The effect of downside risk reduction on UK equity portfolios included with Managed Futures Funds

The concept of asymmetric risk estimation has become more widely applied in risk management in recent years with the increased use of Value-at-risk (VaR) methodologies. This paper uses the n-degree lower partial moment (LPM) models, of which VaR is a special case, to empirically analyse the effect of downside risk reduction on UK portfolio diversification and returns. Data on Managed Futures Funds are used to replicate the increasingly popular preference of investors for including hedge funds and fund-of-funds type investments in the UK equity portfolios. The result indicates, however that the potential benefits of fund diversification may deteriorate following reductions in downside risk tolerance levels. These results appear to reinforce the importance of risk (tolerance) perception, particularly downside risk, when making decisions to include Managed Futures Funds in UK equity portfolios as the empirical analysis suggests that this could negatively affect portfolio returns.     

A robustness study of a multi-echelon inventory model via simulation

This paper examines the robustness of a standard model of multi-echelon inventory systems, specifically the models discussed in Axsäter (Oper. Res. 48(5) (2000) 686). A simulation model was developed to explore the model's ability to predict system performance for a two-echelon one-warehouse, multiple retailer system using (R,Q) inventory policies under conditions that violate the model's fundamental modeling assumptions. In particular, the impact of non-stationary demand on this stationary demand inventory model was examined. The model performs well at the low demand and large retailer order batch size situations, but our testing of the model indicated that care must be taken when applying this model to situations that violate its fundamental assumption. These results should help practitioners to better understand the assumptions of these models and to determine when or when not to apply these models in practice.     

Factors influencing organizations to improve data quality in their information systems

Although managers consider accurate, timely and relevant information as critical to the quality of their decisions, evidence of large variations in data quality abounds. This research examines factors influencing the level of data quality within a target organization. The results indicate that management's commitment to data quality and the presence of data quality champions strongly influence data quality in the target organization. The results also show that the managers of the participating organization are committed to achieving and maintaining high data quality. However, changing work processes and establishing a data quality awareness culture are required to motivate further improvements to data quality.     

The Fort McMurray demonstration project in social marketing: Health- and safety-related behaviour in a prosperous industrial community

Abstract

This is the first in a series of surveys conducted in Fort McMurray, Alberta, Canada, as part of the Fort McMurray Demonstration Project in Social Marketing. The Project is a community-based, cooperative program designed to demonstrate and to evaluate the application of social marketing and community animation to health- and safety-promoting interventions. This baseline survey was for the purpose of planning specific interventions and to support evaluation of the impact of these interventions. In 1992, a survey of Fort McMurray residents was conducted by telephone. Respondents to the survey tended to be disproportionately women (60%) and aged 30 to 44 (men 55%, women 54%). Most of the findings reported describe a generally affluent community with good self-reported health status and satisfaction in the quality of life. Occupational and personal health-and safety-related behaviours showed some contradictions. Both hearing protection and eye protection are much more frequently practiced at work than at home by both men and women. Protection from ultraviolet radiation, in the form of sunscreens or clothes cover, is practiced with about the same frequency at home or at work, suggesting that this behaviour is conditioned by lifestyle attitudes. Warm-up exercises are much more commonly practiced by both men and women before exertion at home than at work. We conclude that safety-related practices at home and at work are often at variance. The strategy of encouraging generalization of safety-related behaviours, to be practiced consistently both at home and at work, seems to hold promise for achieving greater compliance and promoting both community and workplace safety.