Economic production quantity model with imperfect-quality items, two-way imperfect inspection and sales return

In practices, not only production but inspection processes are often not perfect, thereby generating defects and inspection errors. Previous imperfect-quality inventory studies, however, have mostly focused on developing cost-minimizing models that do not consider imperfect inspection processes and related defect sales return issues despite their practical significance. Thus, this study proposes a profit-maximizing economic production quantity model that incorporates both imperfect production quality and two-way imperfect inspection, i.e., Type I inspection error of falsely screening out a proportion of non-defects and disposing of them like defects and Type II inspection error of falsely not screening out a proportion of defects, thereby passing them on to customers, resulting in defect sales returns. We also consider rework and salvage in disposing of screened and returned items. Then we solve the model optimally and present numerical sensitivity analyses to provide important managerial insights into practices.     

Real money balances as factor saving media: A note

Conclusion A variety of specifications and arguments have been presented in the past in dealing with money in the production system. The most plausible role of money in production seems that it saves production factors as an indirect servicing medium facilitating exchanges and other transaction activities. Based on this hypothesis, real money balances were introduced into the input demand equations in a simultaneous production-equation system. It has been found thatm ₁ plays a more significant factor-saving role thanm ₂ and it saves capital more than labor. Considering the theoretical merits and the statistical consistency of our model, it is suggested that in macro model building real money balances should be treated as input-saving media appearing in the input demand equations rather than direct production factors to be included in the production function.     

INVENTOR PRODUCTIVITY AND FIRM SIZE: EVIDENCE FROM PANEL DATA ON INVENTORS

It has long been recognized that worker wages and productivity are higher in large firms. Moreover, economists have been interested in the efficiency of large firms in R&D enterprises. This paper uses inventor panel data to examine the relationship between inventor productivity and firm size in the pharmaceutical and semiconductor industries. In both industries, we find that inventors' productivity increases with firm size even after controlling for inventors' experience, education and other firm characteristics. We find evidence in the pharmaceutical industry that this is partly accounted for by differences in the way in which large and small firms organize R&D activities.     

Impact of Technology-Based Self-Service on Employees, Customers, and Sales in the Korean Services Market

For service providers, efficient production and delivery is becoming increasingly important. If customers can play the role of partial employees when participating in the service production and delivery, service providers can reduce the workload and achieve higher productivity. This study’s purpose is to investigate the impact of technology-based self-service (TBSS) which is designed for improvement of operational efficiency of service organizations on employees, customers, and sales, especially focused on South Korea’s service market. In-depth interviews with managers of large service providers and a questionnaire survey of employees were used as the research method. Our findings indicate that technology-based self-service positively influences employee satisfaction, but it provides disadvantages in sales, and in customer satisfaction when the services fail. Moreover, some interesting results were identified. We present the details of the statistical results and the implications found from the study.     

Who likes jargon? The joint effect of jargon type and industry knowledge on investors’ judgments

We experimentally investigate how jargon affects investment willingness for investors with different industry knowledge, and whether such effects vary with good or bad jargon. We find that for investors without industry knowledge, jargon decreases investment willingness because it decreases understanding. However, for investors with some but low industry knowledge, jargon increases investment willingness because it increases perceived product premium. Such effects exist whether good or bad jargon is used. Finally, investors with high industry knowledge differentiate between good and bad jargon, and reduce investment willingness only when bad jargon is used. These findings have implications for regulators, managers, and investors.     

Locally Sourced Restaurant: Consumers Willingness to Pay

This study tested (1) the theory of planned behavior to identify factors influencing customers’ willingness to pay more when visiting a locally sourced restaurant, and (2) assesses the effect of health consciousness and community attachment on willingness to pay more through attitude, subjective norms, and perceived behavioral control in visiting a locally sourced restaurant. A total of 423 responses were analyzed using a two-step approach of structural equation modeling. The findings indicated that health consciousness and community attachment positively influences attitude, subjective norm, and perceived behavioral control in visiting a locally sourced restaurant, which ultimately influence willingness to pay more.     

Developing sustainable rural tourism evaluation indicators

This study is to develop indicators that measure sustainable rural tourism development within a sustainable framework. It was conducted via a Delphi technique and the analytical hierarchy process method. After three rounds of discussions, the panel members reached consensus on a set of 33 indicators with four dimensions. This set of community‐based rural tourism development indicators can serve as a starting point for devising a set of indicators at the local and regional level in order to be useful rural tourism sector manager and administrators. The selected indicators are measureable, demand driven and practical to show the real performance in rural destination. Copyright © 2010 John Wiley & Sons, Ltd.     

A Latent Class Nested Logit Model for Rank-Ordered Data with Application to Cork Oak Reforestation

We analyze stated ranking data collected from recreational visitors to the Alcornocales Natural Park (ANP) in Spain. The ANP is a large protected area which comprises mainly cork oak woodlands. The visitors ranked cork oak reforestation programs delivering different sets of environmental (reforestation technique, biodiversity, forest surface) and social (jobs and recreation sites created) outcomes. We specify a novel latent class nested logit model for rank-ordered data to estimate the distribution of willingness-to-pay for each outcome. Our modeling approach jointly exploits recent advances in discrete choice methods. The results suggest that prioritizing biodiversity would increase certainty over public support for a reforestation program. In addition, a substantial fraction of the visitor population are willing to pay more for the social outcomes than the environmental outcomes, whereas the existing reforestation subsidies are often justified by the environmental outcomes alone.     

Governance Role of Auditors and Legal Environment: Evidence from Corporate Disclosure Transparency

In a sample of firms originating from 20 countries, we examine whether and how auditor size (our proxy for audit quality) associates with corporate disclosure transparency. While prior studies examine the relation between auditor size and several aspects of financial reporting quality (e.g. discretionary accruals, restatements, etc.), there is limited evidence on how auditor size relates to disclosure transparency. There is also mixed evidence on how auditor size relates to reporting quality in different legal environments. We find that auditor size is positively associated with disclosure transparency around the world and that the association is stronger in code law regimes than in common law regimes. The latter finding supports the view that audits play a greater governing role in weaker legal environments.