A NORMATIVE RESOURCE TRANSFER MODEL

In this paper, the author suggests a methodology for facilitating interactive decision making in a decentralized organization by providing information which may result in the transfer of divisional resources. The resource-transfer information is generated at the beginning of the planning period so that the organization's production control and evaluation systems may be formalized.     

A MODEL OF ETHNIC CONFLICT

We present a model of conflict in which discriminatory government policy or social intolerance is responsive to various forms of ethnic activism, including violence. It is this perceived responsiveness—captured by the probability that the government gives in and accepts a proposed change in ethnic policy—that induces individuals to mobilize, often violently, to support their cause. Yet, mobilization is costly and militants have to be compensated accordingly. The model allows for both financial and human contributions to conflict and allows for a variety of individual attitudes (“radicalism”) towards the cause. The main results concern the effects of within‐group heterogeneity in radicalism and income, as well as the correlation between radicalism and income, in precipitating conflict.     

REPLICATION OF A CHOICE MODEL

This study provides an operational replication of a proposed multiattribute choice model. The necessity of replication in the decision sciences in general and in consumer behavior in particular is discussed. Several alternative forms of multiattribute choice models are considered. Results are supportive of earlier efforts in this area.     

THE ACADEMIC FLOW MODEL: A MARKOV-CHAIN MODEL FOR FACULTY PLANNING*

A Markov-chain faculty planning model to be used with institution-specific data is presented to describe and better understand the complex phenomena of faculty movement through an institution and on its relationship to salary costs, composition of the faculty, and faculty turnover rate. The model updates the earlier work done at Stanford University and Oregon State University by the addition of states for fixed-term appointments and for part-time FTEs to reflect accurately the current hiring trends at many institutions. The model is implemented and tested at two different institutions. The findings suggest that the model is a viable means of gaining useful insights and quantitative data on the faculty profile, salary costs, expected departures, and part-time trends. And further, when used as a planning tool, and the model apparently is comprehensive and flexible enough to analyze the probable effects, both in the short and long run, of alternative personnel policies on the faculty composition.     

A COST CENTER BASED RATE MODEL

The Surface Transportation Act of 1974 called for the Interstate Commerce Commission to “establish and maintain standards for determination of adequate rate levels.” The writer proposes a possible rate-making model based on a study made of Oklahoma distribution motor carriers that is readily adaptable to other forms of surface transportation.     

A MODEL FOR OPTIMIZING FACILITY DESIGN

A chance constrained programming model is developed to arrive at an optimal long-range design for a manufacturing facility. The determination of process capacities, the amounts of the various types of equipment, and the time-phasing of the acquisition constitutes facility design in the study. The expected cost is minimised, subject to probabilistic constraints which express the risk associated with demand forecasts. The model is solved by decomposing the deterministic equivalent. The structure of the model enables the solution to be obtained with one iteration. The algorithm is incorporated into a computer code which is applied to the design of a tire plant. The methodology has the potential of extendability to nonmanufacturing systems.     

A GOAL PROGRAMMING MODEL FOR OUTPUT PLANNING

This paper describes a goal programming procedure for determining satisfactory output plans for a work center. The situation being modeled is one in which work center inputs are known but vary significantly across time periods. Input levels are fixed relative to a given master production schedule, and output levels can be varied only within certain prescribed limits, at least in the short term. The similarity of the output planning problem to the more familiar aggregate planning problem is noted and discussed.     

PLANNING MAIL SURVEYS: A MANAGERIAL MODEL

Typically the market research manager faced with implementing a multiple-wave mail survey has certain requirements in terms of response rate, quality, and representativeness. The existing research literature provides some excellent insights into the effects of certain Wave 1 response stimuli. Unfortunately, very little research has been conducted on post-Wave 1 stimuli, and no research has been done on multiple-wave managerial strategy. The authors have developed a prototypic managerial planning model for evaluating various mail survey strategies over multiple-response waves. Subject Areas: Marketing Management and Marketing Research.     

A SINGLE-MACHINE SCHEDULING MODEL WITH FIXED-INTERVAL DELIVERIES

We consider an environment where a production facility modeled as a single machine needs to assign delivery dates to several orders and find a feasible sequence. Tardy jobs are not allowed. The delivery dates are to be at prespecified fixed intervals. The objective is to minimize the due date penalty and the cost of earliness. We provide a dynamic programming-based solution procedure that runs in polynomial time. We develop several dominance results that reduced the computational requirement by an order of magnitude in our computational study.     

A DYNAMIC PROGRAMMING MODEL FOR PERIODICAL SELECTION

This paper presents a model for choosing the periodical collection in a reading room. The model consists of two stages. In the first stage the probability distribution of contacts by users with a given periodical is developed and employed to determine the utility of the periodical. In the second stage the problem of choosing an optimum periodical collection is formulated as a capital budgeting problem and solved with the aid of dynamic programming. The implementation of this model at the University of Connecticut is described in detail.     

A DECISION MODEL FOR SELECTING ALTERNATIVE HYPOTHESES

One important aspect of experimental design is the decision whether to use a one- or two-tailed hypothesis test. Assuming that the sample size and the level of significance have been specified, the selection of an alternative hypothesis can materially affect the conclusion drawn from the experiment. In the past, this selection was made on a subjective basis or for pragmatic reasons which can bias the experiment. This paper suggests an expected value approach, maximizing the expected power of the test, to place the selection of alternative hypotheses in an objective and reliable decision framework.     

A MODEL FOR EVALUATING IMPERFECT CONTROL SYSTEMS

A model is developed for evaluating alternative control systems for an ongoing managerial process in terms of expected contribution per unit time under conditions of imperfect information. A variety of process failure distributions and economic characteristics are accepted by the model. An example illustrates the versatility of this approach for comparing alternative systems and for performing sensitivity analysis on process and control system parameters.     

A DYNAMIC OPTIMIZATION MODEL FOR PLANNING IN A MULTI-PRODUCT ENVIRONMENT

This paper describes an extension of the product mix problem and explicitly considers situations where demand can fluctuate over time. The additional decision variables and constraints that must be considered are described, and a revised objective function is discussed. The solution to the proposed linear programming formulation is compared to the traditional simulation and illustrates the potential for increased profits.     

A DISCRETE-IN-TIME PROBABILISTIC INVENTORY MODEL FOR DETERIORATING ITEMS

A probabilistic scheduling-period inventory model continuous in units and discrete in time is developed for deteriorating items where deterioration is assumed to be a constant fraction of the on-hand inventory. The model is developed under the conditions of instantaneous delivery and no shortages. An example followed by sensitivity analysis is given to illustrate the derived results.     

A GOAL PROGRAMMING MODEL FOR INSURANCE AGENCY MANAGEMENT

Rapid changes in the business environment have forced property and casualty insurance agencies to re-examine their objectives. The need to maintain contact with a large number of insurers in order to place business, efforts to reduce cost by utilizing company services, and the expanding demand for commercial lines have all had major impacts on these agencies. In this paper, a goal-programming model is developed for use in insurance agency decision-making involving multiple and often conflicting goals. An example is presented.     

A PENSION DECISION MODEL FOR THE EMPLOYER*

Recently, the Financial Accounting Standards Board (FASB) reevaluated accounting for pension plans. The issue is emotional and highly political in nature. The FASB attempted to justify its approach on the basis of measuring economic activity, but it failed to provide much in the way of analytical support. This paper provides a managerial decision model and an economic basis for the existence of pension plans. A pension plan is described as a cost-saving, risk-sharing, incentive contract. The analysis is developed using agency theory. The model presented here meets three suggested objectives of an employer: 1. Maximization of utility through the maximization of profit 2. Ability to conform the risk characteristics of an employment contract to the risk characteristics of the employer 3. Diversification of the risk inherent in the employment contract Profit is maximized by producing cost savings associated with employee tenure and loyalty. Sharing cost savings with employees (i.e., offering a pension plan) meets the above objectives. The employer determines the optimal sharing rate for the expected cost savings. An examination of the employer's underlying decision process reveals implications for pension plan accounting which generally are consistent with and support the FASB's Statement of Financial Accounting Standards No. 87 [5].     

A JOINT ECONOMIC-LOT-SIZE MODEL FOR PURCHASER AND VENDOR

In a typical purchasing situation, the issues of price, lot sizing, etc., usually are settled through negotiations between the purchaser and the vendor. Depending on the existing balance of power, the end result of such a bargaining process may be a near-optimal or optimal ordering policy for one of the parties (placing the other in a position of significant disadvantage) or, sometimes, inoptimal policies for both parties. This paper develops a joint economic-lot-size model for a special case where a vendor produces to order for a purchaser on a lot-for-lot basis under deterministic conditions. The focus of this model is the joint total relevant cost. It is shown that a jointly optimal ordering policy, together with an appropriate price adjustment, can be beneficial economically for both parties or, at the least, does not place either at a disadvantage.     

TURBULENCE AND UNEMPLOYMENT IN A JOB MATCHING MODEL

According to Ljungqvist and Sargent (1998), high European unemployment since the 1980s can be explained by a rise in economic turbulence, leading to greater numbers of unemployed workers with obsolete skills. These workers refuse new jobs due to high unemployment benefits. In this paper we reassess the turbulence‐unemployment relationship using a matching model with endogenous job destruction. In our model, higher turbulence reduces the incentives of employed workers to leave their jobs. If turbulence has only a tiny effect on the skills of workers experiencing endogenous separation, then the results of Ljungqvist and Sargent (1998, 2004) are reversed, and higher turbulence leads to a reduction in unemployment. Thus, changes in turbulence cannot provide an explanation for European unemployment that reconciles the incentives of both unemployed and employed workers. (JEL: E24, J64)     

A MATHEMATICAL PROGRAMMING MODEL FOR FACULTY COURSE ASSIGNMENTS

This paper describes an integer programming model that we believe has advantages over other models for determining faculty teaching assignments. Unlike previously proposed models, in this model the decision variables represent the assignment of complete teaching schedules rather than courses to faculty members. The paper compares the proposed model with previous models for application in an academic department.     

A CONCEPTUAL DESCRIPTION OF A FINANCIAL PLANNING MODEL FOR COMMERCIAL BANKS

This paper describes a conceptually sound and powerful model to aid bank managers in short and long range decision making for the management of the financial performance of the bank. The planning model is a key element in an integrated computer-based planning system which includes a forecast of economic, monetary, and loan market conditions, an analysis of internal relationships, and a system of reports which provide management with access to historical data and planning summaries. The planning model at the heart of the system, contains an imbedded linear programming algorithm to optimize “balance sheet management” decisions within liquidity and capital adequacy constraints. The model recognizes the interaction between assets and liabilities, it recognizes the time value of money, and it accommodates the difference between the net marginal yield for decision making, and the gross average yield used for determining revenue. Finally, the model recognizes the crucial role of liquidity with an important treatment of gross cash flows from normal asset turnover as a major source of liquidity, and the liquidity aspects of liabilities, as well as the more traditional concept of asset marketability.