optimal lot size model for deteriorating items with demand rate dependent on displayed stock level dsl and partial backordering in this paper we consider the problem of determining the lot size of a single deteriorating item with the demand rate dependent on displayed stock level selling price of an item and frequency of advertisement in the popular electronic and print media also through the sales representatives shortages if any are allowed and partially backlogged with a variable rate which depends on the duration of waiting time upto the arrival of next lot here the transportation cost for replenishing the goods is considered explicitly and the storage capacity of the showroom shop is assumed to be limited finite according to the relative size of the stock level dependency demand parameters and the storage capacity of the showroom shop different scenarios with sub scenarios have been mentioned and solved with the help of grg generalised reduced gradient method and the computational procedure the convexity analysis is done by showing the average profit function in each case as pseudo concave to illustrate the results and its significant features a numerical example is given finally to study the effect of changes of demand parameters deterioration backlogging parameters and mark up rate on the maximum initial stock level shortage level frequency of advertisement per cycle along with the maximum average profit are presented numerically

a deterministic inventory model for deteriorating items with stock dependent demand rate abstract a deterministic inventory model is developed by assuming that the demand rate is stock dependent and the items deteriorate at a constant rate the expression for the average net profit over one production run is derived and its optimization with respect to the decision variables q initial stock and t duration of a production cycle is carried out this leads to two highly nonlinear equations which are solved by using a subroutine neqnf in imsl math library in cyber 180 480a computer system the optimal solution so derived is compared with that for the no deterioration 0 case sensitivity of the optimal solution to changes in parameter values is examined several aspects of the functional form for the demand rate are considered in a separate section finally the salient features of the problem and its solution are discussed in brief

employer stock and 401 k plans the sharp decline in the stock prices of several firms at which employees held a large fraction of their 401 k plan assets in company stock including enron global crossing lucent and polaroid has sparked a public policy debate about investment options in 401 k plans at many large firms particularly those with retirement saving plans that combine elements of an employee stock ownership plan esop with a traditional 401 k a substantial fraction of defined contribution retirement plan assets are held in company stock such undiversified holdings are a source of concern because they raise the volatility of the retirement wealth for employees and expose some workers to the prospect of very small retirement values holding an undiversified position in employer stock may be particularly costly because of the potential correlation between company stock returns and the value of the worker s human capital which may depend on the company s prospects this paper reviews the extent of undiversified company stock investments in 401 k plans evaluates the cost of such investments from an employee s perspective and discusses a range of policy actions that could address the excessive concentration of retirement plan assets

an order level lot size inventory model with inventory level dependent demand and deterioration abstract many inventory models have been developed for various deteriorating items with constant demand rate it is a common experience that for perishable consumer goods the age of inventory has a negative impact on the demand due to the loss of consumer confidence on such product consumers tend to keep off perishable items which have reached closer to their expiry dates this paper describes an inventory model in which the demand is considered as a composite function consisting of a constant component and a variable component which is proportional to the inventory level in the periods when there is a positive inventory buildup the rate of production is considered finite and the decay rate as exponential the total cost function is composed of four cost components of all phases of the cycle backorder replenishment inventory buildup inventory depletion and shortage this cost function is later reduced to a two variable function using boundary relations to determine iteratively the set of values of the variables that resulted in minimum cost per cycle the optimum lot size and order level were then obtained with relations established previously results are demonstrated for an instance of the model

an eoq model with partial backordering and advance payments for an evaporating item abstract in the classic economic order quantity model the purchasing cost of an order is paid at the time of its receipt in some cases retailers ask purchasers to pay all or a fraction of the purchasing cost in advance and may allow them to divide the prepayment into several equal sized parts in this paper an economic order quantity model for an evaporating item with partial backordering and partial consecutive prepayments is developed with a real case study of a gasoline station real numerical examples illustrate the proposed model and the solution method

an inventory model for deteriorating items with stock dependent demand rate abstract this paper discusses an inventory model with an inventory level dependent demand rate followed by a constant demand rate for items deteriorating at a constant rate where the terminal condition of zero inventory at the end of the scheduling period has been relaxed sensitivity of the decision variables to changes in the parameter values is examined and the effects of these changes on the optimal policy are discussed in brief

competition and cooperation in corporate governance the effects of labor institutions on blockholder effectiveness in 23 european countries we provide an analysis of the costs and benefits of blockholding in europe where it is a dominant but certainly not universal corporate governance strategy for shareholders of publicly listed firms we find that the effectiveness of blockholding is conditioned by the specific labor institutions that distinguish european countries from the rest of the world and that these institutional effects involve both competition and cooperation between blockholders and collective labor interests we also find that relational blockholders are better able to cope with or benefit from these institutional effects than arm s length blockholders empirically we use advanced meta analytic methods on a total sample of 748 569 firm year observations derived from 162 studies covering 23 european countries

integrating deterioration and lifetime constraints in production and supply chain planning a survey abstract items with short lifetimes that are subject to deterioration are important in the business world research has a long tradition in integrating deterioration and value loss effects into mathematical models for inventory planning and control where such effects are understood as a general loss or shrinkage of inventory however there has been little work in the modeling of lifetime restrictions of items to prevent wastage and disposals especially in a dynamic planning context globalization and other trends extend the consideration of single companies to whole supply chains implying increased coordination and information needs this is important as planning decisions impact lead times and thus the quality of items in the whole supply chain products that exceed their useful lifetime can impose high costs due to inventory loss or the need to rework them this implies increased utilization of scarce resources e g machine time metals and or energy thereby increasing co 2 levels we survey the state of the art regarding depreciation effects and the modeling of lifetime constraints as well as a classification of models following business planning functions of the value chain a critical evaluation of approaches and their limitations is provided highlighting directions for future research

review of inventory systems with deterioration since 2001 abstract this paper presents an up to date review of the advances made in the field of inventory control of perishable items deteriorating inventory the last extensive review on this topic dates back to 2001 goyal s k and giri b c recent trends in modeling of deteriorating inventory european journal of operational research 134 1 16 since then over two hundred articles on this subject have been published in the major journals on inventory control indicating the need for a new review we use the classification of goyal and giri based on shelf life characteristics and demand characteristics contributions are highlighted by discussing main system characteristics including price discounts backordering or lost sales single or multiple items one or two warehouses single or multi echelon average cost or discounted cash flow and payment delay

the role of esops in takeover contests this article examines both the shareholder wealth effects of employee stock ownership plans esops announced by firms subject to takeover pressure and the takeover incidence of targets with and without esops although we do not find that defensive esops significantly reduce shareholder wealth on average we identify two factors the change in managerial and employee ownership due to the esop and the simultaneous announcement of other defensive tactics that are associated with negative stock price reactions we find that esops are strong deterrents to takeover esop targets that are acquired earn higher returns than targets without esops but the difference is not statistically significant copyright 1994 by american finance association

debt and the marginal tax rate abstract do taxes affect corporate debt policy this paper tests whether the incremental use of debt is positively related to simulated firm specific marginal tax rates that account for net operating losses investment tax credits and the alternative minimum tax the simulated marginal tax rates exhibit substantial variation due to the dynamics of the tax code tax regime shifts business cycle effects and the progressive nature of the statutory tax schedule using annual data from more than 10 000 firms for the years 1980 1992 i provide evidence which indicates that high tax rate firms issue more debt than their low tax rate counterparts

institutional and legal context in natural experiments the case of state antitakeover laws we argue and demonstrate empirically that a firm s institutional and legal context has first order effects in tests that use state antitakeover laws for identification a priori the size and direction of a law s effect on a firm s takeover protection depends on i other state antitakeover laws ii preexisting firm level takeover defenses and iii the legal regime as reflected by important court decisions in addition iv state antitakeover laws are not exogenous for many easily identifiable firms we show that the inferences from nine prior studies related to nine different outcome variables change substantially when we include controls for these considerations

own company stock in defined contribution pension plans a takeover defense abstract if managers induce employees to hold company stock in defined contribution pension plans as a form of takeover defense then changes in state laws that enhance managerial protection should lead to a reduction in employer stock in 401 k plans delaware s mid 1990s validation of the poison pill in conjunction with a staggered board was followed by a significant decline in employee ownership within defined contribution plans for firms incorporated in delaware evidence using governance data suggests that this is due to responses of firms with staggered boards binary choice models confirm that employee ownership in defined contribution plans lowers takeover probabilities

the incidence of mandated maternity benefits i consider the labor market effects of mandates which raise the costs of employing a demographically identifiable group the efficiency of these policies will be largely dependent on the extent to which their costs are shifted to group specific wages i study several state and federal mandates which stipulated that childbirth be covered comprehensively in health insurance plans raising the relative cost of insuring women of childbearing age i find substantial shifting of the costs of these mandates to the wages of the targeted group correspondingly i find little effect on total labor input for that group jel 118 j32 h51 in an era of tight fiscal budget constraints mandating employer provision of workplace benefits to employees is an attractive means for a government to finance its policy agenda consequently in recent years there has been a growth of interest in mandated benefits as a tool of social policy for example the centerpiece of president bill clinton s health care proposal is mandated employer provision of health insurance and more than 20 states have man

food chain evaluator a tool for analyzing the impacts and designing scenarios for the institutional catering in lombardy italy abstract a method was developed and applied to evaluate the impacts of food production for improving institutional catering in lombardy northern italy and to outline possible improved scenarios the research takes into account different crop managements i e organic agriculture and adoption of local products and different dietary choices able to guaranty the same nutritional contents the non renewable energy consumed for the production of foods managed by the institutional catering system is proposed as indicator to compare different policies together with other indicators as productive land and productive cost a case of study is presented to test the overall method the outcomes of the work could support a reorientation of both the production and consumption systems in general the shift towards local and organic products implies a reduction of the impacts evaluated further the important impacts of beef consumption in particular in terms of energy and land consumption are demonstrated the work permits an interesting insight about institutional catering taking into account not only the single food chains but also the composition of the meals by different food products an improvement of the tool is in progress in order to properly evaluate the stages of cooking refrigeration packaging energy consumption in catering areas and food waste management a sensitivity analysis will be carried out for assessing the reliability of the results finally other complex environmental indicators such as carbon footprint or ecological footprint could represent other future interesting developments of the tool

institutional and individual investors saving for old age this paper brings together the academic literature on individual and institutional investors in order to understand the nature of difficulties faced by them and set the background for the special issue this introductory article and the papers in the special issue contribute to the debate on how to support individuals in their savings commitments and investment decision making and whether and how institutional investors have fulfilled their role in supporting the development of the funded pension industry there are three main conclusions i individual investors are not ready for the role that has been assigned to them in the pension industry ii institutional investors are a long way short of establishing healthy relational contracts and trustworthy relationships with their clients and iii more effective regulation may be needed

the supply of corporate directors and board independence empirical evidence on the relations between board independence and board decisions and firm performance is generally confounded by serious endogeneity issues we circumvent these endogeneity problems by demonstrating the strong impact of the local director labor market on board composition specifically we show that proximity to larger pools of local director talent leads to more independent boards for all but the largest quartile of s p 1500 using local director pools as an instrument for board independence we document that board independence has a positive effect on firm value operating performance fraction of ceo incentive based pay and ceo turnover the author 2013 published by oxford university press on behalf of the society for financial studies all rights reserved for permissions please e mail journals permissions oup com oxford university press

eoq models for perishable items under stock dependent selling rate this paper presents inventory models for perishable items with stock dependent selling rate the selling rate is assumed to be a function of current inventory level and rate of deterioration is taken to be constant under instantaneous replenishment with zero lead time the model incorporates aspects such as complete partial and no backlogging eoq is determined for maximizing the total profit in each of the situations the models developed are illustrated through numerical examples and sensitivity analysis is reported

optimal employee ownership contracts under ambiguity aversion the aim of this paper is to compute and describe the conditions of an optimal employee ownership contract between an employer and an ambiguity averse employee we then introduce ambiguity aversion in the baseline model of aubert et al 2014 using the multiple prior preferences of gilboa and schmeidler 1989 and its extension proposed by maccheroni et al 2006 this model offers solutions that reconcile labor and financial economics and behavioral economics research findings on employee ownership the paper focuses on the most common situation where employee ownership has a positive impact on corporate performance but can also be used as an entrenchment mechanism we determine the optimal company stock contribution which corresponds to a perfect subgame nash equilibrium in the ambiguity framework using the framework of gilboa and schmeidler s 1989 we show that the optimal ownership contract is respectively increasing with respect to the lower bound of the return expectation in the case of a high level of effort and decreasing with respect to the upper bound of the return expectation in the case of a low level of effort in the framework of maccheroni et al 2006 we prove that if aversion to ambiguity is sufficiently high then we find the same behavior as in the case of no ambiguity

pensions and retirement evidence from union army veterans i investigate the factors that fostered rising retirement rates prior to social security and most private sector pensions by estimating the income effect of the first major pension program in the united sates that covering union army veterans the elasticity of nonparticipation with respect to union army pension income was 0 73 the findings suggest that secularly rising income explains a substantial part of increased retirement rates comparisons with elasticities of nonparticipation with respect to social security income suggest that the elasticity of labor force nonparticipation may have decreased with time perhaps because of the increasing attractiveness of leisure

loyalty based portfolio choice i evaluate the effect of loyalty on individuals portfolio choice using a unique dataset of retirement contributions i exploit the statutory difference that in 401 k plans stand alone employees can invest directly in their division while conglomerate employees must invest in the entire firm including all unrelated divisions consistent with loyalty employees of stand alone firms invest 10 percentage points 75 more in company stock than conglomerate employees support is also found using variation in loyalty between different groups of employees across and within firms the cost to employees of loyalty is large amounting to nearly a 20 loss in retirement income

enjoying the quiet life corporate governance and managerial preferences much of our understanding of corporations builds on the idea that managers when they are not closely monitored will pursue goals that are not in shareholders interests but what goals would managers pursue this paper uses variation in corporate governance generated by state adoption of antitakeover laws to empirically map out managerial preferences we use plant level data and exploit a unique feature of corporate law that allows us to deal with possible biases associated with the timing of the laws we find that when managers are insulated from takeovers worker wages especially those of white collar workers rise the destruction of old plants falls but the creation of new plants also falls finally overall productivity and profitability decline in response to these laws our results suggest that active empire building may not be the norm and that managers may instead prefer to enjoy the quiet life

optimal pricing and lot sizing under conditions of perishability and partial backordering we formulate a generalized model of dynamic pricing and lot sizing by a reseller who sells a perishable good we assume that when it is economic to backlog demand the reseller can plan for periods of shortage during which demand can be partially backordered when the good is highly perishable the reseller may need to backlog demand in order to market the good at a reasonable price we present a simple solution procedure for solving the optimization problem the procedure entails solving first a single nonlinear equation and then if required two nonlinear equations

a survey of deterministic models for the eoq and epq with partial backordering models for the basic deterministic eoq or epq problem with partial backordering or backlogging make all the assumptions of the classic eoq or epq model with full backordering except that only a fraction of the demand during the stockout period is backordered in this survey we review deterministic models that have been developed over the past 40 years that address the basic models and extensions that add other considerations such as pricing perishable or deteriorating inventory time varying or stock dependent demand quantity discounts or multiple warehouses

balancing competing policy demands the case of sustainable public sector food procurement a focus on market based green growth strategies to pursue sustainability goals neglects the pursuit of understanding how human health is interwoven with the health of eco systems to deliver sustainability goals the article argues that clarifying the difference between green and sustainable public sector food procurement with political continuity that supports and enables policymakers and practitioners to take an incremental approach to change makes an important contribution to delivering more sustainable food systems and better public health nutrition five european case studies demonstrate the reality of devising and implementing innovative approaches to sustainable public sector food procurement and the effects of cultural and political framings how legislation is enacted at the national level and interpreted at the local level is a key driver for sustainable procurement transition is dependent on political will and leadership and an infrastructure that can balance the economic environmental and social drivers to effect change the development of systems and indicators to measure change reforms to eu directives on procurement and the relationship between green growth strategies and sustainable diets are also discussed the findings show the need to explore how consistent definitions for green public procurement and sustainable public procurement can be refined and standardized in order to support governments at all levels in reviewing and analyzing their current food procurement strategies and practices to improve sustainability

the law and economics of company stock in 401 k plans abstract some 11 million participants in 401 k plans invest more than 20 percent of their retirement savings in their employer s stock yet investing in the stock of one s employer is risky single securities are riskier than diversified portfolios and an employee s human capital typically is positively correlated with the company s performance in the worst case scenario workers can lose their jobs and much of their retirement wealth simultaneously for workers who expect to work for a company for many years a dollar of company stock can be valued at less than 50 cents after accounting for risk however employees still invest voluntarily in their employer s stock and many employers insist on making matching contributions in stock we provide evidence that employees underestimate the risk of owning company stock while employers overestimate the benefits associated with employee stock ownership we then analyze the likely effects of current and proposed regulations in this context