Dynamic capacity adjustments with reactive customers

In this paper we develop a behavioural model in which customers come and go based on their perception of waiting time (relative to other facilities) while managers gradually adjust the capacity of the facility based on their perception of demand. We explicitly account for the difference in access to information between existing and potential customers, which implies that the perception of potential customers lags the perception of current customers. We investigate the outcome of the interaction between these simultaneous dynamic decision processes, and in particular the impact of the lags created by the perception formation process and the time to implement desired changes in capacity. These multiple delays may result in customers and service provider being out of step: customers walk away just as the service provider manages to bring extra capacity online.     

Resource-constrained materials requirements planning- MRP rc

Computerized MRP systems used in industrial practice have been criticized by researchers as well as industrial users with respect to their limited ability to generate feasible production schedules. In this paper the lot size planning stage of a typical MRP system is considered. Several modelling alternatives for multi-level lot sizing are discussed with the help of a small example. A resourceconstrained approach to lot sizing- called MRP rc- is presented that cooperates with standard production planning and control systems. In this approach the item-by-item lot size planning is substituted by the heuristic solution of a multi-level multi-item dynamic capacitated lot sizing problem with setup times for general product structures.     

Integrating MRP and finite capacity planning

Traditional production control systems based on the manufacturing resource planning concept do not sufficiently support the planner in solving capacity problems, ignore capacity constraints and assume that lead times are fixed. This leads to problems on the shop floor, that cannot be resolved in the short term. This paper focuses on solving these capacity problems by improving capacity planning at the material requirements planning MRP level through integration of MRP and finite capacity planning. This results in a planning method for simultaneous capacity and material planning. The planning method is based on a new and more accurate primary process model, giving the planning algorithm more flexibility in solving capacity problems. The algorithm is based on advanced scheduling techniques and uses aggregated information, thus combining speed and accuracy. The algorithm is designed to use the available flexibility: alternative routeings, safety stock, and replanning of production orders and requirements. This paper also discusses such related issues as robustness, memory and the role of the human planner.     

Accounting Performance and Capacity Investment Decisions: Evidence from California Hospitals

Capacity decisions involve trade‐offs between the cost of capacity and the opportunity costs of lost sales. Accounting researchers posit that accounting performance provides sufficient information about these trade‐offs and thus can be used to formulate simple rules to assist capacity decisions. Empirical research has not examined the role of accounting information in capacity investment decisions at the department level in a multiproduct firm in the presence of social costs. Empirical analyses using department‐level data from California hospitals for the period 1998–2005 show that hospitals are more likely to make capacity investments in departments with high accounting performance. However, in the presence of demand variability, the association between accounting performance and capacity investment is attenuated because of the resulting increase in noise in accounting performance measures. Thus, the weight on accounting performance as a decision tool for capital investments reduces when there is demand variability. Another factor that reduces the weight on accounting performance is capacity utilization. Higher capacity utilization can lead to turning away or rerouting of patients to other hospitals and negatively impacts reputation and quality of care, which increases the hospital's social costs. Hence, hospitals do not require high accounting performance before investing in a department with high capacity utilization. This empirical evidence of the role of accounting performance in capacity investment decisions fills a gap in the capacity investment literature and furthers our understanding of the interactions between accounting performance and the operational determinants of firms’ capacity investment behavior.     

Cognitive,social, and neural determinants of diminished decision-making and financial exploitation risk in aging and dementia: A review and new model

ABSTRACT

In this article we will briefly review how changes in brain and in cognitive and social functioning, across the spectrum from normal to pathological aging, can lead to decision-making impairments that increase abuse risk in many life domains (e.g., health care, social engagement, financial management). The review will specifically focus on emerging research identifying neural, cognitive, and social markers of declining financial decision-making capacity in older adults. We will highlight how these findings are opening avenues for early detection and new interventions to reduce exploitation risk.     

Challenges of local government capacity building initiatives: experiences of an UNDP nationally executed programme in Thailand

In 1996 the Government of Thailand, with technical and financial assistance from the UNDP, designed a package of strategies and policies to help sustain the development of the urban centres in the various regions of the country. The package, which focused on strengthening capacity at the local level came to be known as the Regional Urban Development Program (RUDP). This article is an analysis of the process of implementing this capacity building initiative. It summarizes the achievements of and constraints faced by the programme and suggests recommendations that implementing agencies may consider with a view to improve conditions at the local level.     

航空公司交叉持股对产能共享策略的影响研究

产能共享与交叉持股是航空公司常用的运作与财务策略,两种方式都能在一定条件下起到缓和竞争的作用。本文考虑两家航空公司的两种交叉持股模式,构建了包含顾客忠诚度的价格竞争模型,依据产能是否对称以及是否实施产能共享策略形成八种不同的情形,求解并分析了不同情形下的最优价格决策及对应期望利润。通过对比不同情形下的利润,本文发现,在单向持股模式下,当产能对称时,两家企业始终愿意采用产能共享策略,而当产能不对称时,如果存在产能共享,产能较小的企业将更愿意降低产品价格,导致市场竞争加剧,从而损害产能较大企业的盈利能力。因此,只有当持股比例相对较小时企业才愿意实施共享产能策略。在交叉持股模式下,当产能对称时,企业在交叉持股比例适中时才愿意实施产能共享策略。而当产能不对称时,企业始终不愿意采用产能共享策略。这也表明产能共享和交叉持股策略之间存在一定的相互替代作用,企业应根据不同市场状态协调使用两种策略。     

On service degrade at a discount: Capacity, demand pooling, and optimal discounting

In this paper we study the capacity investment decisions and operational strategies of a firm providing two-class services facing uncertain demands. The capacity decisions of the resources are made before demands are observed. Each service can be implemented by its corresponding resource. Should a mismatch between the capacity and the actual demand for the services arise, the low-class resource can be used as a substitute for the high-class service. We introduce an operational strategy called degrade-at-a-discount, where a price discount is offered to motivate customers to accept a lower class service when their original choice is out of capacity. By formulating the problem as a one-period, two-stage stochastic problem, we analyze how to set up the optimal capacity and the optimal discount. We also conduct a comprehensive numerical study to show the benefits of the degrade-at-a-discount strategy.