Inventory of differential items selling from two shops under a single management with periodically increasing demand over a finite time-horizon

Inventories of differential items including the defective ones purchased/produced in a lot and sold from two shops (primary and secondary shops) under a single management are considered here over a finite time-horizon. A primary shop receives the differential units in a lot but sells only the non-defective ones whose demand periodically increases with time and decreases during the shortage period in such a way that it comes back to the initial value at the beginning of the next cycle. Hence in this shop, shortages are allowed and fully backlogged. Moreover, at the beginning of the next cycle, the retailer purchases purely non-defective units at a higher price to meet up the shortage amount along with the usual lot of differential units for regular sale. The defective units identified at the time of selling at the primary shop are continuously transferred to the adjacent secondary shop from which the defective ones are sold at a reduced price after some rework. Normally, the price of a defective item is fixed depending upon the quantum of its defect and people go for these items if they are cheap. Hence, demand for these units is dependent on the selling price, which is again inversely proportional to the rate of defectiveness. There may be five scenarios for dealing with defective units depending upon the coincidence of the time periods at two shops. For all scenarios, problems have been mathematically formulated and solved by the use of both parametric study and a gradient-based non-linear optimisation method. The models are illustrated with the help of numerical examples.     

Is financial reporting shaped by equity markets or by debt markets? An international study of timeliness and conservatism

We hypothesize debt markets—not equity markets—are the primary influence on “association” metrics studied since Ball and Brown (1968 J Account Res 6:159–178). Debt markets demand high scores on timeliness, conservatism and Lev’s (1989 J Account Res 27(supplement):153–192) R ², because debt covenants utilize reported numbers. Equity markets do not rate financial reporting consistently with these metrics, because (among other things) they control for the total information incorporated in prices. Single-country studies shed little light on debt versus equity influences, in part because within-country firms operate under a homogeneous reporting regime. International data are consistent with our hypothesis. This is a fundamental issue in accounting.     

Redesigning the human resources function at Lafarge

This article describes the detailed process of redesigning and implementing the human resources (HR) function at Lafarge. The article argues that a well‐articulated and integrated approach of (1) recruitment, selection, and induction, (2) retraining and redeployment, (3) a performance appraisal system, (4) a compensation and reward mechanism, and (5) rightsizing and (6) integration is required to be aligned with the overall business strategy of the organization. It also reinforces that the foundation of a value‐added HR function is a business strategy that relies on people as a source of competitive advantage. Key challenges for Lafarge in the future include (1) maintaining the change momentum, (2) fast and effective integration of acquired companies and transfer of “best practices,” and (3) attracting and retaining a diverse workforce through their internationalization program. © 2004 Wiley Periodicals, Inc.     

Crime and moral hazard: Does more policing necessarily induce private negligence?

Even risk-neutral individuals can insure themselves against crimes by combining direct expenditure on security with costly diversification. In such cases — and even when one of these options is infeasible — greater policing often actually encourages private precautions.     

Culture-Based Values and Management Style of Marketing Decision Makers in Six Western Pacific Rim Countries

ABSTRACT

Given increasing advertisement clutter, advertisers are increasingly trying unconventional means to attract consumers' attention. One such method involves the use of incongruent ads, which are believed to attract viewers' attention. This research was conducted to ascertain the impact of audiovisual congruency in ads and the moderating role of product involvement on three facets of consumer response: attention to the ad, attention to the brand, and purchase intentions. Participants were shown one of eight TV ads for 30 seconds, following which they were asked to rate the ad on several dimensions. Results indicated, as expected, that congruent product and music type elicited favorable consumer responses. However, contrary to earlier findings that congruency in ads affects consumers in both high- and low-involvement conditions, we find that that the level of involvement moderated this effect on some consumer persuasion measures. In particular, participants under high-involvement conditions were found to be less influenced by congruent product–music situations. Implications for advertisers are discussed.     

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Does purchasing power parity survive political shocks in South Africa?

Does Purchasing Power Parity Survive Political Shocks in South Africa? — The objectives of the paper are to examine the Purchasing Power Parity (PPP) hypothesis for the South African economy during the period 1975–1994 using high-frequency data. The analysis is conducted both for the entire period and also for different subperiods in order to take into account possible structural changes. For the rand/ dollar exchange rate, the authors find on the basis of a unique long-run cointegrating relationship that there is significant evidence supporting the PPP hypothesis for the entire period. The use of nonlinear least squares and Johansen-Juselius procedures is made to reach the above conclusion.     

Internationalization of R&;D in China and India: Conventional wisdom versus reality

In spite of a growing trend of foreign research and development (R&;D) investment in China and India, academic research in this field has not kept pace. To what extent are opportunities and challenges of managing R&;D different in these countries from those in the West? By drawing on academic literature as well as press articles on this topic, we compare and contrast what the conventional wisdom suggests and what the realities are in China and India. We suggest that multinational corporations (MNCs) should not forget the conventional wisdom of managing their innovative R&;D policies but should also learn from the unique challenges and capabilities in China and India.