate, the premium offered for exchange sold through the black market, and government reserve-level policies. The model is then empirically estimated for 10 countries over a period from 1957 through 1983. The results generally support the model specified by theory. Additionally, the paper provides weak-form tests concerning the efficiency of the black market. The results cannot reject the hypothesis that the current black market rate incorporates all relevant historical price information.     

Research and development policy in the USA: Implications for satellite communications

Research and development in fields as diverse as microelectronics and space vehicles have profoundly affected the technologies of information transmission, as well as the way in which government regulates the communications and information service industries. This article focuses on R&D policy in the USA, drawing from 1984 OTA reports. The article focuses briefly on industry and universities and at greater length on government actions and policies, indicating possible implications for communication satellites.     

Closed-End Fund Expenses and Investment Selection

Investment returns on closed‐end funds are highly volatile. Because expenses have a definite negative impact on closed‐end fund returns, investors should include the expense ratio as a criterion for fund selection in addition to performance, investment objective, and risk of the fund. This paper constructs a model of the expense ratio of closed‐end funds to explain cross‐sectional differences in the expense ratios for the period between 1989–1996. We relate closed‐end fund expenses to fund characteristics and identify the factors that can help investors choose low expense closed‐end funds.