comments on the eoq model for deteriorating items with conditional trade credit linked to order quantity in the supply chain management abstract ouyang et al 2009 consider an economic order quantity eoq model for deteriorating items with a partially permissible delay in payments linked to order quantity basically their inventory model is practical but there are some defects from the logical viewpoints of mathematics in this paper the functional behaviors of the annual total relevant costs are explored by rigorous methods of mathematics a complete solution procedure is also developed to make up for the shortcomings of ouyang et al 2009 in numerical examples it is proved that the new solution procedure could avoid making wrong decisions and causing cost penalties

the optimal ordering policy in a dcf analysis for deteriorating items when trade credit depends on the order quantity abstract in this paper an inventory system for deteriorating items under the conditions of using the discounted cash flows dcf approach to the permissible to delay payment will be considered as a matter of fact the supplier usually is willing to provide the retailer a permissible delay of payments if the retailer orders a large quantity as a result we consider that the delay in payments depends on the quantity ordered that is when the order quantity is less than that at which the delay in payments is permitted the payment for the item must be made immediately otherwise the fixed trade credit period is permitted this paper incorporates all concepts of a dcf approach and the trade credit linked to ordering quantity and develops a new inventory model for deteriorating items to generalize jaggi and aggarwal int j prod econ 34 1994 151

optimal production lot with imperfect production process under permissible delay in payments and complete backlogging abstract the traditional economic production quantity epq model assumes that the production products are all perfect it is not always true in the real production system due to imperfect production process or other factors imperfect quality items may be produced furthermore it is well known that the total production inventory costs can be reduced by reworking the imperfect quality items produced with a relatively smaller additional reworking and holding costs in addition the permissible delay in payments offered by the supplier is widely adopted in the practical business market in this study we explore the effects of the reworking imperfect quality items and trade credit on the epq model with imperfect production processes and complete backlogging a mathematical model which includes the reworking and shortage costs interest earned and interest charged is presented besides an arithmetic geometric mean inequality approach is employed and an algorithm is developed to find the optimal production policy furthermore some numerical examples and sensitivity analysis are provided to demonstrate the proposed model

bond underwriting by banks and conflicts of interest evidence from japan during the pre war period abstract article 65 of the securities and exchange law of japan which was carried into effect in 1948 prohibited banks from underwriting corporate securities partially because of the concern that combining the banking and securities businesses might result in a potential conflict of interest this paper studies the pricing and long term default performance of industrial bonds underwritten by commercial banks the industrial bank of japan ibj and trust firms as compared to those underwritten by investment houses during the pre war period in japan when banks were allowed to underwrite industrial bonds the evidence rejects the concern about the conflicts of interest

probabilistic time scheduling model for an exponentially decaying inventory when delays in payments are permissible abstract a probabilistic time scheduling model is developed for an exponentially decaying inventory when the supplier offers some credit period t for settling the accounts for the purchase quantity the credit period t is known constant mathematical models are derived for both the cases i t t and ii t t expressions are derived for the total average expected cost of the system the optimum cycle time and the time for obtaining optimum order levels s s0 under each case the model is illustrated in two particular forms

intellectual property rights and developing country agriculture abstract theoretical studies indicate that the welfare of the developing countries might either be improved or damaged by the strengthening of their own intellectual property rights net gains through their agricultural sectors will be positive if the payoff from new innovations is sufficiently different as compared to the technology exporting countries scattered evidence supports the hypotheses that agricultural r d is responsive to iprs in developing countries but there is also evidence that developed country technology is sufficiently appropriate for developing countries as to offer substantial free rider gains however without iprs it seems unlikely that the agricultural productivity rates in developing countries can begin to catch up with those in developed country agriculture

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

what s different about banks abstract negotiable certificates of deposit cd s trade in the capital market in competition with other securities like commercial paper and bankers acceptances if cd s must pay lenders competitive monetary interest the reserve tax on cd s is borne by bank borrowers viability of the tax means there must be something special about bank loans that makes some borrowers willing to pay higher interest rates than those on other securities of equivalent risk moreover there must be something special about banks that prevents other intermediaries from competing to assure that it never pays to finance loans with cd s

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

optimal order policy for deteriorating items with inflation induced demand abstract this paper presents the optimal inventory replenishment policy of deteriorating items under inflationary conditions using a discounted cash flow dcf approach over a finite planning horizon a dcf approach permits a proper recognition of the financial implication of the opportunity cost and out of pocket costs in inventory analysis it also permits an explicit recognition of the exact timing of cash flows associated with an inventory system the demand rate is assumed to be a function of inflation shortages are allowed and completely backlogged optimal solution for the proposed model is derived and the effects of deterioration and inflation on the optimal inventory replenishment policy are studied with the help of numerical example

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

signalling and the pricing of new issues this paper develops a signalling model with two signals two attributes and a continuum of signal levels and attribute types to explain new issue underpricing both the fraction of the new issue retained by the issuer and its offering price convey to investors the unobservable intrinsic value of the firm and the variance of its cash flows many of the model s comparative statics results are novel empirically testable and consistent with the existing empirical evidence on new issues in particular the degree of underpricing which can be inferred from observable variables is positively related to the firm s post issue share price

why do southern countries have little incentive to protect northern intellectual property rights instead of focusing on the conflict of interests between north and south the author studies the conflict of interests among southern countries and provides an alternative answer to the question why do southern countries have little incentive to protect northern intellectual property rights owing to the incentive of each southern country to free ride on other southern countries with respect to providing protection the overall protection they provide is not sufficient therefore a new source of mutual gains exists among southern countries and also between north and south a joint effort of southern countries is required to exploit these gains

optimal retailer s replenishment decisions in the epq model under two levels of trade credit policy abstract the main purpose of this paper is to investigate the optimal retailer s replenishment decisions under two levels of trade credit policy within the economic production quantity epq framework we assume that the supplier would offer the retailer a delay period and the retailer also adopts the trade credit policy to stimulate his her customer demand to develop the retailer s replenishment model under the replenishment rate is finite furthermore we assume that the retailer s trade credit period offered by supplier m is not shorter than the customer s trade credit period offered by retailer n m n since the retailer cannot earn any interest in this situation m n based upon the above arguments this paper incorporates both chung and huang k j chung y f huang the optimal cycle time for epq inventory model under permissible delay in payments international journal of production economics 84 2003 307 318 and huang y f huang optimal retailer s ordering policies in the eoq model under trade credit financing journal of the operational research society 54 2003 1011 1015 under above conditions in addition we model the retailer s inventory system as a cost minimization problem to determine the retailer s optimal replenishment decisions then three theorems are developed to efficiently determine the optimal replenishment decisions for the retailer we deduce some previously published results of other authors as special cases finally numerical examples are given to illustrate the theorems obtained in this paper then as well as we obtain a lot of managerial insights from numerical examples

endogenous r d and intellectual property laws in developed and emerging economies the incentive of providing protection of intellectual property has been analyzed both for an emerging economy as well as for a developed economy the optimal patent length and the optimal patent breadth within a country are found to be positively related to each other for a fixed structure of laws abroad moreover a country can respond to stronger patent protection abroad by weakening its patent protection under certain circumstances and by strengthening its patent protection under other circumstances these results depend upon the curvature of the r d production function finally we investigate the impact of an increase in the willingness to pay in the emerging economy and find conditions under which there is an improvement in both patent length as well as patent breadth in the emerging economy

appropriate health r d and intellectual property rights reform in developing countries welfare implications of imposing intellectual property rights ipr protection on health goods in developing countries are analysed using a north south model consumption of health goods counteracts adverse effects of region specific diseases on labour supply health needs differ between consumers in innovating and imitating countries weakening the benefits of southern ipr enforcement for the north and strengthening the benefits for the south southern regions with unique health needs are more likely to benefit from ipr enforcement if healthcare infrastructure is adequate and the southern market is large enough to stimulate sufficient innovation there is then also interregional income convergence

an inventory model with deteriorating items under inflation when a delay in payment is permissible abstract this study develops an inventory model for initial stock dependent consumption rate when a delay in payment is permissible in the inventory model shortages are not allowed the effect of the inflation rate deterioration rate initial stock dependent consumption rate and delay in payment are discussed in the study mathematical models are also derived under two different circumstances i e case i the credit period is less than or equal to the cycle time for settling the account and case ii the credit period is greater than the cycle time for settling the account besides expressions for an inventory system s total cost are derived for these two cases moreover a computational procedure and gino lasdon et al acm transactions mathematical software 4 1978 34 50 are proposed to obtain the optimal order size and cycle time the results can help managers determine the optimal total cost finally a numerical example demonstrates the applicability of the proposed model

endogenous research and development and intellectual property laws in developed and emerging economies author affiliation aniruddha bagchi abagchi kennesaw eduabhra roy aroy1 kennesaw edu acknowledgment this paper was presented at the international industrial organization conference may 2008 and we thank the conference participants we would also like to thank two anonymous referees who helped us in substantially improving the paper 1 introductionthere has been a recent literature summarized in maskus 2000 that analyzes the determinants of the intellectual property ip laws this article builds on this literature by examining the incentive of a country in providing ip protection when research and development r d effort is endogenously determined we analyze this incentive both for a developed economy and for an emerging economy it is natural to conjecture that in a two country model if one country improves its patent protection then the other country would free ride and reduce its own level of patent protection scotchmer 2004a p 330 this conjecture generally holds if r d effort is assumed to be exogenous however we show that if r d effort is endogenized then such a conclusion can hold only under certain circumstances indeed it is possible to show that there are situations under which an improvement in ip laws in the developed economy can lead to a simultaneous improvement of such laws in the emerging economy our analysis can therefore be used to determine conditions under which countries can free ride on each other in framing ip laws and conditions under which they cooperate interestingly in our model such cooperation can be achieved by countries acting in their best interest and not because of international treaties we also use our model to analyze conditions for convergence of ip laws between developed and emerging economies from the perspective of ip laws the most important differences between developed and emerging economies are that emerging economies have lower incomes and a lower level of research capability one can conjecture that if there is a convergence between the developed and emerging economies in both of these dimensions then there should be a convergence of their ip laws as well but in that case it is not clear if the convergence in ip laws is because of the convergence of incomes or because of the convergence of research capabilities however the role of each of these dimensions can be isolated if there is a convergence in only one of these dimensions to do so we focus on the impact on ip laws if there is convergence in incomes without a commensurate convergence in research capabilities 1 therefore in our framework the main difference between an emerging and a developed country is that the former has a domestic firm that engages in r d while the latter has a domestic firm that only imitates a new technology whenever possible while we agree that there are many points of difference between an emerging economy and a developed economy we focus on this difference since it seems to be the most relevant for the purpose of analyzing the different ip regimes that would emerge in equilibrium in either type of economy 2 further throughout the analysis ip laws refer to the choice of patent length and breadth in the model we analyze the solution to the following questions on the structure of ip laws i what is the relationship between the optimal patent length and the optimal patent breadth in a country given a fixed structure of ip laws in other countries in other words if a change in circumstances necessitates an improvement in the degree of patent protection in a particular country given a fixed degree of ip protection abroad how is this improvement achieved ii what is the relationship of the patent regimes across countries in other words if one country strengthens its patent laws should the other country s best response be to weaken its patent laws

an eoq model under retailer partial trade credit policy in supply chain abstract the main purpose of this paper is to investigate the retailer s inventory policy under two levels of trade credit to reflect the supply chain management situation in this paper we assume that the retailer has the powerful decision making right so we extend the assumption that the retailer can obtain the full trade credit offered by the supplier and the retailer just offers the partial trade credit to his her customer then we investigate the retailer s inventory system as a cost minimization problem to determine the retailer s optimal inventory policy under the supply chain management two easy to use theorems are developed to efficiently determine the optimal inventory policy for the retailer we deduce some previously published results of other researchers as special cases finally numerical examples are given to illustrate the theorems and obtain a lot of managerial phenomena

optimal ordering policies under conditions of extended payment privileges this paper develops optimal order quantities for firms that are offered a one time opportunity to delay payment for an order of a commodity such delayed payments result in a reduction of the effective purchase cost which is a function of the return available on alternative investments the number of units of the commodity ordered and the length of the extended period optimal order quantities are developed for extended payment privileges that occur at a reorder point of between reorder points six suppliers extended payment scenarios are evaluated a simulation analysis is conducted to determine the sensitivity of derived models to changes in the various input parameters the simulation with realistic parameter values reveals that the additional discounted order quantity is insensitive to large changes in the ordering cost and unit price sensitive to changes in the carrying cost and return rate of funds but without significantly affecting the total cost and extremely sensitive to the annual demand

a century of evolution from harris s basic lot size model survey and research agenda abstract determining the economic lot size has always represented one of the most important issues in production planning this problem has long attracted the attention of researchers and several models have been developed to meet requirements at minimum cost in this paper we explore and discuss the evolution of these models during one hundred years of history starting from the basic model developed by harris in 1913 up to today following harris s work a number of researchers have devised extensions that incorporate additional considerations the evolution of eoq theory strongly reflects the development of industrial systems over the past century here we outline all the research areas faced in the past by conducting a holistic analysis of 219 selected journal papers and trying to give a comprehensive view of past work on the eoq problem finally a new research agenda is proposed and discussed

heterogeneity of southern countries and southern intellectual property rights policy we develop a model with one innovating northern firm and heterogeneous southern firms that compete in a final product market we assume southern firms differ in their ability to adapt technology and study southern incentives to protect intellectual property rights we find that in a non cooperative equilibrium governments resist ipr protection but collectively southern countries benefit from some protection we show that in general countries with more efficient firms prefer higher collective ipr protection than those with less efficient firms given the aggregate level of ipr protection it is more efficient if the more efficient countries have weaker ipr protection les auteurs developpent un modele dans lequel coexistent une entreprise innovatrice du nord et des entreprises heterogenes du sud qui se concurrencent dans un marche de produit final on postule que les entreprises du sud different dans leur capacitea adopter la technologie et on etudie les differentes incitations au sud a proteger les droits de propriete intellectuelle dpi il appert que dans un equilibre sans cooperation les gouvernements resistent a la pression pour qu on protege les dpi mais que collectivement ils beneficient de cette protection on montre qu en general les pays dont les entreprises sont les plus efficaces supportent une protection collective des dpi plus robuste que ne le font les pays dont les entreprises sont moins efficaces le niveau general de protection des dpi etant donne c est plus effectif si les pays les plus efficaces ont des niveaux de protection des dpi plus faibles

an investigation of cost differences between public sales and private placements of debt abstract we examine the cost differences between public sales and private placements of debt for a sample of public utility issues the lowest cost method depends on a firm s transaction costs which comprise flotation costs agency costs and the costs of searching the market our findings suggest that firms minimize the cost of issuing securities by selecting the market providing the lowest transaction costs

the north s intellectual property rights standard for the south abstract we build a multi sectoral north south trade model to analyze international intellectual property rights ipr protection by comparing the nash equilibrium ipr protection standard of the south the developing countries with that of the north the developed countries we find that the former is naturally weaker than the latter moreover we show that both regions can gain from an agreement that requires the south to harmonize its ipr standards with those of the north and the north to liberalize its traditional goods market this demonstrates the merits of multi sectoral negotiations in the gatt wto

borrowing relationships intermediation and the cost of issuing public securities abstract this paper investigates how an established borrowing relationship affects the costs associated with initial public offerings of equity our model illustrates how the existence of a borrowing relationship reduces the ex ante uncertainty about the value of the issuing firm s equity in the secondary market if underpricing is related to uncertainty a borrowing relationship can reduce underpricing empirically we find that other things equal ipos of firms with previously established borrowing relationships are underpriced substantially less than other ipos

economic order quantity under conditionally permissible delay in payments abstract within the economic order quantity eoq framework the main purpose of this paper is to investigate the retailer s optimal replenishment policy under permissible delay in payments all previously published articles dealing with optimal order quantity with permissible delay in payments assumed that the supplier only offers the retailer fully permissible delay in payments if the retailer ordered a sufficient quantity otherwise permissible delay in payments would not be permitted however in this paper we want to extend this extreme case by assuming that the supplier would offer the retailer partially permissible delay in payments when the order quantity is smaller than a predetermined quantity under this condition we model the retailer s inventory system as a cost minimization problem to determine the retailer s optimal inventory cycle time and optimal order quantity three theorems are established to describe the optimal replenishment policy for the retailer some previously published results of other researchers can be deduced as special cases finally numerical examples are given to illustrate all these theorems and to draw managerial insights

the optimal retailer s ordering policies for deteriorating items with limited storage capacity under trade credit financing abstract under permissible delay in payments all previously published models implicitly assumed that the supplier would offer the retailer a delay period but the retailer would not offer the trade credit period to his her customer huang 2003 journal of the operational research society 54 1011 1015 developed a retailer s replenishment model to reflect the real life situations by assuming that the retailer also adopts the trade credit policy to stimulate his her customer demand in huang s model it is assumed that the goods are not perishable and the storage capacity is unlimited based upon the above argument we propose a two warehouse inventory model for deteriorating items under permissible delay in payments three theorems are developed to determine the optimal cycle time and numerical examples are given to illustrate these theorems finally the results in this paper generalize the results presented by huang 2003 journal of the operational research society 54 1011 1015

bank lending and initial public offerings abstract in this paper we test the hypothesis that banking relations are a signal about firm value we argue that bank processing of asymmetric information and external monitoring of corporate activities reduce the ex ante uncertainty of investors about firm value we demonstrate that the existence of bank debt and or lines of credit lowers the expected initial return associated with initial public offerings the empirical results are robust with respect to the inclusion of variables which reflect other mechanisms that can ameliorate ex ante uncertainty our work adds to the body of evidence that supports the hypothesis that intermediaries provide valuable asset services to corporate borrowers

effects of inflation and time value of money on an inventory model with linear time dependent demand rate and shortages abstract in the present paper an attempt has been made to investigate the effects of inflation and time value of money on an inventory model with linear time dependent demand rate shortages are allowed in this model the model developed in this article is a finite horizon t si policy inventory model to the best of the authors knowledge such type of inventory model has not been considered earlier a numerical example has also been given to illustrate the developed model

an eoq model with deteriorating items under inflation when supplier credits linked to order quantity abstract this study proposes an inventory model under a situation in which the supplier provides the purchaser a permissible delay of payments if the purchaser orders a large quantity shortages are not allowed and the effect of the inflation rate deterioration rate and delay in payment are discussed as well as a result in this paper we establish an eoq model for deteriorating items under inflation when the supplier offers a permissible delay to the purchaser if the order quantity is greater than or equal to a predetermined quantity we then characterize the optimal solution and provide an easy to use algorithm to find the optimal order quantity and replenishment time finally some numerical examples are given to illustrate the theoretical results and made the sensitivity analysis of parameters on the optimal solutions

the benefits of lending relationships evidence from small business data this paper empirically examines how ties between a firm and its creditors affect the availability and cost of funds to the firm we analyze data collected in a survey of small firms by the small business administration the primary benefit of building close ties with an institutional creditor is that the availability of financing increases we find smaller effects on the price of credit attempts to widen the circle of relationships by borrowing from multiple lenders increases the price and reduces the availability of credit in sum relationships are valuable and appear to operate more through quantities rather than prices