Optimal lot sizing under continuous price decrease

An important characteristic of high-tech industries is decreasing component prices over time. In the personal computer industry, some component prices decline at a rate of 1% per week. This paper develops an inventory model for products experiencing continuous decrease in unit price. We develop an accurate closed-form approximate solution to the model. Our results indicate that declining prices lead to substantial decrease in the optimal cycle time and much frequent ordering. This explains the heavy emphasis on just-in-time inventory management practiced by successful companies in high-tech industries. While previous models attributed the success of just-in-time policies to reduced holding cost and improved quality, under declining prices a substantial source of savings becomes lower costs of raw materials which is significant part of cost in these industries. We illustrate the results of the model with a numerical example and perform sensitivity analysis.     

On calculating the fisher information in order statistics

This article gives a simple result for the expression of the Fisher information in order statistics. This result enables us to calculate easily the Fisher information in any set of order statistics whose details have been known to be messy and complicated. We consider here its application in the optimal spacing problem where the exact Fisher information in order statistics has been approximated with the asymptotic information or the reciprocal of the variance of a suitable estimator. This work was supported by Korea Research Foundation Grant(KRF-2000-015-DP0056)     

The dilemma of recognition: Administrative categories and cultural diversity

Governments around the world combat inequality by means of group-specific redistribution. Some pursue redistribution that benefits groups, but also wish to avoid accentuating or even recognizing group distinctions. This poses a dilemma that they try to resolve by adjusting the category system used to target redistribution. There are three types of adjustment: accommodation (the multicultural approach), denial (the ideal-typical liberal solution), and replacement (a compromise). In replacement the targets of redistributive policies are constructed to avoid accentuation or recognition of inconvenient group distinctions, but still allow redistribution that benefits these groups. Replacement is increasingly in demand around the world because the disadvantages of multiculturalism are becoming apparent while denial is hard to sustain in the face of group inequality. The actual effect of replacement is little researched and less understood, however. Does it resolve the dilemma of recognition? Two examples–India and Nigeria–where replacement has been tried ever since the 1950s cast doubt on its viability.     

The Impact of Question and Respondent Characteristics on Comprehension and Mapping Difficulties

Behavior coding is one technique researchers use to detect problemsin survey questions, but it has been primarily explored as apractical tool rather than a source of insight into the theoreticalunderstanding of the cognitive processes by which respondentsanswer survey questions. The latter is the focus of the currentinvestigation. Using data from a large study in which face-to-faceinterviews were taped and extensive behavior coding was done,we tested whether sets of respondent behavior codes could beused to distinguish respondent difficulties with comprehensionof the question from difficulties associated with mapping ajudgment onto the response format provided, and whether characteristicsof the survey questions and respondents could be used to predictwhen and for whom such difficulties would occur. Sets of behaviorcodes were identified that reflected comprehension and mappingdifficulties, and these two types of difficulties were associatedwith different question and respondent characteristics. Thisevidence suggests that behavior coding shows promise as a toolfor researchers studying the cognitive processes involved inanswering survey questions.     

Goal Ambiguity and Organizational Performance in U.S. Federal Agencies

In spite of numerous observations that government organizationshave high levels of organizational goal ambiguity that exertmajor influences on their other characteristics, few researchershave measured goal ambiguity and tested these frequent assertions.In previous research, we developed measures of four dimensionsof goal ambiguity: mission comprehension ambiguity, directivegoal ambiguity, evaluative goal ambiguity, and priority goalambiguity. Confirming hypotheses developed from the literatureon public organizations, the latter three variables showed relationsto such organizational characteristics as organizational age,financial publicness (proportion of funding from governmentallocations), and regulatory status. This article reports asecond analytical step of examining the relations between thegoal ambiguity dimensions and indicators of organizational performancebased on responses to the 2000 National Partnership for ReinventingGovernment Survey of federal employees. The performance variablesincluded managerial effectiveness, customer service orientation,productivity, and work quality. Regression analyses with numerouscontrol variables found that directive, evaluative, and prioritygoal ambiguity related negatively to managerial effectiveness.All four performance indicators showed significant negativerelationships with evaluative goal ambiguity and directive goalambiguity. The results provide further evidence of the viabilityof the new measures of goal ambiguity, support theory-basedbut previously untested hypotheses, and further indicate thefeasibility and value of analyzing goal ambiguity of governmentorganizations.     

Labor relations and technological change at Canadian Pacific Railway

There was a time in this fair land when the railroad did not run When the wild majestic mountains stood alone against the sun Long before the white man and long before the wheel When the green dark forest was too silent to be real For they looked into the future and what did they see They saw an iron road running from the sea to the sea Bringing the goods to a young growing land All up through the seaports and into their hands From “Canadian Railroad Trilogy” by Gordon Lightfoot The authors thank CPR managers and union officials representing CPR employees for their cooperation and patience in explaining the intricacies of the railroad industry. Special appreciation is extended to Jason Copping, Labour Relations Manager, for his facilitating our initial access to the company.     

The Texaco racial discrimination case and shareholder wealth

We analyze the wealth ejfects of the Texaco racial discrimination lawsuit both on the shareholders of Texaco and its major U.S. competitors. Employing a comprehensive data set which included every case docket entry and every Wall Street Journal article on the case as an experimental stimulus, our findings suggest that the overall cost of the case to Texaco shareholders exceeded $500 million, that Texaco's tribulations had little, if any, impact on the share prices of its major competitors, and that Wall Street Journal coverage of the case was highly correlated with significant changes in Texaco stock prices. This last finding provides significant support for Hite 's suppostion that newspaper editors “key ” on ex post stock price changes in selecting the events to be covered in the next day's edition. The authors are grateful to Kee Chung for helpful comments on earlier drafts and also acknowlege the help-ful assistance of the staff of the law library at the Cecil C. Humphreys School of Law at The University of Memphis.