Currently practiced formulations for the assembly line balance problem

New formulations for the assembly line balance problem are proposed based on interviews and surveys of practicing engineers. These formulations are the basis for a model in goal programming form. A branch-and-bound algorithm is developed which can solve the model for an optimum solution. Computational studies show that computer run time is very modest for moderate size problems.Interviews and a survey of practicing engineers were used to develop a list of goals or constraints germane to the assembly line balance problem. These included minimizing working areas or employees, making sure tasks assigned to a station do not exceed the cycle time, and adhering to sequence constraints. These constraints are included in most traditional models. However, additional goals were mentioned. These included avoiding changes in workload assigned to a work area, adhering to layout requirements of the plant, making combinations of tasks interesting, avoiding the combination of physiologically demanding tasks, etc.The additional goals above are incorporated in a new formulation for the assembly line balance problem. This formulation is in goal programming form. The goal programming model attempts to minimize deviations from goals. If deviations are necessary, lowest ranked goals are violated first. The objective function of the model is based on an ordinal ranking of goals only. The survey mentioned above showed that engineers did not find it difficult to rank the importance of goals.The proposed goal programming model is a mixed integer linear program. Previous studies have shown that cutting plane and implicit enumeration techniques are inferior to branch-and-bound algorithms. A branch-and-bound method, called GoalOriented Algorithm for Line Balance (GOAL), is developed to solve the formulations proposed in the paper.GOAL was computationally tested with 50 problems. These problems varied in size from 4 to 35 tasks. One of the problems was an engine cradle assembly problem encountered by an automobile manufacturer. Computer run times appeared reasonable. For example, the engine cradle problem 35 tasks) required only 16.3 seconds CPU on the DEC PDF at California State University, Northridge. GOAL's execution time appeared linearly proportional to the number of tasks required for most problems.     

Tactical product decisions

The focus of this article is a discussion of both how and when to make tactical product decisions for existing products. Although the literature refers to these decisions in the context of strategic planning, the author considers that it is inadequate in explaining how and when these decisions should be arrived at relative to tactical planning. A range of criteria for tactical decisions is proposed.     

Research notes and communications management objectives in mergers and acquisitions

A taxonomy of managerial goals in mergers and acquisitions is developed through a cluster analysis of data from interviews with merger and acquisition practitioners. These clusters of objectives overlap with some objectives cited for mergers and acquisitions in the academic literature, but the correspondence is not complete. Further analysis shows that different types of mergers and acquisitions are characterized by different managerial objectives. The implications of this research for the development of a contingency model of the relationship between managerial objectives and mergers and acquisitions are discussed.     

A comparison of the financial institutions' view and the market's view of country creditworthiness

In 1979, both Institutional Investor and Euromoney began publishing country risk ratings. For years, international commercial bankers have used these rating services as part of their international evaluation process for lending to sovereign governments. An examination of these services suggests that Institutional Investor's ratings, which are based upon questionnaire responses from commercial bankers, reflect the financial institutions' perception of country creditworthiness. On the other hand, Euromoney's ratings represent a market view in that they are based upon data observed from financial and credit markets. The purpose of this article is to investigate the consistency between the financial institutions' view and the market's view in assessing the creditworthiness of developing and newly industrialized countries.     

AGENCY COSTS AND CAPTIVE FINANCE SUBSIDIARIES IN CANADA

Agency theory is employed to formalize the intuitive rationale for the widespread practice of setting up captive finance subsidiaries: reduced agency costs of debt increase the firm's consolidated debt capacity. Of the two Canadian industries tested, firms forming captives had significantly higher use of debt in manufacturing but failed to show any significant difference for merchandising. In light of confounding influences from tax-clientele effects, size difference, and support in tests on U.S. firms, the mixed finding should encourage further testing. The outcome of these tests suggests that it is potentially useful to think of captive finance subsidiaries in light of agency theory.