bluuebunny/crossref_metadata_2025 huggingface dataset:
Sequencing Rules for Productivity Improvements in Underground Coal Mining*
Authors: Bernardo John J. , Gillenwater Edward
Published: June 2007

In this paper, we report on a unique two‐machine, dynamic sequencing problem that was involved in a project designed to improve the productivity of underground coal mining operations. It was discovered that mine output was dependent on the particular sequence of faces the continuous miner and bolter worked. The problem is characterized by two unique features. First, the problem is unique because of the geological and safety constraints that must be satisfied by the sequence. Second, the scheduling problem is dynamic because the available job sets change as work progresses, and the production times change as coal is mined. Three heuristic approaches were developed and tested using mine parameters. The best heuristic had a worst case scenario of being within 2.7 percent of the optimal sequence and only a 1.1 percent chance of determining a better sequence. This heuristic resulted in an 8.1 percent productivity improvement.
Feedback in DSS as a Source of Control: Experiments with the Timing of Feedback
Authors: Te'eni Dov
Published: June 2007

Well‐designed feedback can improve decision making but to date there has been no comprehensive study of feedback in decision support systems (DSS) that could guide developers in its design. This work examines the opportunities and means to enhance cognitive control in decision making by providing appropriate feedback with DSS. It concentrates on the timing of feedback, which has been shown to affect the use of feedback and also demonstrates the potential advantages of using information technology over and above manual decision environments. Two experiments test the effects of controlling the timing of cognitive feedback on the user's cognitive control. The first tests the effect of timing one source of cognitive feedback, and the second tests the effect of timing two sources of feedback. The findings suggest that the design of feedback should become a routine part of the development of DSS.
An Empirical Estimation of the Investor Loss Function Associated with the Use of Analysts' Forecasts of Earnings
Authors: McEwen Ruth Ann
Published: June 2007

The aggregate investor loss function associated with the use of analysts' forecasts of earnings expresses the relation between loss and prediction error. Prior research suggested that the shape of this loss function should provide guidance in decision rules for investors. This study empirically estimates the investor loss function and finds an asymmetry in the relation between loss and analysts' prediction error. For overestimates of earnings, loss is a quadratic function of error; while for underestimates of earnings, loss is a linear function of error.
Master Scheduling in Assemble‐To‐Order Environments: A Capacitated Multiobjective Lot‐Sizing Model
Authors: Lewis Holly S. , Sweigart James R. , Markland Robert E.
Published: June 2007

Basic characteristics of an assemble‐to‐order environment make effective master scheduling extremely difficult. Limited resource capacities and dynamic customer end‐item demand contribute to the complexity of the master production scheduling problem. To gain flexibility and responsiveness within this system, the master production schedule (MPS) focuses at the component level. This research proposes a master scheduling technique for manufactured components which combines a multiobjective capacitated multi‐item/multi‐stage lot‐sizing model with an interactive multiple objective optimization solution procedure. To evaluate the model's performance as a realistic and practical master scheduling tool, this study focuses on the National Cash Register (NCR) electronics manufacturing facility in Columbia, South Carolina.
Dynamic Group Scheduling Heuristics in a Flow‐through Cell Environment*
Authors: Mahmoodi Farzad , Tierney Edward J. , Mosier Charles T.
Published: June 2007

The increased use of cellular manufacturing configurations designed to grapple with increasing competitive pressures is providing manufacturing managers and engineers with a broad variety of operational challenges. Many questions concerning the best procedures and policies for the day‐to‐day operation of manufacturing cells are still unanswered. The primary objective of this study is to compare the performance of traditional single‐stage heuristics and the two‐stage group scheduling heuristics that have exhibited superior performance in previous studies in a flow‐through cell environment under a rigorous set of experimental conditions. Such a comparison is of great interest since each previous study has focused on proposing new heuristics and testing them against some particular baseline heuristic, often without comprehensive comparisons to the broad variety of previously proposed heuristics.

Two single‐stage heuristics and four two‐stage heuristics are examined under sixteen experimental conditions (four experimental factors at two levels each). The experimental factors examined are shop load, due date tightness, setup to run‐time ratio, and interarrival time distribution. Results vary by experimental condition and performance criteria, but in general, two‐stage heuristics outperformed single‐stage heuristics under all experimental conditions, as well as being relatively insensitive to changing experimental conditions. In addition, two of the two‐stage heuristics displayed superior performance on all performance measures under most experimental conditions. Finally, the results indicated that interarrival time distribution does have a major impact on the performance of scheduling heuristics.
An Experimental Comparison of Dispatching Rules for Field Service Support*
Authors: Hill Arthur V.
Published: June 2007

Field service repair management is increasing in importance as “high tech” machines such as computers, communication systems, and copy machines are becoming more popular and more widely disbursed geographically. Complicating the management of these systems are response time performance guarantees (e.g., 8‐hour response time), which are a popular marketing tool for many field service businesses [21]. These response time), guarantees especially complicate the field service dispatching problem. With response time guarantees, dispatchers must consider travel times and other issues to determine which call should be assigned to an available technician.

This research proposes several dispatching rules that might be applied for dispatching sequential‐trip technicians in this environment and compares these rules in a simulation experiment to determine which rule is best in terms of average tardiness. The proposed composite travel time‐expiration time rule was found to be the best on average tardiness performance and on all other tardiness‐related measures. Given the increased importance of tardiness performance in field service organizations, the proposed composite rule appears to have promise.
A Note on Discriminant Analysis Using LAD
Authors: Lau Kin‐nam , Post Gerald V.
Published: June 2007

Using a regression approach to discriminant analysis is often incorrect because it forces the use of a binary dependent variable which violates virtually any distributional assumption for a linear model. However, assuming a Laplace distribution in an LP framework leads to a theoretical foundation for MSD discriminant analysis.
A Decomposition Approximation for Periodic Kanban‐Controlled Flow Shops*
Authors: Berkley Blair J.
Published: June 2007

The kanban system is a pull method of production control in which the material‐handling operation between two stations is initiated by the downstream station. Most often, because of limited transportation resources, the physical distance separating workstations, or other factors, the material‐handling operation is performed periodically. The number of withdrawal kanbans must be set large enough to satisfy production requirements over the period between occurrences of the material‐handling operation‐the withdrawal cycle time. This paper presents a decomposition approximation for kanban‐controlled flow shops that explicitly considers the withdrawal cycle time. Several examples are given to show how the approximation method can be used to determine the required number of kanbans, the required withdrawal cycle time, or both.
Master Production Scheduling Under Rolling Planning Horizons with Fixed Order Intervals
Authors: Campbell Gerard M.
Published: June 2007

Fixed interval scheduling is studied in the context of a rolling horizon framework that is developed by building on previous work in the master scheduling area. The rolling horizon framework includes a stationary scheduling model which uses the “time fencing’concept by partitioning the planning horizon into three sections. The lengths of these sections and the frequency at which the stationary problem is updated and resolved are discussed as parameters of the rolling horizon model. Two different interpretations of the freeze interval parameter are examined, enabling confirmation and clarification of results presented in an earlier study. Details are given for three methods of calculating safety stocks as a function of rolling horizon parameters, including a method which results in optimal safety stock levels. A comparison of the safety stock methods shows that the constant safety stock method can result in inventories that are significantly above optimal under certain conditions, whereas the constant service level method consistently yields nearly optimal results.
Assembly Line Balancing with Resource Dependent Task Times*
Authors: Faaland Bruce H. , Klastorin Theodore D. , Schmitt Thomas G. , Shtub Avraham
Published: June 2007

Paced assembly lines are widely used in repetitive manufacturing applications. Most previous research on the design of paced lines has assumed that each task along the line can be performed by only one worker (or a fixed number of workers). In many cases, however, task duration times may be reduced by increasing the number of workers or changing the equipment assigned to work stations. Thus, the problem becomes one of assigning resource alternatives (e.g., workers and/or equipment) and tasks to work stations to minimize total cost for a desired production rate. For this problem, we present three procedures. The first formulates the problem as a shortest path problem and guarantees optimality. The second and third are heuristic adaptations of the shortest path procedure that are capable of solving large problems. The procedures are compared in terms of solution quality and computation time on a set of 128 randomly generated problems for which optimal solutions could be found. Our simulation results indicate that the choice of procedure depends on problem complexity and resource costs.
Setup Reduction in the Economic Production Quantity Model
Authors: Kim Seung Lae , Hayya Jack C. , Hong Jae‐Dong
Published: June 2007

We present an analysis of setup cost reduction using the economic production quantity model. The objectives of the paper are to draw conclusions by investigating several classes of setup reduction functions and to provide a general solution procedure. We examine the trade‐offs between reduced inventories and increased capital investment and show that given any hypothetical setup cost reduction function, we can determine whether the total relevant cost can be reduced and how the reduction is achieved.
Fundamental Insights into Part Family Scheduling: The Single Machine Case
Authors: Wemmerlöv Urban
Published: June 2007

A simulation study was conducted to investigate the behavior of family scheduling procedures in a dynamic dispatching environment. Two scheduling rules that incorporate setup avoidance mechanisms (FCFS‐F and SPT‐F) and two that do not (FCFS and SPT) were applied to a single machine. The scheduling environment was varied by controlling several important factors: the machine utilization, the number of setup configurations (families), the size of the family setup times relative to the job run times, the frequency by which members of the part families were released for processing, and the distribution of job interarrival and job run times.

The major results from the study are the following: (1) The degree of stability in the system is the most influential factor with respect to mean flow time and flow time variance. Under low variance service and interarrival time distributions, the impact of scheduling rule selection is minor. (2) Conversely, under unstable scheduling situations, family scheduling procedures can have a substantial impact. (3) Clear interaction effects are noticed between all factors. The environment most conducive to family scheduling is characterized by high resource utilization, low setup‐to‐run time ratio, few part families, and erratic job arrivals. (4) Under conditions favorable to family scheduling, setup avoiding procedures can be used to increase output while at the same time reduce the mean and variance of flow time. (5) The shortest processing time rule (SPT) performs well with respect to mean flow time when relative setup times are small. Overall, however, SPT‐F generates the lowest mean flow time while FCFS‐F produces the lowest flow time variance.

This study shows that scheduling procedures that consider setups in their structure can outperform rules that do not under many different operating conditions. However, the magnitude of this advantage very much depends on the scheduling environment. The results also highlight the fact that it may be better to try to reshape the manufacturing environment than worry about selecting the correct scheduling rule. If the environment cannot be stabilized, then the choice of a setup avoiding procedure, allocation of families to machines, and setup reduction become important issues.
Heuristic Estimation of the Efficient Frontier for a Bi‐Criteria Scheduling Problem
Authors: De Prabuddha , Ghosh Jay B. , Wells Charles E.
Published: June 2007

We examine a single‐machine scheduling problem where the objective is to minimize the mean and the variance of the job completion times simultaneously. We seek to identify the efficient frontier which is obtained by parametrically solving a weighted combination of the two criteria. The identification of the true efficient frontier for this problem is notoriously difficult. To estimate the frontier, we propose a heuristic procedure which is quite general and can be applied to other bi‐criteria problems as well. It involves repeated applications of a relatively new technique called beam search in an adaptive manner. To evaluate the proposed procedure, we introduce two measures of performance and conduct a computational study. The results of the study indicate that the procedure is highly effective.
Modelling the Telecommunication Pricing Decision
Authors: Brown Kate , Norgaard Richard
Published: June 2007

The local telecommunication pricing decision on residential, business, and private lines is modeled. This study demonstrates that when regulators use a weighted sum linear goal programming model to determine prices, adjustments can be made to Ramsey prices that reflect the regulators’ concerns about the trade‐off of fairness with efficiency. An actual example shows that when regulators’ preferences were taken into account, residential prices were 14 percent lower than efficient optimal Ramsey prices.
Simultaneous Determination of Joint Product Cost Allocations and Cost‐Plus Prices*
Authors: Cheng C. S. Agnes , Liao Woody M.
Published: June 2007

Use of the net realizable value approach for joint manufacturing cost allocations requires knowledge of selling prices of joint products. However, joint product selling prices themselves are functions of the allocated costs under a cost‐plus pricing policy. In this case, it is necessary to determine joint cost allocations and joint product prices simultaneously. This paper applies a nonlinear programming (NLP) approach to simultaneously determine the optimal joint production decision, joint product cost‐plus prices, and joint cost allocations using the net realizable value method. The NLP solution provides not only the optimal joint production and pricing decisions, but also the necessary conditions for such optimal decisions.
Neural Networks: A New Tool for Predicting Thrift Failures*
Authors: Salchenberger Linda M. , Cinar E. Mine , Lash Nicholas A.
Published: June 2007

A neural network model that processes input data consisting of financial ratios is developed to predict the financial health of thrift institutions. The network's ability to discriminate between healthy and failed institutions is compared to a traditional statistical model. The differences and similarities in the two modelling approaches are discussed. The neural network, which uses the same financial data, requires fewer assumptions, achieves a higher degree of prediction accuracy, and is more robust.
Burn‐in Time and Estimation of Change‐Point with Weibull‐Exponential Mixture Distribution*
Authors: Chou Kuocheng , Tang Kwei
Published: June 2007

Many industrial products have three phases in their product lives: infant‐mortality, normal, and wear‐out phases. In the infant‐mortality phase, the failure rate is high, but decreasing; in the normal phase, the failure rate remains constant; and in the wear‐out phase, the failure rate is increasing. A burn‐in procedure may be used to reduce early failures before shipping a product to consumers. A cost model is formulated to find the optimal burn‐in time, which minimizes the expected sum of manufacturing cost, burn‐in cost, and warranty cost incurred by failed items found during the warranty period. A mixture of Weibull hyperexponential distribution with shape parameter less than one and exponential distribution is used to describe the infant‐mortality and the normal phases of the product life. The product under consideration can be either repairable or non‐repairable. When the change‐point of the product life distribution is unknown, it is estimated by using the maximum‐likelihood estimation method. The effects of sample size on estimation error and the performance of the model are studied, and a sensitivity analysis is performed to study the effects of several parameters of the W‐E distribution and costs on the optimal burn‐in time.
Management Policies to Improve the Effectiveness of Multi‐Station Service Organizations*
Authors: Clark Thomas D. , Hammond Donald H. , Cossick Kathy L.
Published: June 2007

A SLAM based simulation model of a multi‐station, tandem queuing structure characteristic of a variety of service systems is employed to test various design options for the system. The model is based on an extensive study of the State of Florida driver licensing offices. The multiple objectives of low time in the system for customers and the efficient use of personnel resources are employed to measure the benefits of policy options. The use of simulation analysis permits the incorporation of complex system characteristics, therefore providing a realistic representation of the effects of possible management actions. Effective methods to control labor in such systems are suggested.
A Note on “An Efficient Zero‐One Formulation of the Multilevel Lot‐Sizing Problem”
Authors: Rajagopalan S.
Published: June 2007

In a recent paper, McKnew, Saydam, and Coleman [3] presented a novel zero‐one integer programming formulation of the multilevel dynamic, deterministic lot‐sizing problem in assembly systems. They stated that “the relaxed linear programming solution to this formulation will always be integer’ [3, p. 280] since the constraint matrix is totally unimodular. In this note, we point out that the constraint matrix is not totally unimodular and therefore the authors’claim that a linear relaxation of the zero‐one integer formulation always yields an integer solution is not true.
On the Sequential Selection Problem*
Authors: Chun Young Hak , Platt Marjorie
Published: June 2007

Kwan and Yuan [13] considered the sequential selection problem in which an employer should arrange the sequence of interviews with job applicants to fill a position. In this note, it is shown that their selection problem would be alternately interpreted as an optimal search problem or, more specifically, a discrete search problem with a stationary target. A more generalized version of the ordering problem is proposed which explicitly considers the time value of money. Also, the optimality of the ordering strategy in the generalized problem is proven by the pair‐wise exchange method, which is simpler than the induction hypothesis‐based proof. The sequention selection problem is shown to be a special case of the general ordering problem where the discount rate is zero.
The Emergence of Artificial Intelligence as a Reference Discipline for Decision Support Systems Research
Authors: Goul Michael , Henderson John C. , Tonge Fred M.
Published: June 2007

It is timely and appropriate to examine both philosophical and pragmatical issues associated with formalizing the adoption of artificial intelligence as a reference discipline for decision support systems research. This paper reflects on where we were when the first special issue of Decision Sciences on expert systems and decision support systems was published, addresses the dynamics of what has taken place subsequent to the publication of that first special issue, sets forth a proposition to stimulate ongoing dialog with respect to synergies between the decision support system research agenda and the research agenda of the artificial intelligence discipline, and demonstrates how the papers appearing in this follow‐up special issue of Decision Sciences are representative of an emerging, challenging, and exciting new decision support systems era.
A Prototype Expert Decision Support System for the Market Appraisal of the Single Family Residence
Authors: Moore James S.
Published: June 2007

The assessment of the current market value of residential property is a potential source of anxiety for the typical homeowner. Common criticisms of the existing appraisal process include excessive subjectivity and inconsistency across properties and through time. This paper examines the nature of decision support required for valuation decisions and the appropriateness of applying expert system technologies to evaluate the recoverable value of the single‐family residence. The expert system approach allows for the integration of the qualitative and quantitative aspects of appraisal, while introducing the beneficial dimensions of increased objectivity, comprehensiveness, and consistency. A prototype expert system is offered that enables the end user to conduct a market analysis of a subject property. Unlike most expert system applications that seek a diagnostic or classification response, this study explores a numerical intent for the system, in a decision‐making environment that is traditionally viewed as highly judgmental. The system's early validation results show promise of proving effective as such an evaluation aid.
An Interactive Framework for Multi‐Person, Multiobjective Decisions
Authors: Lewis Holly S. , Butler Timothy W.
Published: June 2007

Group decision making in the presence of multiple conflicting objectives is complex and difficult. This paper describes and evaluates an iterative technique to facilitate multiple objective decision making by multiple decision makers. The proposed method augments an interactive multiobjective optimization procedure with a preference ranking tool and a consensus ranking heuristic. Two multiple objective linear programming (MOLP) solution approaches, the SIMOLP method of Reeves and Franz [39] and the interactive weighted Tchebycheff procedure of Steuer and Choo [49], are recommended optimization strategies to be used independently or in concert. Computational experience suggests that the proposed framework is an effective decision‐making tool. The procedure quickly located excellent compromise solutions in a series of test problems with hypothetical decision makers. In addition, human decision makers gave positive evaluations of the procedure and the production plans the procedure provided for a resource allocation case problem.
Toward an Understanding of the Factors Affecting the Quality of the Audit Process*
Authors: Sutton Steve G.
Published: June 2007

The accounting profession has faced increasing pressure from external parties to monitor and improve the quality of the audit process. Similar to other service oriented industries, the accounting profession's ability to meet these pressures has been hampered by the lack of an objective means by which to evaluate process quality. In this research, groups of experienced auditors from two international accounting firms were used to develop and validate a set of key factors influencing the quality of the audit process and a corresponding set of measures for evaluating audit quality. The results support the belief that there exists a consensus among experienced auditors on a set of key audit quality factors which have a significant impact on overall audit quality. The results obtained go beyond those in prior audit quality research, in that the factors identified cover a broader scope and recognize the significant effect of the audit environment on process quality. The consistency between groups in the profession provides support for further use of the nominal group techniques in developing quality measures for processes in other service sector areas.
Determining Differences in Expert Judgment: Implications for Knowledge Acquisition and Validation*
Authors: O'Leary Daniel E.
Published: June 2007

In knowledge acquisition, it is often desirable to aggregate the judgments of multiple experts into a single system. In some cases this takes the form of averaging the judgments of those experts. In these situations it is desirable to determine if the experts have different views of the world before their individual judgments are aggregated. In validation, multiple experts often are employed to compare the performance of expert systems and other human actors. Often those judgments are then averaged to establish performance quality of the expert system. An important part of the comparison process should be determining if the experts have a similar view of the world. If the experts do not have similar views, their evaluations of performance may differ, resulting in a meaningless average performance measure. Alternatively, if all the validating experts do have similar views of the world then the validation process may result in paradigm myopia.
Fuzzy vs. Minmax Weighted Multiobjective Linear Programming Illustrative Comparisons
Authors: Martinson Frederick K.
Published: June 2007

This paper compares two approaches to the solution of weighted multiobjective linear programming problems: the fuzzy linear programming method and the minmax distance metric. The two models produce an identical solution for equally weighted objectives, but the solutions differ when the objectives are unequally weighted. This is due to the underlying meaning of the weights attached to each solution method. The paper illustrates the graphical meaning of the weights and the implications to the decision maker.
Two‐Group Classification Using Neural Networks*
Authors: Patuwo Eddy , Hu Michael Y. , Hung Ming S.
Published: June 2007

Artificial neural networks are new methods for classification. We investigate two important issues in building neural network models; network architecture and size of training samples. Experiments were designed and carried out on two‐group classification problems to find answers to these model building questions. The first experiment deals with selection of architecture and sample size for different classification problems. Results show that choice of architecture and choice of sample size depend on the objective: to maximize the classification rate of training samples, or to maximize the generalizability of neural networks. The second experiment compares neural network models with classical models such as linear discriminant analysis and quadratic discriminant analysis, and nonparametric methods such as k‐nearest‐neighbor and linear programming. Results show that neural networks are comparable to, if not better than, these other methods in terms of classification rates in the training samples but not in the test samples.
Heuristic Procedures for Practical‐Sized Uncapacitated Location‐Capacitated Routing Problems*
Authors: Chien T. William
Published: June 2007

Facility location and vehicle routing are two important logistical problems closely interrelated in many real‐world applications where locating facilities and determining the associated multi‐stop vehicle routes are required simultaneously. Previous research has found that using the classical facility location models on these location‐routing problems (LRPs) may lead to suboptimal solutions. We propose an approximate approach for the LRPs, which first generates and improves feasible location/allocation schemes with the associated multi‐stop routing costs approximated using some route length estimators. We then design the minimum‐cost routes based on the location/allocation results. We review two estimators that can provide accurate approximations to the multi‐stop route distances; define the uncapacitated location‐capacitated routing problem; and evaluate several heuristic procedures for approximately solving the problem. Computational results show that when vehicle capacities are not too restrictive, the sequential procedures that incorporate the two robust route length estimators can produce good solutions to practical‐sized problems with a reasonable amount of computational efforts.
Analyzing and Modeling the Maximum Diversity Problem by Zero‐One Programming*
Authors: Kuo Ching‐Chung , Glover Fred , Dhir Krishna S.
Published: June 2007

The problem of maximizing diversity deals with selecting a set of elements from some larger collection such that the selected elements exhibit the greatest variety of characteristics. A new model is proposed in which the concept of diversity is quantifiable and measurable. A quadratic zero‐one model is formulated for diversity maximization. Based upon the formulation, it is shown that the maximum diversity problem is NP‐hard. Two equivalent linear integer programs are then presented that offer progressively greater computational efficiency. Another formulation is also introduced which involves a different diversity objective. An example is given to illustrate how additional considerations can be incorporated into the maximum diversity model.
The Contingent‐Claims Approach to Investment Decisions*
Authors: Chung Kee H.
Published: June 2007

This paper presents a contingent‐claims approach to project valuation when capital expenditures are made sequentially over time. It focuses on an important facet of sequential investment projects that the firm can undertake—or pass up projects—as more information becomes available. The contingent‐claims approach takes account of this important feature of firms' investment decision process, whereas the traditional capital budgeting procedure does not. Since the traditional method does not reflect the options nature of investment opportunities, it underestimates the value of sequential investment projects. As a result, a naive implementation of the traditional capital budgeting procedure could result in rejecting profitable projects. The extent of undervaluation associated with the traditional capital budgeting procedure is greater when the correlation between the random component of the future asset value and that of the required capital expenditure is smaller and/or when the growth rate of the required capital expenditure is higher.
Necessary and Sufficient Conditions of Unacceptable Solutions in LP Discriminant Analysis*
Authors: Xiao Baichun
Published: June 2007

Characterization of unacceptable solutions for linear programming (LP) discriminant models have been discussed in the literature and the results presented so far are not satisfactory. This paper establishes necessary and sufficient conditions of unacceptable solutions for a number of LP models, addresses the practical implications of these conditions, and discusses the relationship between unacceptable solutions and multiple solutions.
Assessing Service Level Targets in Production and Inventory Planning*
Authors: Greis Noel P.
Published: June 2007

In production and stock planning, the relationship between customer service, defined as the ability to meet demand for finished goods from in‐stock inventory, and expected profits or expected costs can be represented by a simple reliability curve. The shape of this curve depends upon the parameters of the demand process, specifically the expected level of demand, standard deviation and correlation structure, as well as upon the capacities and initial state of the production and inventory system. A model is presented which explicitly determines this trade‐off curve for a firm. The model is intended both as an operational model to aid managers in setting revenue and service targets which are compatible with the capacities and resources of the firm, and as a tool for exploring relationships between the parameters of the demand process and the constraints of the physical production and inventory system. The results illustrate that the level of risk depends strongly on the variability of the demand process, the cost structure, the capacities and initial state of the system and, to a lesser extent, the correlation in demand between succeeding periods. Results suggest that establishing service level targets consistent with the firm's strategic orientation must be done in consideration of both the characteristics of the demand process and the capacities of the production and inventory system. The model provides a tool for estimating the premium above unit cost which must be paid to provide a designated service level.
User Perceptions of Decision Support Effectiveness: Two Production Planning Experiments*
Authors: Davis Fred D. , Kottemann Jeffrey E.
Published: June 2007

Decision support systems continue to be very popular in business, despite mixed research evidence as to their effectiveness. We hypothesize that what‐if analysis, a prominent feature of most decision support systems, creates an “illusion of control” causing users to overestimate its effectiveness. Two experiments involving a production planning task are reported which examine decision makers' perceptions of the effectiveness of what‐if analysis relative to the alternatives of unaided decision making, and quantitative decision rules. Experiment 1 found that almost all subjects believed what‐if analysis was superior to unaided decision making, although using what‐if analysis had no significant effect on performance. Experiment 2 found that decision makers were indifferent between what‐if analysis and a quantitative decision rule which, if used, would have led to significant cost savings. Thus, what‐if analysis did create an illusion of control: decision makers perceived performance differences where none existed, and did not detect large differences when they were present. In both experiments, decision makers exhibited difficulty realizing that their positive beliefs about what‐if analysis were exaggerated. Such misjudgments could lead people to continue using what‐if analysis even when it is not beneficial and to avoid potentially superior decision support technologies.
The Application of Neural Networks and a Qualitative Response Model to the Auditor's Going Concern Uncertainty Decision*
Authors: Lenard Mary Jane , Alam Pervaiz , Madey Gregory R.
Published: June 2007

An auditor gives a going concern uncertainty opinion when the client company is at risk of failure or exhibits other signs of distress that threaten its ability to continue as a going concern. The decision to issue a going concern opinion is an unstructured task that requires the use of the auditor's judgment. In cases where judgment is required, the auditor may benefit from the use of statistical analysis or other forms of decision models to support the final decision. This study uses the generalized reduced gradient (GRG2) optimizer for neural network learning, a backpropagation neural network, and a logit model to predict which firms would receive audit reports reflecting a going concern uncertainty modification. The GRG2 optimizer has previously been used as a more efficient optimizer for solving business problems. The neural network model formulated using GRG2 has the highest prediction accuracy of 95 percent. It performs best when tested with a small number of variables on a group of data sets, each containing 70 observations. While the logit procedure fails to converge when using our eight variable model, the GRG2 based neural network analysis provides consistent results using either eight or four variable models. The GRG2 based neural network is proposed as a robust alternative model for auditors to support their assessment of going concern uncertainty affecting the client company.
An Industrial Ocean‐Cargo Shipping Problem
Authors: Mehrez Abraham , Hung Ming S. , Ahn Byung H.
Published: June 2007

This paper reports the modeling and solution of an industrial ocean‐cargo shipping problem. The problem involves the delivery of bulk products from an overseas port to transshipment ports on the Atlantic Coast, and then over land to customers. The decisions made include the number and the size of ships to charter in each time period during the planning horizon, the number and location of transshipment ports to use, and transportation from ports to customers. The complexity of this problem is compounded by the cost structure, which includes fixed charges in both ship charters and port operations. Such a large scale, dynamic, and stochastic problem is reduced to a solvable stationary, deterministic, and cyclical model. The process of modeling the problem and the solution of the resultant mixed integer program are described in detail. Recommendations from this study have been implemented.
A Two‐Period Repeated Game Advertising Investment Model for Oligopolistic Markets with an Application to the Beer Industry*
Authors: Chintagunta Pradeep K. , Vilcassim Naufel J.
Published: June 2007

This paper proposes a simple analytical model of advertising competition in oligopoly markets. The widely used log‐log sales response function underlies the model specification. Advertising carryover effects are assumed to persist for one period following the period in which the expenditure occurs. Firms are assumed to be engaged in a repeated competitive game in which in every period advertising levels are set such that they maximize current and next period (i.e., two‐period) profits. A Nash equilibrium solution is sought for the game. Compared with previous empirical studies of advertising competition in a game theoretic framework, the proposed model offers the following advantages: (1) oligopoly, not duopoly, markets are analyzed; (2) industry sales is allowed to vary over time as a function of advertising expenditures; (3) non‐zero discount rates are used for the players. An empirical application is provided using data from the beer market on sales and advertising expenditures of Anheuser‐Busch and Miller Brewing. Comparisons are provided with policies that ignore the dependence of next period profits on current advertising levels, reaction function strategies and spending levels obtained from a market share game. Extension of the model formulation to multiple marketing instruments is briefly discussed.
The Impact of Quality Management Practices on Performance and Competitive Advantage
Authors: Flynn Barbara B. , Schroeder Roger G. , Sakakibara Sadao
Published: June 2007

As decision makers become more involved in implementing Total Quality Management, questions are raised about which management practices should be emphasized. In this exploratory investigation of the relationship of specific quality management practices to quality performance, a framework was constructed. It focuses on both core quality management practices and on the infrastructure that creates an environment supportive of their use. In addition, it incorporates two measures of quality performance and their role in establishing and sustaining a competitive advantage.

Path analysis was used to test the proposed model, with multiple regression analysis determining the path coefficients, which were decomposed into their various effects. Weak linkages were eliminated. The trimmed model indicated that perceived quality market outcomes were primarily related to statistical control/feedback and the product design process, while the internal measure of percent that passed final inspection without requiring rework was strongly related to process flow management and to statistical control/feedback, to a lesser extent. Both measures of quality performance were related to competitive advantage. Important infrastructure components included top management support and workforce management. Supplier relationships and work attitudes were also related to some of the core quality practices and quality performance measures.

The results were interpreted in light of Hill's concept of order winners and order qualifiers and Garvin's eight dimensions of quality. They indicate that different core quality management practices lead to success in different dimensions of quality, and that those dimensions function differently as order winners and order qualifiers.
Specifying Critical Inputs in a Genetic Algorithm‐driven Decision Support System: An Automated Facility*
Authors: Pakath Ramakrishnan , Zaveri Jigish S.
Published: June 2007

We present a simple scheme for the automated, iterative specification of the genetic mutation, crossover, and reproduction (usage) probabilities during run time for a specific genetic algorithm‐driven tool. The tool is intended for supporting static scheduling decisions in flexible manufacturing systems. Using a randomly generated (base) test problem instance, we first assess the method by using it to determine the appropriate levels for specific types of mutation and crossover operators. The level for the third operator, reproduction, may then be inferred. We next report on its ability to choose one or more appropriate crossovers from a set of many such operators. Finally, we compare the method's performance with that of approaches suggested in prior research for the base problem and a number of other test problems. Our experimental findings within the specific scheduling domain studied suggest that the simple method could potentially be a valuable addition to any genetic algorithmbased decision support tool. It is, therefore, worthy of additional investigations.
Identification of the Critical Factors of TQM*
Authors: Black Simon A. , Porter Leslie J.
Published: June 2007

Current concepts in the field of Total Quality Management (TQM) are largely based upon case studies, anecdotal evidence and the prescriptions of leading “gurus.” Consequently, there is little consensus on which factors are critical to the success of the approach. Few attempts have been made to scientifically synthesise frameworks for measuring quality management practices, and a methodology for examining the issue has yet to be established. This has meant that current TQM models, such as the Malcolm Baldrige Award, have not been constructed or validated by empirical means. This paper presents a research methodology that can be used to improve self‐assessment frameworks, such as the Baldrige Award, to better inform organisations in the development of Total Quality Systems.

The research extracts a series of items from the Baldrige model and established literature. These items formed the basis of a questionnaire sent to over 200 managers. Data was examined using several well‐established analytical techniques that identified 10 critical factors of TQM. These factors were shown to be reliable and valid, and offer new insights into our understanding of TQM.
Development and Validation of TQM Implementation Constructs
Authors: Ahire Sanjay L. , Golhar Damodar Y. , Waller Matthew A.
Published: June 2007

The contemporary quality management (QM) literature prescribes various quality improvement strategies. However, it lacks scientifically developed and tested constructs that represent an integrative QM philosophy. Moreover, an impact of the prescribed QM strategies on a firm's product quality has not been analyzed. Through a detailed analysis of the literature, this research identifies 12 constructs of integrated QM strategies. Using a survey of 371 manufacturing firms, the constructs are then empirically tested and validated. LISREL 7 is used for this purpose. Finally, a framework to examine the effects of integrated QM strategies on a firm's product quality is suggested. Comparisons between this and two other comprehensive scales of TQM are made.
Measuring Productivity of Software Projects: A Data Envelopment Analysis Approach
Authors: Mahmood M. Adam , Pettingell Karen J. , Shaskevich Alexander I.
Published: June 2007

Current economic conditions are forcing information system departments to focus simultaneously on decreasing costs while increasing software productivity. Improving software productivity is becoming critical because software costs of large in‐house software companies have been increasing rapidly. For many organizations, however, measuring software productivity has been a difficult task. Using Data Envelopment Analysis (DEA), this research study investigates the productivity of 78 commercial system projects. The results of this study have practical implications for software project managers undertaking software development. The results showed that the DEA technology can be successfully used to identify efficient and inefficient software projects. Furthermore, within the inefficient group, DEA can also identify factors that affect software productivity in a positive or negative manner, allowing managers to take corrective actions. Based on the findings of this study, the manuscript also provides some practical guidelines for managers to follow in software development.
Tandem Configuration Automated Guided Vehicle Systems: A Comparative Study*
Authors: Ross Edward A. , Mahmoodi Farzad , Mosier Charles T.
Published: June 2007

Automated guided vehicle (AGV) systems provide the flexibility and integration required for flexible manufacturing systems. Previous AGV system studies have attempted to reduce the controlling complexities commonly encountered in these systems. However, this has not been accomplished without additional resources (e.g., automated guided vehicles) and lower system flexibility. The primary objective of this study is to compare the performance of AGV system configurations that reduce controlling and modification complexities (i.e., tandem configurations) to traditional AGV system configuration. Three AGV system configurations were tested under 16 experimental conditions. Performance metrics considered were AGV utilization, mean flowtime, mean tardiness, and percent tardy. The results of this study extend the findings of the previous studies in demonstrating the viability of tandem configurations, in that the tandem configurations match the performance of traditional configuration across all performance metrics, without sacrificing ease of control and system flexibility. Finally, the cost tradeoffs inherent in selecting a particular configuration are discussed.