Economic Evaluation of Scale Dependent Technology Investments

We study the effect of financial risk on the economic evaluation of a project with capacity decisions. Capacity decisions have an important effect on the project̂s value through the up‐front investment, the associated operating cost, and constraints on output. However, increased scale also affects the financial risk of the project through its effect on the operating leverage of the investment. Although it has long been recognized in the finance literature that operating leverage affects project risk, this result has not been incorporated in the operations management literature when evaluating projects. We study the decision problem of a firm that must choose project scale. Future cash flow uncertainty is introduced by uncertain future market prices. The firm's capacity decision affects the firm's potential sales, its expected price for output, and its costs. We study the firm's profit maximizing scale decision using the CAPM model for risk adjustment. Our results include that project risk, as measured by the required rate of return, is related to the inverse of the expected profit per unit sold. We also show that project risk is related to the scale choice. In contrast, in traditional discounted cash flow analysis (DCF), a fixed prescribed rate is used to evaluate the project and choose its scale. When a fixed rate is used with DCF, a manager will ignore the effect of scale on risk and choose suboptimal capacity that reduces project value. S/he will also misestimate project value. Use of DCF for choosing scale is studied for two special cases. It is shown that if the manager is directed to use a prescribed discount rate that induces the optimal scale decision, then the manager will greatly undervalue the project. In contrast, if the discount rate is set to the risk of the optimally‐scaled project, the manager will undersize the project by a small amount, and slightly undervalue the project with the economic impact of the error being small. These results underline the importance of understanding the source of financial risk in projects where risk is endogenous to the project design.     

基于产业集群的企业重点投资地区决策的仿真

用多Agent仿真技术,研究了基于产业集群的台资IT企业在大陆重点投资地区的决策问题。提出了针对这一问题的、将集群竞争力评价的GEM模型、多Agent仿真技术及演化博弈相结合的思路与方法。仿真模型对集群的研究方法以及多Agent的应用领域有拓展意义,而仿真发现与结论可为政府制定有关政策提供参考。     

The place of informality and illegality in planning education in Nigeria

This paper discusses the extent to which topical planning issues of informality and illegality are incorporated into the educational curricula in Nigerian planning schools. Given the scale and enormity of informal and illegal settlements in Nigeria and other African cities, these issues should be emphasized in the education and training of planning professionals. Yet, few curricula in Nigerian planning schools, including the Nigerian Town Planners Registration Council’s professional curriculum, incorporate informal urban issues. The paper recommends an educational interventionist approach based on recognition of the potential of indigenous knowledge as a means of producing critical and reflective planning graduates who possess the competencies to deal with contemporary settlement challenges. It presents the institutional landscape for planning education and the processes of planning curricular reform and accreditation with a view to revitalizing planning education in Nigeria.     

Planning for retail change: a survey of municipal governments in Washington State

Effectively managing retail is essential for municipalities in terms of meeting land use planning goals, developing revenue sources through taxation, furthering economic growth and providing access to goods and services for residents. In 2013, a survey was conducted to examine the retail planning practices of all the 110 small- and medium-sized municipalities in Washington State. The online survey addressed data collection and analysis, land use, retail recruitment, inter-jurisdictional cooperation and evaluation. A large majority of respondents had retail planning goals in their comprehensive plans, yet only 30% dedicated staff for implementation. Jurisdictions would benefit from regional retail planning (especially in light of changes underway from e-commerce), yet the state tax structure places municipalities in competition.     

Planners’ Perceptions of Why Canadian Communities Have Too Many Plans

A survey of Canadian planners explored perceptions about factors contributing to the growing number of plans communities have adopted recently. The results suggest that practitioners see themselves as responding to current community concerns, as well as to requirements imposed by higher levels of government. Neoliberal practices that force compliance with accountability frameworks to enable transfer payments increase demands for new plans. Professional practices within planning have encouraged specialization—in fields such as urban design—that often leads to plan-making activities. With many plans to coordinate, and limited staff resources and time available, practitioners face increasing implementation challenges.     

Taking Stock of Neighbourhood Planning in England 2011–2016

Neighbourhood planning (NP) as enabled by the 2011 Localism Act in England has precipitated a considerable literature discussing its potential, limitations and likely shortcomings referenced against government rhetoric and the reporting of initial experiences of the process. This paper provides an overview of the current literature on neighbourhood planning and sets out how it has been received and practised across England drawing on empirical evidence. The extent of take-up and the experience of those involved in the first five years of neighbourhood planning is used to consider how community-led planning may be designed and used following operational principles of inclusivity, capacity-building and adding value.     

Understanding the theory behind the Last Planner System using the Language-Action Perspective: two case studies

Since the Last Planner System® (LPS) was devised in the early 90s, a number of studies have pointed out the need to understand the underlying theory in which it is based on. The Language-Action Perspective (LAP) has been suggested as a suitable approach to understand the management of commitments in the LPS. This paper aims to assess the contribution of LAP to understand construction planning and control systems based on LPS. Two case studies were carried out in different construction companies, both highly experienced on the use of LPS. The results reveal the role of LAP for creating explicit representations of commitment flows that can be used to explain the sources of complexity and failures in planning systems, as well as for describing the profile of planning and control meetings.     

Pollutant Ground Concentrations of Nonneutrally Buoyant Particles

A methodology is suggested for the estimation of the mass density and the cumulative ground deposition of a nonvolatile, nonneutrally buoyant, air pollutant (liquid or solid) released from a polluted column (following an explosion caused during routine operation in, e.g., the chemical industry or due to any kind of hostile act) and deposited on the ground via gravitational settling. In many cases, the deposited mass due to gravitational settling constitutes a significant fraction of the original inventory released from the source. Implementation of the methodology in preliminary risk assessments can serve as an efficient tool for emergency planning for both immediate and long‐term measures such as evacuation and decontamination. The methodology considers, inter alia, an estimation of the critical particle diameter, particle size, and mass distributions along the polluted column. This methodology was developed to apply in rural regions since proper application of relevant meteorological input data can be accomplished mainly for such areas.     

Tactical production and distribution planning with dependency issues on the production process

Tactical production-distribution planning models have attracted a great deal of attention in the past decades. In these models, production and distribution decisions are considered simultaneously such that the combined plans are more advantageous than the plans resolved in a hierarchical planning process. We consider a two-stage production process, where in the first stage raw materials are transformed into continuous resources that feed the discrete production of end products in the second stage. Moreover, the setup times and costs of resources depend on the sequence in which they are processed in the first stage. The minimum scheduling unit is the product family which consists of products sharing common resources and manufacturing processes. Based on different mathematical modelling approaches to the production in the first stage, we develop a sequence-oriented formulation and a product-oriented formulation, and propose decomposition-based heuristics to solve this problem efficiently. By considering these dependencies arising in practical production processes, our model can be applied to various industrial cases, such as the beverage industry or the steel industry. Computation tests on instances from an industrial application are provided at the end of the paper.