A PROFIT-MAXIMIZATION MODEL FOR A RETAILER'S STOCKING DECISIONS ON PRODUCTS SUBJECT TO SUDDEN OBSOLESCENCE

A product has been formally denned as being subject to sudden obsolescence if its lifetime is negative exponentially distributed. Using an approximate model, Masters suggested that the traditional method of incorporating obsolescence cost as a component of inventory holding costs in the economic order quantity (EOQ) model was appropriate-for products subject to sudden obsolescence, provided that the obsolescence cost component was computed properly. Unfortunately, current practice of the EOQ model seriously underestimates the costs of sudden obsolescence. An exact model demonstrating that Masters' model also underestimated true lifetime costs and overestimated the optimal order quantity has been presented. Neither of these models addressed quantity discounts. Furthermore, with their cost-minimization focus, these models fail to identify situations when minimized costs exceed expected revenues. We extend Joglekar and Lee's model to focus on maximizing profits, rather than minimizing costs. This model answers such questions as whether to stock the product at all, whether to accept a quantity discount offer, and what order quantity to use. Numerical examples and sensitivity analyses suggest that Masters' model provides a significant improvement over the traditional model in moving toward true optimality. However, they also illustrate situations where both the traditional and the Masters' model accept a quantity discount that deserves to be rejected and stock a product that should not be stocked. In such situations, it seems important that a retailer uses the profit-maximization model presented here.     

How did the financial crisis affect the transnationality of the global financial elite? One step forward and one step back

Over the last few decades, transnational elite formation progressed hand in hand with a deterioration in national business elites. Most studies regard this process as progressive and linear. However, we argue that transnational elite formation is subject to a variety of opposing forces, and the assumed progression is not a given fact. As an intriguing case, we analyse the financial business elite with a focus on the financial crisis of 2008. This international event had substantial ramifications, including a possible external shock to transnational elite formation. To study the consequences of the crisis, we collected the board composition data of the 48 largest transnational financial companies for the period 2006–11. Changes in board composition show opposing effects. For example, transnationality increased during the crisis, but reversals appeared when national governments intervened.     

The social field of the European corporate elite: a network analysis of interlocking directorates among Europe's largest corporate boards

In this article I investigate the emerging patterns of the European corporate elite network as an example of a European social field, as described by Fligstein. The findings confirm that interlocking directorates form a European corporate network. However, the intercorporate network rests on a very small group of European corporate elite members: it remains the playground of a select few pan‐European ‘big linkers’. Although financial institutions and bankers appear in the upper echelons of the network, they do not occupy crucial positions. Rather, (former) CEOs of Europe's largest big non‐financial businesses knit together the network of interlocking directorates. The network rests on a coalescence of finance and industry, rather than on the dominance of the one over the other. Although the project of European unification has been quite successful in organizing the formal institutional structures, it has not yet led to reproduction of a European business community reminiscent of the national communities.     

Decision-making practices in commercial enterprises: A cybernetic intervention into a business model

Abstract

This article presents a decision-making framework and a technology that senior managers can use to steer the enterprise within a volatile and competitive commercial environment. The main aim of introducing such a technology would be to maximize the enterprise's value vector by ensuring that business objectives are consistently unfolded throughout the enterprise and used by all managers to make decisions that are consistent with the purpose and objective of the organization. The article illustrates how a cybernetic intervention into the business model of a large organization can be used to achieve this.     

A Single Garbage Can Model and the Degree of Anarchy in Japanese Firms

This paper refreshes an empirical examination ofthe garbage can model, particularly in a sample drawnfrom Japanese firms. The garbage can model oforganizational decision making was originally developed by Cohen, March, and Olsen (1972) to describeorganized anarchy. This paper incorporates twomethodologies in an attempt to both validate and extendthe garbage can model: Simulation is first used togenerate a research hypothesis, then several surveys areconducted to test that hypothesis and to empiricallydevelop an ex-post model of decision ambiguity, flight,and anarchy. The data support our hypothesis and we find out new conditions of ambiguity:(i) fluid participation, (ii) divorce of solution fromdiscussion, and (iii) job performance rather thansubjective assessments, which are clearly related to the simulation assumption of our single garbagecan model. By using our new conditions of ambiguity, wedevelop a measure of degree of anarchy, and theregression analysis indicates a linear relationship between the flight ratio and the degree ofanarchy.     

Transnational social work: using a wraparound model

In this article, we explore the wraparound approach of service delivery as a model for transnational social work. The wraparound model, used primarily within community‐based children's mental health services and child protection initiatives, has been effective when planning services for clients and their families with complicated needs, whose care has to be provided within a multiple provider context. Most social work is delivered nationally or internationally rather than trans‐nationally. In the article we outline how the model could be structured to meet the particular needs of transmigrants, including the involvement of NGOs and INGOs, and identify key obstacles and limitations.     

When theory meets methods: the naissance of computer assisted corporate interlock research

In this article, we study the emergence of computer aided network analysis as an example of ‘Mertonian’ multiple discovery. Computer assisted quantitative network analysis emerged around 1970 and small groups of researchers in different universities, who were independent of each other and looking for the right concepts and computer programs to implement graph theory in social analysis, first applied it to corporate interlock networks. We show how mathematical graph theory provided a toolbox for systematic network analysis and that simultaneously in the Netherlands and the United States this toolbox found an application in the study of corporate power. A historical narrative covers the three main centres in which large‐scale corporate network analysis emerged – Amsterdam, California and Stony Brook. For each centre, we provide a sketch of the people involved, the tools they used, and the motivations that brought them to this topic. Our analysis makes clear that one cannot understand the emergence of computer aided network analysis without considering the personal and often political motivations of those who engaged in the first board interlock studies. Insurgent students of political science and sociology pushed for a research agenda on corporate power and found support from scholars who were keen to develop innovative network analysis methods. Hence, corporate network analysis became a legitimate field of research.     

EXPLORING LINKAGES BETWEEN MANUFACTURING STRATEGY,BUSINESS STRATEGY,AND ORGANIZATIONAL STRATEGY

In recent years there has been an increased emphasis on the development of manufacturing and business strategies. In spite of that high level of emphasis, limited empirical research has been published on the linkage between manufacturing strategy, business strategy, and organizational performance. Our study examines that linkage. Our main contribution lies in (i) building constructs for some important elements of manufacturing strategy and business strategy and (ii) testing the impact of linkage between manufacturing strategy and business strategy on organizational performance. The study is based on 175 responses from senior executives in manufacturing organizations.     

BUSINESS STRATEGY,MANUFACTURING FLEXIBILITY,AND ORGANIZATIONAL PERFORMANCE RELATIONSHIPS: A PATH ANALYSIS APPROACH

It has been argued in the literature that business strategy and manufacturing flexibility independently affect the performance of an organization. However, no empirical examination of the interrelationship among these three constructs has been performed. In this paper, based on a field study of 269 firms in the manufacturing industry, the identified constructs have been used to test a theoretical model using path analysis techniques. Our results indicate that business strategy contributes both directly and indirectly to organizational performance. The findings provide evidence of direct effects of (i) business strategy on manufacturing flexibility and (ii) manufacturing flexibility on organizational performance.     

Exploring the joint dynamics of intercity internet and corporate networks: a stochastic actor‐based modelling approach

In this article, I show one possible solution to synthesis dynamics in multiple intercity networks. I adopt a stochastic actor‐based modelling approach to explore the co‐evolution of an intercity corporate network of 57 globalized advanced producer service firms across 93 cities, and another intercity internet network between these 93 cities, for the period 2004–2010. Stochastic actor‐based models (SABMs) help to connect interactions among cities and firms on the local scale with empirically observed networks on the global scale. My analysis accounts for the co‐evolution/interdependence among multiple world city networks (WCNs) and associated network changes in individual WCNs with exogenous city‐related covariates and endogenous local network structures.