Optimal Purchase and Transportation Cost Lot Sizing for a Single Item

A review of the literature indicates that the traditional approach for evaluating quantity discount offerings for purchased items has not adequately considered the effect that transportation costs may have on the optimal order quantity; despite the general fact that purchased materials must bear transportation charges. The transportation cost structure for less-than-truckload (LTL) shipments reflects sizable reductions in freight rates when the shipment size exceeds one of the nominal rate breakpoints. However, the shipper must also be aware of the opportunity to reduce total freight costs by artificially inflating the actual shipping weight to the next rate breakpoint, in order that a lower marginal tariff is achieved for the entire shipment. Such over-declared shipments result in an effective freight rate schedule that is characterized by constant fixed charge segments in addition to the nominal marginal rates. Over-declared shipments are economical when the shipment volume is less than the rate breakpoint, but greater than a cost indifference point between the two adjacent marginal rates. This paper presents a simple analytical procedure for finding the order quantity that minimizes total purchase costs which reflect both transportation economies and quantity discounts. After first solving for the series of indifference points that apply to a particular freight rate schedule, a total purchase cost expression is presented that properly accounts for the actual transportation cost structure. The optimal purchase order quantity will be one of the four following possibilities: (1) the valid economic order quantity (EOQ), QC; (2) a purchase price breakpoint in excess of QC; (3) a transportation rate breakpoint in excess of QC; and (4) a modified EOQ which provides an over-declared shipment in excess of QC. Finally, an algorithm which systematically explores these four possibilities is presented and illustrated with a numerical example.     

The Color of Neoliberalism: The “Modern Southern Businessman” and Postwar Alabama’s Challenge to Racial Desegregation1

Prior research on the origins and diffusion of the neoliberal project have emphasized the role of elite economists, yet no explanations have been provided as to why neoliberal reforms were attractive to the broader U.S. population. To fill this gap in the literature, this article focuses on the voluntary sector struggles against desegregation and corporate taxation in postwar Alabama. I examine the emergence of a language of privatization that degraded all things public as “black” and inferior and all things private as “white” and superior, which provided the pretext to attract national white support for the neoliberal turn. Empirically, the article focuses on the construction of the modern southern businessman that emerged from struggles to economically modernize the South, and the construction of a publicly financed private school system that emerged from the struggles to fight school desegregation. These two struggles fused under the George Wallace political umbrella, whose regional and national political career diffused the racial language from its origins in 1950s Alabama to the national level in the 1960s and early 1970s.     

A Graphical Exposition of the Economic Theory of Regulation

This article provides a novel graphical exposition of the economic theory of regulation. In particular, we show—within a single graphical construct—a number of features that emerge from the theory. Through a variety of applications we are able to provide an improved understanding of many questions that have vexed economists, including the markets likely to be chosen for regulation, the propensity of regulatory benefits to be spread across interest groups, the symbiotic nature of regulation and cross-subsidization, and the economics of deregulation. We also are able to depict graphically the relationship between the economic theory of regulation and the traditional normative model of regulation, which assumes that regulators maximize social welfare. (JEL D72 , L51 )     

Sexual identity: Conflict and confusion in a male adolescent

This paper presents a conceptual formulation, derived from developmental object relations theory and ego psychology, of the passage in male adolescence that culminates with the achievement of a masculine heterosexual identity. Themes of psychosexuality, male gender attributes, masculinity and object preference, and sexual orientation are discussed with reference to the adolescent stage. Finally, the critical tasks, core conflicts, and internalizations of prior developmental stages, as well as the integration that is required of adolescence proper relative to a sexual identity as heterosexual and masculine, are highlighted through an extensive case illustration of an adolescent male with sexual identity confusion.a clinical social worker in private practive in Palatine, Illinois. The author gratefully acknowledges that the writing of this paper was supported by a research leave granted him by Loyola University Chicago.