bluuebunny/crossref_metadata_2025 huggingface dataset:
A Minimax Approach to Cost Variance Investigation with Imperfect Parameter Knowledge
Authors: Finley David R.
Published: June 2007

Although models of the multiperiod cost variance investigation decision problem have been extensively analyzed, their implementation is hindered by the manager's lack of knowledge of parameter values essential to determining the optimal investigation strategy. This paper develops a minimax approach to determine a reasonable investigation strategy, even without knowledge of certain parameters. Specifically, the Dittman‐Prakash Markovian variance investigation model is modified to allow specification of a suitable strategy when neither the probability of staying in the in‐control state nor the expected cost for the out‐of‐control state is known. An objective function based on controllable costs is derived and a solution technique for the resulting minimax problem is developed. Numerical results indicate that the inherently robust minimax approach captures most of the cost savings available from methods that place greater input demands on the manager.
Freezing the Master Production Schedule Under Demand Uncertainty
Authors: Sridharan V. , Berry William L.
Published: June 2007

Managing the trade‐off between achieving a stable master production schedule (MPS) and being responsive to changes in customer requirements is a difficult problem in many firms where providing a high level of customer service is viewed as an important competitive factor. One alternative for managing this trade‐off is to freeze an agreed portion of the MPS. This paper investigates the impact of adjustments in the design parameters of MPS freezing methods on two performance measures (MPS lot‐sizing cost and stability) under stochastic demand conditions in a rolling planning horizon environment given a service level target. Simulation experiments are reported which indicate that many of the conclusions regarding the design of MPS freezing methods obtained under deterministic demand conditions hold under stochastic demand.
Committee Decision Making in Organizations: An Experimental Test of the Core
Authors: Steckel Joel H.
Published: June 2007

One concept that has been widely supported in experiments on predicting the outcome of majority‐rule voting committees is the Core, the set of alternatives that cannot be defeated by any other in a binary contest. Unfortunately, the applicability of these experiments to organizations is limited by a set of rigid controls intended to ensure that the experiments are internally valid. This paper tests the Core in a laboratory environment that relaxes these controls. The Core is found to be highly predictive under these relaxed conditions, thereby enhancing confidence in its external validity.
The Individually Responsible and Rational Decision Approach to Economic Lot Sizes for One Vendor and Many Purchasers
Authors: Joglekar Prafulla , Tharthare Suresh
Published: June 2007

Banerjee's [2] joint economic lot size (JELS) model, along with related works by Monahan [12] and Lal and Staelin [10], represents one approach to minimizing the total inventory carrying and ordering costs of a vendor and his purchaser(s). Noting that JELS philosophy requires a coordinated system and that its practical implementation is problematic, we present an alternative approach to the same problem: the individually responsible and rational decision (IRRD) approach. The IRRD approach is consistent with a free enterprise system and easy to implement. In order to show that the IRRD approach is also more economical than the JELS approach, we first build a more refined JELS model for the case of one vendor and many identical purchasers. Drawing on earlier criticisms of specific JELS models, our refinement relaxes the lot‐for‐lot assumption commonly used by JELS scholars. To be comparable with earlier works, we retain the assumption of deterministic conditions and demonstrate the economic advantages of IRRD over JELS through a numerical example. An algebraic proof of IRRD's superiority over JELS is offered in the more general and realistic case of a vendor dealing with K nonidentical purchasers with reasonably predictable annual demand but uncertain order quantities and timings.
An Evaluation of the Role and Performance of a Decision Support System in Business Education*
Authors: King William R. , Premkumar G. , Ramamurthy K.
Published: June 2007

With the rapid growth in end‐user computing, there has been an increasing demand on business schools to train managers in the use of computers for effective decision support. While computer‐aided instruction (CAI) has been in vogue for over a decade, there are very few studies that evaluate the impact of computers on decision‐making skills in a business education context. The study makes use of a controlled experiment to evaluate the impact of computers on the accuracy and quality of decision making in a business decision support context. It also addresses the relationships between decision performance and various student characteristics such as aptitude, attitude, domain experience, domain expertise, gender, and system experience. The study revealed that computer support positively influenced both dimensions of decision performance.
Estimation of Nonlinear Models in the Presence of Measurement Error*
Authors: Higgins Lexis F. , Judd Charles M.
Published: June 2007

Techniques used in decision sciences and business research to estimate interactions between latent variables are limited in controlling for measurement error. This article uses a latent structure modeling approach that substantially controls for measurement error in nonlinear relationships. The results of this technique are compared to the results obtained applying hierarchical regression analysis and the impact of measurement error is assessed. The paper provides a unique assessment of the validity of the multi‐attribute attitude model. The validity of the multiplicative rule in the model is supported.
A Maximum‐Entropy Based Heuristic for Density Estimation from Data in Histogram Form*
Authors: Golany B. , Phillips F. Y.
Published: June 2007

We look at a specific but pervasive problem in the use of secondary or published data in which the data are summarized in a histogram format, perhaps with additional mean or median information provided; two published sources yield histogram‐type summaries involving the same variable, but the two sources do not group the values of the variable the same way; the researcher wishes to answer a question using information from both data streams; and the original, detailed data underlying the published summary, which could give a better answer to the question, are unavailable. We review relevant aspects of maximum‐entropy (ME) estimation, and develop a heuristic for generating ME density estimates from data in histogram form when additional means and medians may be known. Application examples from several business and scientific areas illustrate the heuristic's use. Areas of application include business and social or market research, risk analysis, and individual risk profile analysis. Some instructional or classroom applications are possible as well.
Distributed Computer System Capacity Planning and Capacity Loading
Authors: Chakravarty Amiya , Jain Hemant K.
Published: June 2007

The availability of micro‐, mini‐, and super computers has complicated the laws governing the economies of scale in computers and has increased the tendency to decentralize and distribute computing power. The optimal design of such a system requires integration of computers of varying power and a strategy for capacity loading. This paper considers the problem of capacity planning and capacity loading of a distributed computer system as a hierarchy of decisions. A linear programming model is developed for the initial capacity planning problem. A loading model that accounts for variations in arrival and processing rates of the jobs in a dynamic environment is developed to support the operations.
The Effects of Memory Structure on Using Rule‐Based Expert Systems for Training: A Framework and an Empirical Test*
Authors: Pei Buck K.W. , Reneau J. Hal
Published: June 2007

One justification for eliciting and representing the judgment strategy of an expert in a rule‐based expert system (RBES) is to facilitate knowledge transfer to individuals with less expertise. However, prior research suggests complexities and potential problems when using RBESs for training. In this paper, a conceptual framework of user learning from RBESs is presented. It is proposed that learning may be ineffective when the problem representation of the RBES is inconsistent with the user's mental representation of the task‐domain knowledge.

An experiment was conducted to examine the effects of consistency (inconsistency) between the problem‐solving strategy of RBESs and individuals' memory structures. Groups of subjects whose memory structure either matched or did not match two RBESs' problem‐solving strategies were examined using an internal control evaluation task. The results suggest that learning was facilitated only for groups with congruence between the RBES's problem‐solving strategy and a subject's memory structure.
Two Stochastic Multidimensional Choice Models for Marketing Research
Authors: Carroll J. Douglas , Soete Geert De , DeSarbo Wayne S.
Published: June 2007

Two recently developed probabilistic multidimensional models for analyzing pairwise choice data are introduced, discussed in terms of their differential properties, and extended in several ways. The first one, the wandering vector model, was originally suggested by Carroll [12] and extended by De Soete and Carroll [30]. The second model, called the wandering ideal point model, is a more recently proposed [32] unfolding analog of the wandering vector model. A general maximum likelihood estimation method for fitting the various models described is mentioned, as well as a statistical test for assessing the goodness of fit. Finally, an application of the models is provided concerning consumer choice for some 14 brands of over‐the‐counter analgesics to illustrate how such models can be gainfully utilized for marketing decision making concerning product positioning.
Vendor Performance and Alternative Manufacturing Environments*
Authors: Benton W. C. , Krajewski Lee
Published: June 2007

Today, many American firms are demanding a high level of performance from their major suppliers while at the same time reducing the number of them. Vendor performance is an important aspect of maintaining low production costs and high product quality. In this study, we examine the effects of poor vendor quality and vendor lead time uncertainty in a variety of manufacturing environments using a comprehensive simulation model. The results indicate that the effect of poor vendor performance on various manufacturing firms depends on the number of stocking points and the degree of component commonality. Moreover, disruption of the manufacturing system caused by poor vendor performance can be manifested in higher levels of inventory and order backlogs. We introduce the concept of supplyside uncertainty, as it relates to component‐part commonality, to demonstrate that in certain environments commonality reduces order backlogs but increases total inventories and creates an environment that is very sensitive to vendor quality problems. Finally, several conjectures are posited for future research.
Decision Making in an Automated Environment: The Effects of Anonymity and Proximity with a Group Decision Support System*
Authors: Jessup Leonard M. , Tansik David A.
Published: June 2007

Recent advances in information systems technology have made it possible to support the work of interacting groups using networked personal computers. A laboratory experiment was conducted using a group decision support system to evaluate effects of anonymity and proximity on group process in automated group problem solving. Twenty groups of four persons each performed an idea‐generating task using an interactive electronic brainstorming program. This experiment's main findings were: (1) Group members working anonymously and apart generated more comments. (2) Working in the same room increased satisfaction. (3) Highest levels of perceived system effectiveness were reported under anonymity.
An Efficient Zero‐One Formulation of the Multilevel Lot‐Sizing Problem
Authors: McKnew Mark A. , Saydam Cem , Coleman B. Jay
Published: June 2007

This paper presents a zero‐one linear formulation of the multilevel lot‐sizing problem for materials requirement planning systems without capacity constraints. The model is an efficient statement of the problem and has a structure that is particularly convenient for research work. In addition, it is demonstrated that the relaxed linear programming solution to this formulation will always be integer. The results of a rather large computational history are reported along with a variable reduction methodology that allows for the solution of reasonably sized research problems.
How Long Should a Customer Wait for Service?
Authors: Davis Mark M.
Published: June 2007

A major concern for service managers is the determination of how long a customer should wait to be served. Services, due to the customer's direct interaction with the process, must face a trade‐off between minimizing the cost of having a customer wait and the cost of providing good service. A total cost model is presented for determining how long a customer should wait when these two conflicting cost components are considered. An integral part of this model includes a measure of customer satisfaction with waiting time which is used to develop a waiting cost function. The model is then applied to a major fast food chain, using data collected at several locations. Analysis of the data reveals that the “ideal” waiting time for this firm is significantly less than the current corporate waiting time policy. Thus, as indicated by the model, a corporate policy change is recommended to provide much faster service. The adoption of such a policy would result in increased labor costs, and would simultaneously increase the firm's overall profits. Although appearing contradictory, increases in current labor costs and long‐term profits are both possible when management takes the long‐range perspective suggested in this paper.
A Comparative Evaluation of Labor Tour Scheduling Methods
Authors: Bechtold Stephen E. , Brusco Michael J. , Showalter Michael J.
Published: June 2007

This paper presents an initial study of relative performance for a number of the labor tour scheduling heuristic methods proposed in the literature. These heuristic methods were classified as either linear programming (LP) based or construction. Each of the methods was applied to a tour scheduling problem, subject to a variety of labor demand requirements distributions, with the singular objective being the minimization of total labor hours scheduled. Statistical analysis revealed that effective tour schedule solutions were generated by both LP‐based and construction methods. Since the performances of the Keith [13], Morris and Showalter [18], and Bechtold and Showalter [5] methods were superior, their solutions were also compared across a number of secondary criteria. An overall analysis of the performances of these three methods resulted in the identification of a number of important managerial and decision‐making issues. We conclude that service operations management should consider integrating these heuristic methods into a decision support system. Finally, suggestions for future research are provided.
Tour Scheduling and Task Assignment of a Heterogeneous Work Force: A Heuristic Approach
Authors: Loucks John S. , Jacobs F. Robert
Published: June 2007

The dual problem of work tour scheduling and task assignment involving workers who differ in their times of availability and task qualifications is examined in this paper. The problem is presented in the context of a fast food restaurant, but applies equally well to a diverse set of service operations. Developing a week‐long labor schedule is a nontrivial problem, in terms of complexity and importance, which a manager spends as much as a full workday solving.

The primary scheduling objective (the manager's concern) is the minimization of overstaffing in the face of significant hourly and daily fluctuations in minimum staffing requirements. The secondary objective (the workers’ concern) is the minimization of the sum of the squared differences between the number of work hours scheduled and the number targeted for each employee. Contributing to scheduling complexity are constraints on the structure of work tours, including minimum and maximum shift lengths and a maximum number of workdays.

A goal programming formulation of a representative problem is shown to be too large, for all practical purposes, to be solved optimally. Existing heuristic procedures related to this research possess inherent limitations which render them inadequate for our purposes. Subsequently, we propose and demonstrate a computerized heuristic procedure capable of producing a labor schedule requiring at most minor refinement by a manager.
Production System Development for Expert Systems Using a Recursive Partitioning Induction Approach: An Application to Mortgage, Commercial, and Consumer Lending
Authors: Cronan Timothy P. , Glorfeld Louis W. , Perry Larry G.
Published: June 2007

The concepts of expert systems and decision support systems have received considerable attention recently. While systems have been proposed for various problem areas in business, difficulties still exist in the knowledge acquisition phase of development. This paper presents a recursive partitioning analysis (RPA) approach to knowledge acquisition. The RPA production system approach was applied to data sets representing the mortgage, commercial, and consumer lending problems. Comparison of the classification rates across these problems to the results of a generalized inductive inference production system (Quinlan's ID3 algorithm) and across the mortgage and commercial lending problems to traditional statistical modeling approaches indicated that the RPA approach provided superior results while using fewer variables.
Modelling Survey Response Data and Determining the Optimal Number of Questionnaires
Authors: Wilson John G. , Singer E. Mendel
Published: June 2007

A modification of Huxley's [3] mail response model is proposed. This new approach retains the simplicity and intuitiveness of Huxley's technique and leads to statistically valid conclusions. Using this model, a procedure is developed to find the optimal number of questionnaires that should be mailed in order to meet some prespecified target.
Decisional Conflict and User Acceptance of Multicriteria Decision‐Making Aids*
Authors: Kottemann Jeffrey E. , Davis Fred D.
Published: June 2007

Despite the development of increasingly sophisticated and refined multicriteria decision‐making (MCDM) methods, an examination of the experimental evidence indicates that users most often prefer relatively unsophisticated methods. In this paper, we synthesize theories and empirical findings from the psychology of judgment and choice to provide a new theoretical explanation for such user preferences. Our argument centers on the assertion that the MCDM method preferred by decision makers is a function of the degree to which the method tends to introduce decisional conflict. The model we develop relates response mode, decision strategy, and the salience of decisional conflict to user preferences among decision aids. We then show that the model is consistent with empirical results in MCDM studies. Next, the role of decisional conflict in problem formulation aids is briefly discussed. Finally, we outline future research needed to thoroughly test the theoretical mechanisms we have proposed.
Data and Model Management in a Generalized MCDM‐DSS*
Authors: Hong Ilyoo B. , Vogel Doug R.
Published: June 2007

Drawing upon the choice models developed in the multiple criteria decision making (MCDM) area, this paper proposes an architecture for designing an intelligent decision support system (DSS) that is intended to aid in making choices among multiple alternatives along multiple dimensions. It argues that effective support can be provided to the decision maker when the knowledge‐based DSS is capable of dynamically selecting choice models appropriate to the domain and context of a particular problem being specified by the decision maker, and of properly applying them to the problem solution. Development of a prototype intended to partially represent application of the architecture is described. The paper concludes with suggestions for research extensions.
A Bicriterion Maximal Covering Location Formulation Which Considers the Satisfaction of Uncovered Demand
Authors: Church Richard , Current John , Storbeck James
Published: June 2007

There have been many applications of the maximal covering location problem (MCLP). An underlying assumption of the MCLP is that demand not covered (i.e., not within a prespecified maximal distance of a facility) is not served. This may be an unrealistic assumption in many location planning scenarios, especially in the public sector. For example, in cases such as fire protection or ambulance service, calls not technically covered will still be serviced. The MCLP, however, does not consider the distances or travel times necessary to service such demand.

This paper presents a bicriterion locational covering model which explicitly considers the travel distance or time necessary to service demand not within the maximal covering distance of a facility. The model may be used to generate noninferior (Pareto optimal) siting configurations which demonstrate the inherent trade‐offs between a siting scheme designed to maximize total coverage and one designed to minimize total travel time for uncovered demand to reach its nearest facility. In addition, it is shown that for any particular weighting scheme on the two objectives, the problem can be solved as a p‐median problem; a problem for which several efficient solution methods exist.
When Restrictive Constraints Are Nonbinding: Illustrations and Implications
Authors: Martinich Joseph S.
Published: June 2007

For convex and concave mathematical programs restrictive constraints (i.e., their deletion would change the optimum) will always be binding at the optimum, and vice versa. Less well‐known is the fact that this property does not hold more generally, even for problems with convex feasible sets. This paper demonstrates the latter fact using numerical illustrations of common classes of problems. It then discusses the implications for public policy analysis, econometric estimation, and solution algorithms.
An Experimental Study of the Effectiveness of Three Debiasing Techniques*
Authors: Büyükkurt B. Kemal , Büyükkurt Meral Demirbag
Published: June 2007

Subjective probability distributions constitute an important part of the input to decision analysis and other decision aids. The long list of persistent biases associated with human judgments under uncertainy [16] suggests, however, that these biases can be translated into the elicited probabilities which, in turn, may be reflected in the output of the decision aids, potentially leading to biased decisions.

This experiment studies the effectiveness of three debiasing techniques in elicitation of subjective probability distributions. It is hypothesized that the Socratic procedure [18] and the devil's advocate approach [6] [7] [31] [32] [33] [34] will increase subjective uncertainty and thus help assessors overcome a persistent bias called “overconfidence.” Mental encoding of the frequency of the observed instances into prespecified intervals, however, is expected to decrease subjective uncertainty and to help assessors better capture, mentally, the location and skewness of the observed distribution. The assessors' ratings of uncertainty confirm these hypotheses related to subjective uncertainty but three other measures based on the dispersion of the elicited subjective probability distributions do not. Possible explanations are discussed. An intriguing explanation is that debiasing may affect what some have called “second order” uncertainty. While uncertainty ratings may include this second component, the measures based on the elicited distributions relate only to “first order” uncertainty.
A Tripartite Approach to Information Systems Development*
Authors: Bullers William I.
Published: June 2007

Management information systems (MIS) development is a process in which a user's vague, ambiguous, informal thoughts are translated into precise, nonambiguous, formal systems specifications required for implementation on a computer. A variety of MIS development methodologies have been developed, many designed to model a business‐oriented MIS in which either function modeling or data modeling predominates. Yet many of these techniques are inadequate for modeling time‐dependent behavior of the MIS, particularly when the MIS involves asynchronous, concurrent execution of cooperating processes. This paper proposes a tripartite approach to MIS development in which descriptions of “what” the MIS is to do, and “how” it is to do it are more closely related to the actual system implementation than with traditional development methodologies. The technique is based on three independent modeling tools used in conjunction: data flow diagrams, Petri nets, and production rules. The methodology in the context of computer integrated manufacturing systems is illustrated.
A Comment on Second‐Order Polynomial Regression Models
Authors: Dadkhah Kamran M.
Published: June 2007

In a recent article, Chatterjee and Greenwood [1] addressed the problem of multicollinearity in polynomial regression models. They noted that there is a high correlation between X and X2; therefore, a second‐order polynomial model suffers the consequences of collinearity. Chatterjee and Greenwood [1] suggested a method they believe will overcome the problem. The contention of the present comment is that the suggested method accomplishes nothing and, indeed, has the potential to lead the unwary researcher to the wrong inference and misinterpretation of his results.
A Simple Algorithm for the Mathematical Programming Approach to Joint Cost Allocation for Decision Making (Demand‐Adjusted‐Sales‐Value Algorithm)*
Authors: Cheng C. S. Agnes
Published: June 2007

This paper investigates the mathematical programming (MP) approach for decision making and cost allocation in the context of joint products. Through analysis of the MP approach to marginal‐value‐based cost allocations, an algorithm is developed to show that the allocations contain two elements: an element that is specific to individual joint products due to differences in demand elasticities, and an element based on relative adjusted sales values. If demand elasticities are identical for all joint products, then the traditional sales value method will generate the same cost allocation as the MP method. The new algorithm, the demand‐adjusted‐sales‐value algorithm (DASV), is especially helpful for solving the MP model with linear demand functions. The DASV algorithm provides an easy way to generate costs that are useful for optimal decision making.
Sensitivity Analysis in Linear Programming Models with Common Inputs
Authors: Camm Jeffrey D. , Burwell Timothy H.
Published: June 2007

The importance of sensitivity analysis information in linear programming has been stressed in the management science literature for some time. Indeed, Gal [3] has devoted an entire text to just this issue. Linear programs with common inputs (cost coefficients or right‐hand‐side values) present a problem in that classical sensitivity analysis does not allow for the simultaneous changes required to determine the sensitivity of these models to common inputs. We first survey the approaches previously developed for simultaneous‐change sensitivity analysis and cast them in the framework of the special common input case. These general techniques are compared to a simple aggregate variable technique that has not received attention in the literature.
A Simulation Study of Sequencing Rules in a Kanban‐Controlled Flow Shop*
Authors: Berkley Blair J. , Kiran Ali S.
Published: June 2007

This paper addresses the problem of sequencing in decentralized kanban‐controlled flow shops. The kanban production control system considered uses two card types and a constant withdrawal period. The flow shops are decentralized in the sense that sequencing decisions are made at the local workstation level rather than by a centralized scheduling system. Further, there are no material requirements planning (MRP)‐generated due dates available to drive dispatching rules such as earliest due date, slack, and critical ratio.

Local sequencing rules suitable for the decentralized kanban production‐control environment are proposed and tested in a simulation experiment. These rules are designed so that they can be implemented with only the information available at the workstation level. Example sequencing problems are used to show why the shortest processing time rule minimizes neither average work‐in‐process inventory nor average finished‐goods withdrawal kanban waiting time. Further, it is shown how work station supervisors can use the withdrawal period, in addition to the number of kanbans, to manage work‐in‐process inventories.
Relative Performance Evaluation and Risk Taking in Delegated Investment Decisions*
Authors: Chow Chee W. , Haddad Kamal M.
Published: June 2007

Providing proper incentives to firm managers is increasingly important in the current competitive environment. Analytical research has suggested that evaluating a manager's performance relative to that of a peer group, in conjunction with standard‐based pay, can induce efficient risk‐sharing between firm owners and managers while maintaining the latter's incentives to exert effort. To date, direct empirical tests of this proposition have not been reported.

This study uses a laboratory experiment to test the effect of relative performance evaluation on the risk‐aversion of delegated investment decisions. Project‐specific risk is operationalized using operating leverage, in part because the variability of a project's operating profits generally increases with this variable, and in part because many of the new manufacturing approaches held to be important to competitive advantage require significant capital investments and attendant increases in operating leverage. Across two levels of environmental uncertainty, subjects under a relative (as opposed to absolute) performance standard selected investments with significantly higher project‐specific risk. Also, as environmental uncertainty increased, subjects under an absolute standard significantly reduced the riskiness of their investments. In contrast, subjects shielded from environmental uncertainty by a relative standard chose investments of about equal riskiness under both low and high uncertainty conditions. If supported by future research, these findings would suggest that relative performance evaluation may reduce managers' reluctance to adopt risky capital investments, especially in firms operating in high‐risk economic or technological environments.
A Theory of Production Competence Revisited*
Authors: Vickery Shawnee K.
Published: June 2007

A recent article [3] proposed a definable relationship between production competence and business performance and presented empirical evidence to support the relationship. The purpose of this note is four‐fold. First, it corrects the authors' numerical measure of production competence. The correction changes the nature of the relationship between competence and performance. Second, this note suggests an improved numerical measure of business performance (the dependent variable in the study). The authors of [3] defined performance in a manner which inadvertently captures elements used to measure production competence (the independent variable). The result is a deceptively close fit of the authors' model with the data. The third purpose of the note is to introduce a more appropriate theoretical framework for the production competence construct. It is shown that production competence is closely related to the formulation and implementation of manufacturing strategy and can best be understood within that context. Last, an alternative conceptual model of the relationship between business strategy, production competence, and business performance is presented. The new model includes a construct which measures the “fit” of a firm's business strategy to its external, competitive environment.
A Decision Model for the Robot Selection Problem Using Robust Regression*
Authors: Khouja Moutaz , Booth David E.
Published: June 2007

Industrial robots are increasingly used by many manufacturing firms. The number of robot manufacturers has also increased with many of these firms now offering a wide range of models. A potential user is thus faced with many options in both performance and cost. This paper proposes a decision model for the robot selection problem. The proposed model uses robust regression to identify, based on manufacturers' specifications, the robots that are the better performers for a given cost. Robust regression is used because it identifies and is resistant to the effects of outlying observations, key components in the proposed model. The robots selected by the model become candidates for testing to verify manufacturers' specifications. The model is tested on a real data set and an example is presented.
Interface Style and Training Task Difficulty as Determinants of Effective Computer‐Assisted Knowledge Transfer*
Authors: Gal Graham , Steinbart Paul John
Published: June 2007

The transfer of expert knowledge to novices is one means of improving decision quality. Research needs to identify (1) the knowledge to be transferred to novices, and (2) the best method for transferring that knowledge. Studies that compare the judgment behavior of experienced and novice auditors address the first issue. The present study addresses the second issue in the context of using a computer‐assisted training (CAT) program. CAT was selected for study because of evidence that it can both improve the effectiveness and reduce the costs of training. An experiment was conducted in which two factors were manipulated: (1) the design of the human‐computer interface of the CAT program, and (2) the content of training tasks. The judgment of interest involved causal reasoning about the relationships between various internal control procedures and possible errors. The results indicate that alternative styles of interaction with a CAT program differ in terms of learning effectiveness. In addition, there was also evidence that training task content affected learning.
Determining the Critical Elements of Just‐In‐Time Implementation
Authors: Mehra Satish , Inman R. Anthony
Published: June 2007

There are a limited number of papers dealing primarily with the implementation aspect of JIT. While the literature shows almost general agreement on the critical elements of JIT implementation, few empirical studies exist to support the proposed elements. The purpose of this study is to identify the elements of JIT implementation that are required to ensure successful implementation. A number of implementation elements were identified and subsequently grouped into a hierarchical structure consisting of four broader elements. Criteria were selected as measures of the level of implementation success. Analysis revealed that only a few of the identified elements were indeed required for successful JIT implementation.
Chance Constrained Programming Approach to Empirical Analyses of Mutual Fund Investment Strategies*
Authors: Brockett Patrick L. , Charnes Abraham , Cooper William W. , Kwon Ku‐Hyuk , Ruefli Timothy W.
Published: June 2007

Chance constrained programming concepts are used to formalize risk and return relations which are then modeled for use in an empirical study of mutual fund behavior during the period 1984 through 1988. The publicly announced strategies of individual funds are used to form ex ante risk classifications which are employed in examining ex post performance. Negative relations between risk and return held in every year of the period studied. The bearing of these negative risk‐return findings for the Bowman paradox, as studied in the strategic management literature, are thus extended from the industrial firms studied by Bowman (and others) and shown to be present even in these investment oriented mutual funds in each of the years of the great bull market from 1984 through 1988. Finally, our use of chance constrained programming enables us to separate risk from return behavior and evaluate their relative strengths as sources of these negative relations, which are found to be more in the returns than the risks.
Marketplace Competition in the Personal Computer Industry*
Authors: Bridges Eileen , Ensor Katherine B. , Thompson James R.
Published: June 2007

A decision regarding development and introduction of a potential new product depends, in part, on the intensity of compeitition anticipated in the marketplace. In the case of a technology‐based product such as a personal computer (PC), the number of competing products may be very dynamic and consequently uncertain. We address this problem by modeling growth in the number of new PCs as a stochastic counting process, incorporating product entries and exits. We demonstrate how to use the resulting model to forecast competition five years in advance.
The Career Advancement Prospects of Managers and Professionals: Are MIS Employees Unique?
Authors: Igbaria Magid , Greenhaus Jeffrey H.
Published: June 2007

The present study examined the career advancement prospects of MIS and non‐MIS employees, as well as the relationships of career advancement prospects with job performance evaluations, job satisfaction, career satisfaction, and organizational commitment for MIS and non‐MIS professionals and managers. Participants included 134 MIS professionals and managers and 397 non‐MIS professionals and managers of a large communications company. The results provided no evidence that MIS employees experience more restricted career advancement prospects than non‐MIS employees. In addition, job performance evaluations generally had positive effects on career advancement prospects; career advancement prospects had a number of positive effects on job satisfaction, career satisfaction, and organizational commitment; and job satisfaction and career satisfaction had positive effects on organizational commitment. These findings are related to prior research, suggestions for future research are offered, and implications for the management of MIS employees are identified.
Introducing Discriminant Analysis to the Business Statistics Curriculum*
Authors: Ragsdale Cliff T. , Stam Antonie
Published: June 2007

Recently a good deal of interest and effort has been directed toward making statistics courses more effective in business schools. It is believed that a key to success in this area involves giving a more prominent role to statistical tools which are useful in actual business practice. If the research literature is any indication, discriminant analysis (DA) has many potential applications in virtually all areas of business. Yet, DA is rarely taught in undergraduate business and/or M.B.A. statistics courses. This is partially due to the fact that most presentations of DA are relegated to multivariate statistics texts that assume an advanced knowledge of linear algebra. This paper attempts to rectify this situation by proposing a simplified pedagogical approach for introducing linear DA in undergraduate and/or M.B.A. business statistics courses.
Decision Processes for Developing Strategic Applications of Information Systems: A Contingency Approach*
Authors: Sabherwal Rajiv , King William R.
Published: June 2007

Strategic applications of information systems (IS) are considered by IS researchers to be determined by contextual factors such as environmental uncertainty, and influenced by attributes of the processes preceding them, such as planning and top management support. For better management of the process leading to these applications, it is essential to understand the relationship between process attributes and contextual factors. Utilizing a contingency approach, this article takes a step toward such an understanding. Based on successful strategic IS applications from 81 large companies, it examines the relationship between the context of these applications and the decision‐making process leading to them. The results indicate that the external environment is related to whether a rational or political decision‐making process is used. The IS function seems to influence the use of the decision process implied by IS researchers, one in which the top management champions the strategic application, while the IS managers contribute by conducting in‐depth analysis. However, the organization structure was not related to any decision process attribute. The implications of these findings for future research and practice are also discussed.
Non‐Normality and the Design of Control Charts for Averages*
Authors: Yourstone Steven A. , Zimmer William J.
Published: June 2007

Non‐normality has a significant effect on the performance of control charts for averages. The design considerations for a control chart for averages must include recognition of the degree of non‐normality of the underlying data. The performance of a control chart may be judged on its ability to correctly identify the probabilities of assignable causes of variation and chance causes of variation in a process. This paper examines the effects of non‐normality, as measured by skewness and kurtosis, on the performance, and hence the design, of control charts for averages and provides an alternative method of designing charts for averages of data with non‐normal distributions.
Automatic Generation of Symbolic Multiattribute Ordinal Knowledge‐Based DSSs: Methodology and Applications*
Authors: Ben‐David Arie
Published: June 2007

A learning‐by‐example algorithm, the ordinal learning model (OLM), that automatically generates symbolic rule‐bases from examples was applied to four real‐world multiattribute ordinal problem domains. The model automatically generates consistent and irredundant symbolic classification rules that mimic, in many aspects, the behavior of human subjects who solved similar problems during empirical studies. The OLM's performance is compared with those of regression analysis and with C4, a well‐known symbolic learning‐by‐example decision tree building algorithm. The OLM uses mainly comparison operations and does not attempt to optimize the rule‐bases it generates. Yet, the results show that the OLM's predictions are very accurate and the resulting rule‐bases are relatively compact. The time required for constructing the rule‐bases via the OLM was very competitive as well.
Application of the Back Propagation Neural Network Algorithm with Monotonicity Constraints for Two‐Group Classification Problems*
Authors: Archer Norman P. , Wang Shouhong
Published: June 2007

Neural network techniques are widely used in solving pattern recognition or classification problems. However, when statistical data are used in supervised training of a neural network employing the back‐propagation least mean square algorithm, the behavior of the classification boundary during training is often unpredictable. This research suggests the application of monotonicity constraints to the back propagation learning algorithm. When the training sample set is preprocessed by a linear classification function, neural network performance and efficiency can be improved in classification applications where the feature vector is related monotonically to the pattern vector. Since most classification problems in business possess monotonic properties, this technique is useful in those problems where any assumptions about the properties of the data are inappropriate.
A Microeconomic Model of the Focused Factory‐Vertical Integration Strategic Decision Problem
Authors: Tannous George F. , Mangiameli Paul M.
Published: June 2007

The design of a manufacturing strategy incorporates the decision of whether to focus or vertically integrate, or adopt a policy somewhere between the two extremes. Unfortunately, the literature contains few models that aid a manager in this decision process. In this paper we design a model to evaluate and compare various strategic alternatives along the focused factory‐vertical integration continuum. By defining a point along this continuum as the percent of components manufactured internally that are needed to make one finished item (where 0 indicates complete focus and one manufacturing step, and 1 indicates full integration and 100 percent internal manufacturing) we are able to delineate the effects of the alternative decision strategies on flexibility and the firm's cash flow. The capital asset pricing model is invoked to assess the impact on the firm's risk and value.
Scheduling with Sequencing Flexibility*
Authors: Rachamadugu Ram , Nandkeolyar Udayan , Schriber Tom
Published: June 2007

This study examines the effects of sequencing flexibility on the performance of rules used to schedule operations in manufacturing systems. The findings show that taking advantage of even low levels of sequencing flexibility in the set of operations required to do a job results in substantial improvement in the performance of scheduling rules with respect to mean flowtime. Differences in the mean flowtime measure for various rules also diminish significantly with increasing sequencing flexibility. Performance improvements additionally result for such due‐date related performance measures as mean tardiness and the proportion of jobs tardy. At high levels of sequencing flexibility, some nonparametric scheduling rules outperform the shortest processing time rule in terms of the mean flowtime criterion. Rules based on job due dates also outperform rules based on operation milestones in terms of tardiness related criteria at high levels of sequencing flexibility. The implications of these findings for the design of manufacturing systems and product design are noted.
Patterns of Information Source Use Across Industrial Purchase Situations*
Authors: Bunn Michele D. , Clopton Stephen W.
Published: June 2007

An empirical taxonomy of industrial customers' information source use is developed based on a survey of 636 industrial customers across a wide range of different purchase situations. The taxonomy reveals five distinct information source mixes. Each mix consists of the combination of individual information sources used in a purchase situation. The five information source mixes are related to select underlying characteristics of purchase situations. The results indicate that the multivariate dimensions of purchase involvement, purchase complexity, and multiple influence are all significantly related to customers' choice of an information source mix. Implications of the taxonomy for marketing management and research are discussed.
An Investigation into the People‐Sequential Heuristic Method of Group Formation
Authors: Donohue Joan M. , Fox Jeremy B.
Published: June 2007

This study investigates the people‐sequential heuristic method of group formation as proposed by Beheshtian‐Ardekani and Mahmood [2] and examined by Muller [9]. Responding to Muller's call for continued research on this topic, we first replicate the seven hypothesis investigations presented in that study and then consider several additional hypotheses designed to more fully examine the value of the process to the group members themselves. The results of this study indicate that the balanced groups assignment method is not effective as a sole means of increasing learning or satisfaction with the project. Of the twelve hypothesized relationships, which, if supported, would favor the use of balanced groups over randomly assigned groups, only one was supported. These findings and their relationship to group learning theory are discussed.