MODELING THE ALLOCATION OF GRADUATE STUDENT FINANCIAL AID

Universities have always competed with one another for the relatively small number of highly qualified students interested in graduate education. This competition has been intensified recently by adverse demographic trends. This paper is concerned with the use of financial aid awards as a means of competition and with allocation of awards so that enrollments are maximized while satisfying academic standards and budget constraints. It also considers the randomness of actual aid disbursements and develops models of incremental aid allocation that increase enrollments but are within tolerance levels for budget overruns.     

APPLICATION OF A PRODUCTIVITY MODEL FOR COMPUTER SYSTEMS*

The performance evaluation of computer systems as they impact on final user requirements for services is a complex task. A management-oriented approach to the issue based on conventional economic theory was described in a previous report as an outgrowth of a joint university-industry research project. In this sequel we report our experience in estimating, testing, and applying this conceptual model.     

TRANSFER-PRICING AND OUTPUT DECISIONS: THE DYNAMIC INTERACTION

This paper is concerned with the dynamic interactions between output and transferprice decisions in a three-country model for a multinational firm when profits taxation and ad valorem tariffs are applied simultaneously. A numerical example is used to illustrate that the three-country model modifies considerably conclusions reached in the traditional two-country, two-goods framework.     

THE INDUCE VERSUS PURCHASE DECISION: AN EMPIRICAL ANALYSIS OF INDUSTRIAL R&D*

With the recent slowdown in productivity growth within the economy, R&D has come under scrutiny as a policy target variable. If such targeting is to be effective, it must be realized that not all innovations employed within a firm are induced by the firm through its own R&D: many innovations are purchased through technological licensing or in the form of new capital equipment. Here, interfirm differences in this “make” versus “buy” strategy are analyzed within the context of the Utterback-Abernathy production process lifecycle. Our findings suggest that (1) alternative sources to a firm's R&D for stimulating innovation may prove a viable strategy for federal targeting and (2) extrapolating the Utterback-Abernathy model to an industry formulation has empirical validity.     

Applications and Implementation DATA-BASE MANAGEMENT SYSTEM EVALUATION AND SELECTION DECISIONS*

The rapid increase in the use of data-base management systems (DBMSs) has created a need for structured methods of evaluation and selection. This paper offers one such method. It develops a decision schema for data-base software selection that is data-model independent and contains structural associations. A decision analysis method, the analytic hierarchy process (AHP), is used to quantify the evaluation. The method developed in this paper is applied to the evaluation of two microcomputer DBMS products: dBASE II® and Condor 3®.     

ASSESSING INFORMATION SYSTEM VALUE: AN EXPERIMENTAL STUDY

Linear models of information system value that are a function of information attributes are empirically studied by having managers in two firms make assessments of the importance of attributes, the level of satisfaction produced by various levels of each attribute, and the overall value of total systems. The results verify that such models may be quite useful in information system design. It is also shown that ordinally ranked attributes work as well as the interval-scaled attributes in the linear model. Since ordinal measures are easier to obtain, this suggests that “linear ordinal” models may be the most practical method of quantifying information systems value.     

MAXIMIZING THE PROBABILITY OF ACHIEVING A TARGET PROFIT IN A TWO-PRODUCT NEWSBOY PROBLEM*

This paper explores the two-product newsboy problem. Solution procedures are developed to find the optimal production quantities of each product that will maximize the probability of achieving a profit target. The problem is shown to be surprisingly challenging, and numerical results obtained for only the more restrictive cases exhibit interesting behavior with important decision implications. For example, the results suggest that, if a firm has two single-product divisions and each will receive a bonus for achieving a profit target, it is beneficial for the two divisions to cooperate if the targets are lax and the profit margins are high, but not if the targets are tight and the profit margins low. Also, between two products having different profit margins, one should produce more of the product with the lower profit margin if the target is sufficiently lax. This exploration motivates further efforts in solving the two-product problem for the more general cases and also in extending the problem to three or more products.     

Graphical Presentations of Data Envelopment Analyses: Management Implications from Parallel Axes Representations*

The conversion of multivariate data analysis into information that managers can readily use in their decision making has always been a challenging task. In this paper we provide a parallel axis representation of multivariate data and demonstrate how this representation may be used as a tool for implementing the results of data envelopment analysis. We use an analysis of the efficiency of electricity generating plants to illustrate the technique.     

Dogmatism and Systems Development Personnel Performance

This research explores the relationship between the personal variable, dogmatism, and the performance evaluations of systems analysts within a Fortune 500 company. The Rokeach Dogmatism Scale was used to measure the analysts’ level of dogmatism. The analysts’ performance measurement was the product of the company's annual evaluation process. The results of the research indicate that personnel with the highest dogmatism scores generally receive the extreme performance ratings. The results of this study provide further support to consider dogmatism as an important personal variable influencing systems analyst job performance.     

A Goal Programming Model for Effective Segment Determination: A Comment and Application

This note presents a model for the effective market segment determination problem. The integer goal programming model was developed for a nonprofit health care organization. The approach is an alternative application of a model presented by McClure and Wells [7]. The model includes input from the organization's clients as well as the organization's decision makers. A distinctive element is the simultaneous development of market segments and the consideration of management, institutional, and resource constraints. The purpose of the model was to aid the decision makers in determining if effective market segments exist which can be reached with information and educational materials concerning infant nutrition and breastfeeding. The model was tested and found to be effective in helping the decision makers segment their clients.     

THE EFFECTS OF VARIABLE AND FIXED TRANSACTION COSTS ON OPTIMAL INVESTMENT DECISIONS

This paper studies the impact of variable and fixed transaction costs on investment decisions under conditions of risk. The decision model is first formulated as a mixed-integer nonlinear program. The following subjects are then examined: the structure of the investment frontier facing the investor and the effects of transaction costs on this frontier, the impact of transaction costs on the investor's optimal investment strategy, and the conditions for the equilibrium structure of risky asset prices and risk-return relationships. The main finding is that the relaxation of the assumption of the absence of transaction costs eliminates some of the most unattractive implications of the classic capital asset pricing model (CAPM) while preserving the more attractive implications of this model. Also, our model provides explanations for some discrepancies between the theoretical CAPM and empirical findings and, therefore, is a step toward narrowing the gap between theory and practice.     

Does IO Economics Really Make the Case for Investments in IT: Comment on West and Courtney

West and Courtney [18] rely on industrial organization economics in general, and the economics of uncertainty in particular, for insights into the benefits of overcoming information constraints through information systems (IS) and improved information technologies (IT). This Comment argues that the IS researcher who looks to the economics of uncertainty to make a case for improved IT will only find support from a selective reading of a constantly expanding literature whose aims and inferences are easily misunderstood.     

ON THE IMPLICATIONS OF SPECIFICATION UNCERTAINTY IN FORECASTING*

Forecasters typically select a statistical forecasting model from among a set of alternative models. Subsequently, forecasts are generated with the chosen model and reported to management (forecast consumers) as if specification uncertainty did not exist (i.e., as if the chosen model were the “true” model of the forecast variable). In this note, a well-known Bayesian model-comparison procedure is used to illustrate some of the ambiguities and distortions of forecasts that do not reflect specification uncertainty. It is shown that a single selected forecasting model (however chosen) will generally misstate measures of forecast risk and lead to point and interval forecasts that are misplaced from a decision-theoretic point of view.     

THE EFFECTIVENESS OF EXTENDING THE HORIZON IN ROLLING PRODUCTION SCHEDULING

In recent work, Baker [1] has investigated the use of rolling schedules for multiperiod production scheduling problems. One of his results is that the longest possible forecast horizon is not necessarily the best. He also found that the rolling schedules' effectiveness fluctuates widely depending upon the length of the forecast horizon. To smooth these fluctuations we have investigated use of forecasting to extend the problem horizon. Some of our results confirm the previous conclusions, but other results support the position that “the more information the better.”     

Applications and Implementation: AN EXPERIMENTAL COMPARISON OF CELLULAR (GROUP TECHNOLOGY) LAYOUT WITH PROCESS LAYOUT

This study compares different strategies for arranging machines in a facility. Computer simulation of two different machine shops was used to compare process layout (the arrangement of groups of machines where the machines within a group are interchangeable) to cellular layout designed using group technology concepts (the use of manufacturing cells where each cell contains different types of machines dedicated to the production of similar parts). Four layout strategies, including process layout, cellular layout, and two hybrid layouts, were compared in two machine-shop models. The shops that used cellular layouts had shorter setup times, lower machine utilization, and shorter distances traveled, on average. The shops with process layout, however, had better performance on queue-related statistics such as work-in-process inventory level and average flow time. This suggests that a well-organized traditional job shop may be able to achieve overall performance that at least is comparable to that of the same shop using cellular (group technology) layout.     

Applications and Implementation DECISION SUPPORT SYSTEMS: AN EMPIRICAL ASSESSMENT FOR DECISION MAKING

A laboratory experiment examined the effects of applying decision support system (DSS) technology to decision making in ill-structured problem environments under varying information conditions. Marketing executives participated in the experiment which investigated the effects of DSS availability, DSS training, and data availability on dependent variables that included: (1) the number of alternatives considered by a subject during decision making, (2) the period of time spent by a subject to complete the decision-making process, (3) the subject's perceived confidence in the decisions he or she had made, (4) the amount of data considered by a subject's during decision making, (5) the individual subject's decision processing, and (6) the subject's performance overall. Our results indicate that all three factors significantly affect the number of alternatives considered by subjects during the decision-making process. We therefore suggest that DSS training be coordinated with decision training in order to realize the potential of DSSs as described in the DSS literature.     

供应链管理对企业财务绩效的影响研究

文章选取我国2001-2006年间实施过供应链管理的上市公司前后共4年(从实施前一年到实施后两年)的数据作为样本,运用事件关联影响研究法并剔除行业均值的影响后进行实证研究以探究我国企业实施供应链管理的受益程度。实证结果显示:只有实施后第二年较实施前一年企业的现金周转期平均缩短了14.7天;管理和销售费用占比平均下降了1.01个百分点;营业利润率平均提高了2.49个百分点。其它业绩指标均没有显著的变化。从相关和回归分析的结果看,现金周转期的缩短导致管理、销售费用占比的下降,从而显著地驱动营业利润率的提高。本文的研究结果部分地回答了信息技术生产率悖论的问题,无论对学术界还是实务界均具有一定的现实意义。     

AN EVALUATION OF FORECAST ERROR IN MASTER PRODUCTION SCHEDULING FOR MATERIAL REQUIREMENTS PLANNING SYSTEMS.

Typical forecast-error measures such as mean squared error, mean absolute deviation and bias generally are accepted indicators of forecasting performance. However, the eventual cost impact of forecast errors on system performance and the degree to which cost consequences are explained by typical error measures have not been studied thoroughly. The present paper demonstrates that these typical error measures often are not good predictors of cost consequences in material requirements planning (MRP) settings. MRP systems rely directly on the master production schedule (MPS) to specify gross requirements. These MRP environments receive forecast errors indirectly when the errors create inaccuracies in the MPS. Our study results suggest that within MRP environments the predictive capabilities of forecast-error measures are contingent on the lot-sizing rule and the product components structure When forecast errors and MRP system costs are coanalyzed, bias emerges as having reasonable predictive ability. In further investigations of bias, loss functions are evaluated to explain the MRP cost consequences of forecast errors. Estimating the loss functions of forecast errors through regression analysis demonstrates the superiority of loss functions as measures over typical forecast error measures in the MPS.     

Utility‐consistent Brand Demand Systems with Endogenous Category Consumption: Principles and Marketing Applications*

This paper introduces the design and implementation of utility‐consistent, brand, and category demand systems. It extends formal demand analysis to the area of brand and category demand, which directly concerns marketing researchers and managers. The proposed brand demand system is a set of interrelated demand functions that are derived explicitly from a utility function describing consumer preferences. The model generalizes by the integration of category expenditures, which are determined endogenously. The theoretical plausibility of the proposed demand model is demonstrated first and, subsequently, brand and category level systems are derived. Econometric methods for estimating the systems are also developed and illustrated in empirical data. The results yield empirically determined, quantitative insights into the structure of consumer demand for brands and product categories. The proposed approach has the attractive feature of structuring the interdependencies of consumer decisions and ensuring an explicit role for theory in applied research.     

Applications and Implementation DETERMINING THE REWARDS SALESPEOPLE VALUE: A COMPARISON OF METHODS*

Although salesmanagers can attempt to motivate salespeople by manipulating their rewards, these manipulations will fail if salespeople do not value the rewards and their levels. Methods for determining valued rewards can therefore be important to those charged with their determination. This study compares three measurement schemes for assessing salespeople's valences for various rewards: functional measurement, conjoint analysis, and thermometer scaling. All three schemes produce similar conclusions as to how rewards are valued and the acceptable tradeoffs among them. Thermometer scaling outperformed the others with respect to the time it took to secure the judgments and the palatability of the task, while conjoint measurement performed least well in these respects.