Optimization Modeling for Logistics: Options and Implementations

Logistics optimization has significantly grown in popularity over the last few decades. Improvements in computing power, modeling software, and the willingness of companies to invest time in the modeling effort have allowed models that were once too unwieldy to solve to optimality to be solved quickly. This has led to a more wide‐spread recognition by logistics managers of the potential advantages of using optimization. The scope of logistics optimization in companies and organizations has expanded to address strategic, tactical, operational, and collaborative decision making. Spreadsheets, an analytical tool familiar to managers, have played a crucial role in the expanded modeling efforts of companies. Although optimization’s role in logistics has grown tremendously, there still are areas that remain to be explored that will allow it to achieve an even larger and more successful role in the management of companies. Additionally, there are some models that are still too large or too complex to currently solve to optimality, despite the advances in computing power and modeling/solving software.     

Intentions to Report Questionable Acts: An Examination of the Influence of Anonymous Reporting Channel,Internal Audit Quality,and Setting

The Sarbanes–Oxley Act of 2002 requires audit committees of public companies’ boards of directors to install an anonymous reporting channel to assist in deterring and detecting accounting fraud and control weaknesses. While it is generally accepted that the availability of such a reporting channel may reduce the reporting cost of the observer of a questionable act, there is concern that the addition of such a channel may decrease the overall effectiveness compared to a system employing only non-anonymous reporting options. The rationale underlying this concern involves the would-be reporter’s likelihood of reporting, the seriousness with which the organization treats an anonymous report, and the organization’s ability to thoroughly follow-up the report. Thus, we explore the extent to which the availability of an anonymous reporting channel influences intended use of non-anonymous reporting channels. Further, in response to Sarbanes–Oxley and the environment of financial scandals that led to its passage, many firms are strengthening their internal audit departments, and providing them with greater independence from upper management’s direct control. Accordingly, our examination tests whether the intended use of the internal audit department as an internal reporting channel is greater when the internal audit department is of “high” versus “low” quality. Finally, the study investigates intended reporting behavior across three different cases (e.g., settings). Results show that the existence of an anonymous channel does reduce the likelihood of reporting to non-anonymous channels, that generally the internal audit department quality does not affect reporting to non-anonymous channels, and that case-setting affects the type of channel to be used. Implications from the study are discussed.     

REDUCING FAT IN THE U.K. DIET — SOME LEGISLATIVE FACTORS

A high fat diet has been associated with a number of clinical conditions and it is recommended that the quantity of fat in the U.K. diet be reduced. Many foodstuffs of high fat content sold in the U.K. are subject to compositional regulations. The authors illustrate how the current regulations are acting to perpetuate the high fat nature of these food items and show how amendment of the legislation would be a useful strategy leading to a reduction in fat intake.     

International joint ventures and the U.S. auto industry

In 1983 General Motors Inc. and Toyota Inc. formed a joint venture, the New United Motor Manufacturing Inc., to assemble autos in the United States. For Toyota, the venture was a first attempt to locate production in America. General Motors viewed the venture as a means of learning how to produce low-cost, high quality, small vehicles. Facing an onslaught of anti-union Japanese firms, the United Auto Workers had to demonstrate that unions would not be an impediment to Japanese production in the United States. By 1986 the venture was termed a success. This paper considers the welfare effects of international joint ventures among competing manufacturers, as applied to the U.S. auto industry.