A partial backordering approach to inventory control

We study the effects of using a partial backordering approach to controlling inventories under deterministic and stochastic demands, respectively. With a deterministic demand, our model is built with the objective of minimizing the total cost of ordering, holding, backordering and lost sales. The conditions for the partial backordering policy to be feasible are identified and a pair-wise comparison among the no-backordering, complete backordering, and partial backordering doctrines is conducted. In the stochastic case, we focus on a make-to-stock system with a Poisson demand and exponential production time, which allows us to establish a queuing model to examine the cost-effectiveness of using partial backorders. The conditions under which the partial backordering policy outperforms the complete backordering policy are identified.     

Codes of ethics and firm size: A stakeholder approach to strategic planning

A firm's capital budgeting and strategic planning decisions have the potential to affect many groups of people called stakeholders. A stakeholder is any group or individual who can affect or is affected by the achievement of the firm's objectives. This study examines whether the presence of a code of ethics that specifically addresses capital budgeting/strategic planning decisions will significantly raise the awareness of social responsibility during the long-run planning process. This study also examines whether firm size is associated with the awareness of social responsibility during the long-run planning process. Support was found that a code of ethics that addresses long-range planning is associated with higher awareness during the planning process. Firm size was not found to be statistically different.     

A multicriteria outranking approach for modeling corporate credit ratings: An application of the Electre Tri-nC method

Corporate credit ratings are widely used in financial services for risk management, investment, and financing decisions. In this study, the use of a recently developed multicriteria outranking approach, namely the Electre Tri-nC method, is examined for constructing internal credit rating models in an expert-based judgmental framework. The models are constructed in a multicriteria classification (sorting) setting and the results are analyzed in terms of their internal properties as well as their deviations from risk rating categories defined by rating agencies (i.e. external benchmarking). A simulation/scenario analysis is conducted to examine the results and performance of the outranking models in relation to their parameters. Empirical results are provided for a sample of European firms rated by three leading rating agencies.     

A general approach to disassembly planning and control

Closing product and material cycles have emerged as a paradigm for industry in the 21st century, and are directed towards an economical and responsible use of our limited resources. Disassembly plays a key role in recycling. It enables the recovery of functioning components for re-use of pure materials for re-utilization and the separation of harmful substances. Major challenges are presented by the enormous variety of products to be disassembled, by uncertainty as to quantity and by their unknown properties. An appropriate planning and control of disassembly processes is essential for an economic disassembly. Based on an investigation of the suitability of common production planning and control (PPC) methods for disassembly, a specific disassembly planning and control concept (DPC) is outlined.     

A strategic planning approach to the establishment of faculties for advanced technology in Egypt

The first part of the paper presents a strategic planning system applicable to higher education institutions. Four levels of strategy are identified: (1) institutional strategy; (2) faculty-wide strategy; (3) program strategies; and (4) program level functional strategies. The second part addresses strategic issues relating to the institutional strategy for a proposed “Faculty of Electronics and Industrial Technology” to be established in the Benha industrial region. The paper recommends a formation scheme based on a multi-stream, modular approach geared to industrial and technological human resources requirements for technologists in the Benha region. The options offered lead to a Bachelor of Technology, B.Tech., after five years of study in one of the following specializations: Manufacturing Technology and Production Management; Mechanical Systems and Materials Technology; Control, Instrumentation and Fluid Power Technology; Command, Control, Communication and Informatics (C³I) Technology. The proposed study programs are based on a sandwich approach with heavy involvement from industry in the implementation of four training modules.     

A decision-based approach: application to the automatic design of process planning

The notion of centre of decision presented in this article defines a conceptual and generic model enabling us to represent and use expert knowledge. It is suitable when the problem to be solved can be broken down into a sum of interdependent subproblems. Actions can be planned progressively and previous decisions can he modified by a backtrack mechanism. This principle is iterative. The structure is made up of many independent rules and an action plan. The customization of the application is possible even if the software evolves with future updates. This model has been applied in the LURPA-TOUR software which is a computer-aided process planning system for rotational parts.     

Using strategic planning to drive strategic change

This article describes a case history of strategic planning, learning and change within a major division of Dowty plc. At Dowty CASE, a telecommunications company, the management team used strategic planning as a structured learning process to generate strategic change. There are many lessons which academics and practitioners alike can learn from this case of strategic planning and change in action.     

Managing strategic change: An integrated approach

This paper sets out to identify and discuss an integrated approach to the management of strategic changes. Managing effectiveness, dealing with organizational cultures and managing organizational politics are discussed, focusing upon how to do so in order to encourage risk-taking, creativity and learning and to build self-esteem and performance. Such an approach allows the achievement of major changes in ways which lead to employees developing a fuller understanding of the nature of the business, its problems and its future.     

Production planning and inventory control in a company manufacturing PC parts: A case study

In this paper, we present a case study on the production planning and inventory system in a company manufacturing personal computer (PC) parts. In the case study, the targets are specified for developing a system for production planning and inventory control. The current state of the company is analysed for clarifying the points necessary to achieve the targets. Also, a system based on the analysis is proposed and its effects are estimated.     

A Meta-Goal Programming approach to cardinal preferences aggregation in multicriteria problems

Solving multicriteria decision making problems often requires the assessment of certain preferential information. In some occasions, this information must be given by several individuals or social groups, and these individual assessments need to be aggregated into single global preferences. This cardinal preferences aggregation problem has been tackled using different techniques, including multicriteria decision making ones. In this paper, a Meta-Goal Programming approach is proposed, where different target values can be set on several achievement functions that measure the goodness of the global assessments. This methodology presents strong advantages due to its modeling flexibility and its ability to find balanced solutions. The proposed approach is demonstrated with an illustrative example and a series of computational experiments, and it is shown that the Meta-Goal Programming method produces results with better values of the achievement functions than other classical and multicriteria approaches.     

Hospital and medical staff strategic planning: developing an integrated approach

The physician as the principal customer of the hospital is a relatively new concept, indicative of the shift to a more complete market orientation in strategic planning. Although medical staff and medical community dynamics receive increasing attention in strategic planning, much more sophistication is now needed to involve physicians constructively in strategic planning for the hospital and medical staff. While full consonance of physician and hospital plans may be achievable only in a completely integrated delivery system, there is considerable room for improvement in current organizational models.     

An early warning system for strategic planning

Early warning indicators, weak or strong signals, alert coefficients, early warning or recognition systems and other terms can be found more and more frequently in the business related literature. Some progress-minded companies have adopted the theory and are about to initiate operational future observation systems, well adjusted to their own objectives. The author points out the significance and the advantages to a company of introducing an early warning or early recognition system and discloses the risks and problems that are associated with an improper implementation. He then outlines the different ways of utilizing the instrument of strategic early recognition for large and medium-sized enterprises.     

A national strategic planning model

Can nations choose among several possible futures, or is the future pre-determined on the basis of geographic, demographic, cultural, economic and political features? The author maintains that newly developing patterns may well change the traditional deterministic characteristics of society, and that it is possible for nations to be masters of their own future. This will depend on the development of sophisticated and democratic national planning processes.     

A methodological approach to strategic petroleum reserves

Energy constitutes a small fraction of the production inputs in the economy, yet the rigidity imposed by the short and medium term inability to substitute energy with other production factors in case of an energy shortage, requires the establishment of safeguard mechanisms to ensure sufficient energy supply during an emergency. These safeguards usually take the form of strategic energy reserves. A methodological approach is presented here, relating the level of strategic petroleum reserves, the decision variable, with the costs associated with their storage and the economic losses incurred by an energy shortage. This approach is based on the use of a decision tree, to portray emergency scenarios. Each scenario, a branch of the decision tree, can be evaluated in terms of a cost function which includes the inventory procurement and maintenance cost and the shortage cost inflicted by a petroleum shortfall.     

Strategic planning—A contingency approach—Part 1. The strategic analysis

This article emphasizes a certain approach to business strategy formation exercise, i.e. the adaptive mode. As the 1970s emerge into the uncertain 1980s, and as sophisticated extrapolation is becoming increasingly valueless, there is an even greater case for business planning with the required degree of responsiveness built into it. The authors support this case from literature survey and an actual case study. This is the first of two articles on this subject.     

Evaluating alternative approaches to strategic planning

The question which, unfortunately, often goes unanswered, is whether a company's process of corporate planning is optimal. Furthermore, even if they wished to answer such a question there is little in the literature which can provide them with a direct, and explicit evaluative model. This paper examines the development of planning and the many different contributors towards its theoretical underpinning. Whilst recognizing that planning is a field which is a ‘semantic's jungle’ the authors carefully pick their way through the mine-field of misunderstanding and misquotation and clearly establish a base-line for evaluation and indeed propose a detailed methodology. It is hoped that this paper will be a fore-runner of many which will assist the executive in his important evaluative role concerning alternative planning approaches.     

Locating service offices: a multicriteria approach

The problem considered is the location of regional service offices in the expanded operating territories of a large property and liability insurer. These offices serve as first line administrative centers for sales support and claims processing. The location of the regional service offices is determined through a zero-one linear multiple objective programming model. The criteria and constraints of the model reflect investment and operating costs, budget considerations, and a measure of the service level provided.     

A commonsense approach to portfolio planning

For the diversified firm, business portfolio planning offers a way of determining its individual businesses' roles and developing a synergistic corporate strategy. In practice, however, the common tools of portfolio planning—the growth/share and market attractiveness/business position matrices—present problems in that often neither of the matrices is precisely suitable for a given individual business. This article makes use of modifications of the growth/share and market attractiveness/business position matrices in order to make them more operational. The authors believe that a step-by-step ‘shirt-sleeve’ approach to portfolio planning can make this type of analysis accessible and invaluable to a small diversified firm, as well as providing insights to larger corporations with formal planning departments.     

A new approach to corporate planning

A fresh approach to planning can help corporate executives deal with such long-range planning problems as the setting of unrealistic plan targets by division managers and a poor record of long-range plan implementation and control. This article considers such an approach.     

A business development approach to planning

In recent years there has been disappointment within industry at the relative failure of strategic planning techniques to contribute significantly to improved business success. Furthermore, this disappointment has tended to grow as planning specialists and academics have developed more complex planning techniques in terms of quantitative and financial models to counter the problem.

In this article, the author states that strategic planning needs to be project oriented, i.e. to adopt a business development approach rather than the present technique of a procedural oriented approach, if the potential rewards are to be realized in practice.