bluuebunny/crossref_metadata_2025 huggingface dataset:
An Empirical Investigation of Information Search Strategies with Implications for Decision Support System Design
Authors: Cook Gary J.
Published: June 2007

Understanding how people search through and combine information before making decisions is an important concern in the study of decision making and in the design of decision support systems (DSS). The purpose of this study is to examine DSS search strategies in relation to the body of empirical research on information load. Prior research is examined in relation to basic empirically‐testable hypotheses and compared to the results of this study as a way of validating the procedures used here. The transfer of information load empirical research to a DSS scenario is confirmed statistically. Then, results of an analysis of information search patterns under DSS conditions are described. Finally, implications for DSS design are discussed in terms of possible search support mechanisms for specific search strategies.
An Arborescent Network Formulation and Dual Ascent Based Procedure for the Two‐Stage Multi‐Item Dynamic Demand Lotsize Problem
Authors: Gao Li‐Lian , Robinson E. Powell
Published: June 2007

Traditional approaches for modeling and solving dynamic demand lotsize problems are based on Zangwill's single‐source network and dynamic programming algorithms. In this paper, we propose an arborescent fixed‐charge network (ARBNET) programming model and dual ascent based branch‐and‐bound procedure for the two‐stage multi‐item dynamic demand lotsize problem. Computational results show that the new approach is significantly more efficient than earlier solution strategies. The largest set of problems that could be solved using dynamic programming contained 4 end items and 12 time periods, and required 475.38 CPU seconds per problem. The dual ascent algorithms averaged .06 CPU seconds for this problem set, and problems with 30 end items and 24 time periods were solved in 85.65 CPU seconds. Similar results verify the superiority of the new approach for handling backlogged demand. An additional advantage of the algorithm is the availability of a feasible solution, with a known worst‐case optimality gap, throughout the problem‐solving process.
An Examination of IT Planning in a Large, Diversified Public Organization*
Authors: Byrd Terry Anthony , Sambamurthy V. , Zmud Robert W.
Published: June 2007

The conduct of information technology (IT) planning processes has been of dominant managerial concern in public and private organizations. Yet, current IT planning research offers little guidance on the types of planning actions and behaviors that are appropriate to organizational contexts. We focus on the conduct of the IT planning process by describing an exploratory research project. The project empirically examined a number of issues associated with managing IT planning within a single large public enterprise, particularly identifying actions and behaviors related to producing quality IT plans.

The results of the study yield some useful set of guidelines; most interesting is the importance of building IT infrastructure based on IT sophistication and innovativeness for large agencies to improve plan quality. Other recommendations include having a focused, balanced technology and business planning orientation that incorporates a strategic outlook, support of top management, attention to business planning, and early consensus among planning members.
Decisions to Outsource Information Systems Functions: Testing a Strategy‐Theoretic Discrepancy Model
Authors: Teng James T. C. , Cheon Myun Joong , Grover Varun
Published: June 2007

In recent years, the decision to outsource information systems (IS) functions has become a viable strategic alternative in managing the increasingly complex IS functions. In this study, the IS outsourcing phenomenon is conceptualized as a strategic decision in the organization. Drawing on resource‐based theories, resource dependence theories, and other theories of strategic management, a discrepancy model of this decision is developed. Relationships between a number of strategy‐theoretic factors and the IS outsourcing decision are hypothesized. These factors include IS resource performance discrepancies manifested in the form of gaps in information quality, IS support quality, IS cost effectiveness and financial performance, as well as the strategic orientation of the firm. Results of the study indicate that, while cost consideration and the firm's financial performance are not associated with the IS outsourcing decision, difficulties in providing good information outputs and IS support services are associated with the decision. Overall, the findings suggest that the current trend toward outsourcing represents a continuing evolution of the IS function as it attempts to fulfill its traditional mission of providing high quality information resource to the firm. When the performance of the delivered resource begins to slip in the current environment of rising expectation and technological complexity, outsourcing may become a strategic response of necessity. The paper concludes with a discussion of the implications of the results for practicing managers and suggestions for future research.
Combining Neural Networks and Statistical Predictions to Solve the Classification Problem in Discriminant Analysis*
Authors: Markham Ina S. , Ragsdale Cliff T.
Published: June 2007

A number of recent studies have compared the performance of neural networks (NNs) to a variety of statistical techniques for the classification problem in discriminant analysis. The empirical results of these comparative studies indicate that while NNs often outperform the more traditional statistical approaches to classification, this is not always the case. Thus, decision makers interested in solving classification problems are left in a quandary as to what tool to use on a particular data set. We present a new approach to solving classification problems by combining the predictions of a well‐known statistical tool with those of an NN to create composite predictions that are more accurate than either of the individual techniques used in isolation.
Artificial Neural Network Models for Pricing Initial Public Offerings
Authors: Jain Bharat A. , Nag Barin N.
Published: June 2007

In recent times, managerial applications of neural networks, especially in the area of financial services, has received considerable attention. In this paper, neural network models are developed for a new application: the pricing of Initial Public Offerings (IPOs). Previous empirical studies provide consistent evidence of considerable inefficiency in the pricing of new issues. Neural network models using publicly available financial data as inputs are developed to price IPOs. The pricing performance and the economic benefits of the neural network models are evaluated. Significant economic gains are documented with neural networks. Several tests to establish generalizability and robustness of the results are conducted.
Incorporating Price and Replacement Purchases in New Product Diffusion Models for Consumer Durables*
Authors: Mesak Hani I. , Berg William D.
Published: June 2007

The article presents theoretical and empirical research findings which incorporate price and replacement purchases in new product diffusion models. On the theoretical side, this paper characterizes, qualitatively, optimum pricing policies for new products. Possible entry of rivals is not considered, but repeat sales, cost learning dynamics and discounting of future profit streams are allowed. Theoretical research findings suggest that the inclusion of repeat purchases in the diffusion model significantly changes the derived optimal pricing policy even if replacements were not price dependent. On the empirical side, alternative first purchase and repeat purchase models have been estimated and compared using nonlinear procedures. The diffusion data analyzed is related to nine consumer durables. Empirical research findings suggest that, for the considered product categories, diffusion is basically an imitative process, price can affect first and replacement purchases, and unit production cost is a decreasing function of cumulative first purchases. Managerial implications of the research findings are also discussed.
Global Measures of Information Service Quality: A Cross‐National Study*
Authors: Kettinger William J. , Lee Choong C. , Lee Sunro
Published: June 2007

Maintaining consistently high quality information services (IS) is a powerful means of increasing the overall efficiency and effectiveness of a global enterprise. This study introduces a global Information Services Function (ISF) Quality Framework that outlines the importance of both behavioral and procedural dimensions in planning, implementing and evaluating global IS quality. Based on this framework, the study investigates the cross‐national psychometric properties of a behavioral measure of service quality in the IS context. Using a cross‐national survey of IS customers from Korea, Hong Kong, the United States and the Netherlands, perceived ISF service quality was measured using a service quality measure (SERVQUAL) to determine cultural affects. Based on confirmatory factor analysis, support was found for four of the original five SERVQUAL quality dimensions in the U.S.A. and the Netherlands. However, the same four‐dimensional measurement model did not fit the Hong Kong and Korean samples. Further factor analysis showed that the Hong Kong and Korean samples shared a somewhat similar factor structure that differs from the shared U.S.A. and Netherlands structure. These findings support previous research that has found an “Asian factor'’with differing definitions of IS Service quality. These findings suggest that the feasibility of standardized global ISF measurement depends heavily on the relative magnitude of cultural effects. Rather than merely applying the U.S.A. ISF/SERVQUAL measure, a localized version of the instrument may need to be developed that captures the unique nature of ISF service perceptions in internationally based subsidiaries or companies.
Bringing Japanese Continuous Improvement Approaches to U.S. Manufacturing: The Roles of Process Orientation and Communications*
Authors: Choi Thomas Y. , Liker Jeffrey K.
Published: June 2007

Continuous improvement (CI) has played a key role in Japan's quality management. U.S. companies have begun to adopt CI in recent years. This paper studies the implementation of CI in seven U.S. manufacturing companies. We view values as the core concept of culture that impacts CI effectiveness. Using both qualitative and quantitative data with a sample of seven companies, we observe empirically a relationship between process‐oriented values and CI effectiveness. We also find that communications involving workers is strongly associated with CI effectiveness. Finally, we find an association between process orientation and communication frequency, and argue that communications act as an intervening variable between process orientation and effectiveness.
A Comparative Analysis of Quality Practice in Manufacturing Firms in the U.S. and Taiwan*
Authors: Madu Christian N. , Kuei Chu‐hua , Lin Chinho
Published: June 2007

The aim of this paper is to determine if there is a causal relationship between multivariate constructs for quality (i.e., customer satisfaction, employee satisfaction, and employee service quality) and organizational performance. The presence of such relationships, as well as the identification of key indicators within each quality construct for different types of firms, are explored in this empirical study on the perceptions of middle managers in Taiwan and the United States.

The study found a significant causal relationship between the quality constructs and organizational performance. These relationships are different, however, for the four types of firms based on age and size. Also, within the same firm types, there are differences among countries. For example, for older firms, Taiwanese managers tend to perceive customer satisfaction as the most important quality construct in improving organizational performance, while U.S. managers tend to perceive employee satisfaction as the most important. For younger firms, U.S. managers perceive customer satisfaction as influencing organizational performance, while Taiwanese managers perceive both customer satisfaction and employee satisfaction as doing so.

A further breakdown of the quality constructs identified the key indicators within each construct that separates “better performers'’from “lesser performers'’in both countries for the four types of firms. These indicators are dissimilar, thus suggesting that focus on quality constructs may lead to improvements in organizational performance by focusing on different indicators in different environments. These results have implications for the adoption and implementation of quality practices in different countries.
A Path Analytic Model of a Theory of Quality Management Underlying the Deming Management Method: Preliminary Empirical Findings*
Authors: Anderson John C. , Rungtusanatham Manus , Schroeder Roger G. , Devaraj Sarvanan
Published: June 2007

Despite the impact that Deming and his 14 Points have had on the practice of quality management, empirical support for the effectiveness of the Deming Management Method has not advanced beyond the presentation of anecdotal, case‐study evidence. In part, this is because theory to guide the conduct of empirical research has not been available. Only recently has such a theory of quality management to describe and explain the effectiveness of the Deming Management Method been articulated in the literature.

This paper continues the journey of theory development; it reports the results of an exploratory empirical analysis of an articulated theory of quality management underlying the Deming Management Method. The constructs in the proposed theory are operationalized using measurement statements developed by the World‐Class Manufacturing research project team at the University of Minnesota and Iowa State University. Path analysis is applied to the World‐Class Manufacturing project data to explore the empirical strength of relationships advanced in the theory. The path analytic results provide support for several of the proposed relationships in the theory, and more importantly, suggest a number of new relationships which have not heretofore been proposed.
Manufacturing Strategy: Testing the Cumulative Model in a Multiple Country Context*
Authors: Noble Margaret A.
Published: June 2007

This study statistically tests the cumulative model for the building of manufacturing capabilities by comparing and contrasting the manufacturing strategies of 265 North. American, 129 European, and 167 Korean factories by region. The cumulative model suggests that better performing competitors build one manufacturing capability upon another in a sequential, cumulative fashion—starting first with quality, followed by dependability, delivery, cost efficiency, flexibility, and lastly, innovation.

The primary findings of this exploratory study are as follows: (1) the data yielded some evidence for the cumulative model, with the Korean data being the most supportive of the model; (2) North American, European, and Korean managers take different approaches to improved competitiveness; and (3) rather than focusing on one or two capabilities, better performing firms generally compete on the basis of multiple capabilities. That quality is not only at the base of the cumulative model but is often among the multiple capabilities shows the importance of quality management globally.
Consistency and Accuracy in Decision Aids: Experiments with Four Multiattribute Systems*
Authors: Olson David L. , Moshkovich Helen M. , Schellenberger R. , Mechitov Alexander I.
Published: June 2007

There have been a number of multiattribute decision aids developed to aid selection problems. Multiattribute value theory and the analytic hierarchy process are two commonly used techniques. Different systems can result in radically different conclusions if they inaccurately and inconsistently reflect the preference structure of decision makers, or if they are based on inappropriate theoretical models. This study examines the impact of the underlying theoretical model, the method in which preference information is elicited, and the structure of alternatives as influences on the results from using various decision aids. It was found that two systems based on the multiattribute value theory model were just as diverse in their conclusions as were results between AHP and the multiattribute value theory models. Therefore, accuracy of information reflecting decision maker preference is an important consideration. Feedback capable of assuring the decision maker that information provided is consistent is a necessary feature required of decision aids applied to selection problems. The study also found that the way in which information is elicited influenced the result more than did the underlying model. Exact numerical data for complex concepts such as attribute importance and alternative performance on attributes is not necessary, and elicitation procedures that are more natural for the user are likely to be more accurate.
The Accuracy of Cross‐Validation Results in Forecasting
Authors: Puelz Amy V. , Sobol Marion G.
Published: June 2007

The widespread use of regression analysis as a business forecasting tool and renewed interest in the use of cross‐validation to aid in regression model selection make it essential that decision makers fully understand methods of cross‐validation in forecasting, along with the advantages and limitations of such analysis. Only by fully understanding the process can managers accurately interpret the important implications of statistical cross‐validation results in their determination of the robustness of regression forecasting models. Through a multiple regression analysis of a large insurance company's customer database, the Herzberg equation for determining the criterion of validity [11] and analysis of samples of different size from the two regions covered by the database, we illustrate the use of statistical cross‐validation and test a set of factors hypothesized to be related to the statistical accuracy of validation. We find that increasing sample size will increase reliability. When the magnitude of population model differences is small, validation results are found to be unreliable, and increasing sample size has little or no effect on reliability. In addition, the relative fit of the model for the derivative sample and the validation sample has an impact on validation accuracy, and should be used as an indicator of when further analysis should be undertaken. Furthermore, we find that the probability distribution of the population independent variables has no effect on validation accuracy.
Understanding the Participation of Critical Task Specialists in Strategic Decision Making*
Authors: Ashmos Donde P. , McDaniel Reuben R.
Published: June 2007

This paper explores the role of critical task specialists in strategic decision making and presents a theoretical model relating critical task specialist participation in decision making to the organization's overall strategy and the nature of the decision. This exploratory study examines scope and intensity of physician participation in hospital decision making. Intensity of critical task specialist participation is explained by content of the decision and by the organization's strategy, while scope of participation is explained by decision content. The findings suggest the need for more complex models of participation than are normally used in decision‐making research. The findings also suggest that executives, in managing strategic decision‐making processes, should pay attention to questions of both scope and intensity of participation. The results suggest that critical task specialists play a different role in the decision process, depending on specific decision content and organization strategy.
The Nucleolus Strikes Back*
Authors: Carter Michael , Walker Paul
Published: June 2007

In a recent paper in Decision Sciences, Barton proposes the MTPD method for finding a unique solution for the nucleolus. We argue that the basis for the MTPD method is flawed because the nucleolus is always unique. Furthermore, the MTPD method is inconsistent and does not exhibit the properties desirable in a cost allocation method.
On the Rank‐Based Selection Strategy for the Group Interview Problem*
Authors: Chun Young H.
Published: June 2007

For the so‐called group interview problem in which several groups of choice alternatives are presented sequentially to the decision maker, the optimal selection strategy is derived that minimizes the expected rank of the selected choice or purchased product. For the case in which the sequence of groups can be rearranged by the decision maker, a simple heuristic procedure is proposed for obtaining a near‐optimal sequence of groups, and the performance of the heuristic procedure in a Monte Carlo simulation is accessed. According to the heuristic procedure, the consumer is advised to visit smaller stores first and then move to larger stores later to increase the likelihood of finding a better product. Finally, the optimal selection strategy and the heuristic procedure are compared with those proposed by Chun, Moskowitz, and Plante (1993) and the problem of locating a new store in an area where there are several competing stores is discussed. The optimal selection strategy and the heuristic procedure can be applied to many sequential decision problems such as the consumer search and purchase process.
A Sensitivity Analysis Approach for Some Deterministic Multi‐Criteria Decision‐Making Methods*
Authors: Triantaphyllou Evangelos , Sánchez Alfonso
Published: June 2007

Often, data in multi‐criteria decision making (MCDM) problems are imprecise and changeable. Therefore, an important step in many applications of MCDM is to perform a sensitivity analysis on the input data. This paper presents a methodology for performing a sensitivity analysis on the weights on the decision criteria and the performance values of the alternatives expressed in terms of the decision criteria. The proposed methodology is demonstrated on three widely used decision methods. These methods are the weighted sum model (WSM), the weighted product model (WPM), and the analytic hierarchy process (AHP). This paper formalizes a number of important issues on sensitivity analysis and derives some critical theoretical results. Also, a number of illustrative examples and computational experiments further illustrate the application of the proposed methodology.
Modeling Take‐or‐Pay Contract Decisions
Authors: Schultz Carl R.
Published: June 2007

Long‐term purchase contracts for natural resources, such as natural gas, often contain take‐or‐pay provisions that penalize the buyer for not purchasing (taking) a minimum quantity of output over some period of time. In some contracts for a limited time interval, known as the make‐up period, the penalty payments can be credited against future “takes” in excess of the take‐or‐pay level. Additionally, options to “buy down” or “buy out” existing contracts, or to initiate new contracts, may exist. The purchaser, faced with projected requirements over some planning horizon, must determine purchase levels from a selected set of take‐or‐pay contracts so as to minimize purchase, inventory holding, penalty costs, contract initiation, and buy‐out or buy‐down costs. This paper presents a mixed‐integer programming model of take‐or‐pay decisions with and without make‐up provisions.
Projecting Sample Misstatements to Audit Populations: Theoretical, Professional, and Empirical Considerations*
Authors: Wheeler Stephen , Dusenbury Richard , Reimers Jane
Published: June 2007

This paper examines the auditing decision to isolate or project errors found in sampling an audit population. The topic is interesting from both practical and theoretical viewpoints because prior research suggests that theory and practice are juxtaposed. Prior research has suggested a stringent theoretical norm in which few errors should be isolated and also suggests that, in practice, auditors commonly isolate errors that they perceive to be confined to a well‐defined subpopulation. We extend this research by using the professional auditing standards as a backdrop for the study of both theoretical and practical aspects of the projection‐isolation decision. As to theory, we show that a biased estimator (i.e., one that excludes errors known not to recur) may be more precise than an unbiased estimator under certain assumptions about sample sizes and the frequencies of errors in accounting populations. Using simulation, we specify conditions under which a biased estimator is more precise than an unbiased one. As to practice, we show that auditors rely on containment information when choosing to project, and we use verbal reports to develop a description of auditors' strategies for using containment information. Considering both the theoretical and practical aspects in light of professional standards, we conclude that, under specific conditions, isolation of sample misstatements is appropriate. Further investigation of the topic appears warranted.
Reexamining a Model for Evaluating Information Center Success Using a Structural Equation Modeling Approach
Authors: Chau Patrick Y.K.
Published: June 2007

Structural equation modeling is a technique that has been widely used for instrument validation and model testing in research in marketing and organizational behavior. The technique has also been introduced to MIS researchers and used in several studies recently reported in the literature. This article offers an example of how the technique can be used for instrument validation and model testing. The illustration is made through a reexamination of a model for evaluating information center (IC) success. With the growth of end‐user computing, the success of an IC is more important than ever. Obtaining a valid model for measuring IC success is thus crucial to organizations with ICs. The results of this study highlight the importance of a strong theoretical base in developing such a valid model, and management should be cautious when using these models to assess the performance of their ICs.
A Seasonal Index for Business
Authors: Ittig Peter T.
Published: June 2007

This paper explores the problem of obtaining a multiplicative seasonal index for forecasting sales from a small set of historical data (as is common in business applications) and in the presence of a trend. It is shown that the standard method for generating a seasonal index (from a centered moving average) contains a systematic error. This error is transmitted through to forecasts that use the seasonal index and causes higher than necessary safety stocks and other consequences. The paper presents two alternative consistent methods for estimating the seasonal index in the presence of a trend, one for a multiplicative (nonlinear) trend and one for an additive (linear) trend. These methods may be run easily on a spreadsheet program or on statistical software. The nonlinear method is suggested as a convenient alternative to the standard method in many circumstances.
Understanding the Complexity of the Model Formulation Process: A Protocol Analysis Approach*
Authors: Sen Arun , Vinze Ajay S.
Published: June 2007

Formulation of a model involves organization of certain elements of reality into an abstract structure that exhibits features and characteristics of the reality. The formulation process is complex, and this paper explores that complexity by looking at five previously analyzed problem situations in the managerial domain. This is done in several steps. First, the existing model formulation support (MFS) architectures are analyzed using structures‐mechanisms‐policies (SMP) model to extract the characteristic attributes of the model formulation process. It is then argued that an integration of these attributes into an architecture, called integrated modeling architecture (IMA), would be useful in supporting the complexities of the model formulation process. The validity of such an architecture is also examined using the verbalization transcripts for the five problems mentioned above. Our protocol analysis shows that the IMA attributes can explain the complexities of the model formulation process.
Managerial Use of Debt to Fund Municipal Government Risks*
Authors: Puelz Amy v. , Puelz Robert
Published: June 2007

In recent years, managers of municipalities have been forced to reevaluate the cost‐effectiveness of their risk management strategy. In many cases, individual or groups of municipalities (pools) finance a self‐insurance plan through the issuance of debt. However, no decision‐making methodology for cost‐effectively structuring the debt issue presently exists. Utilizing a math programming model, we examine a self‐insurance alternative to conventional insurance that uses tax‐exempt debt supplemented by taxable borrowing to finance a municipality's or pool's liability exposure. We implement our optimization model with actuarial and financial data from an intergovernmental risk pool (IRP) in the state of California, and simulate the effect of the trade‐offs important to sound managerial decision making. We find that significant savings are realized by using a self‐insurance plan rather than purchasing conventional insurance. We also find that managerial goals and risk preferences impact the decision when revenue flows are insufficient by themselves to reasonably fund expected losses.
Group Support Systems, Power, and Influence in an Organization: A Field Study
Authors: Williams Susan Rebstock , Wilson Rick L.
Published: June 2007

Emerging group technologies are attracting attention from researchers and practitioners for the benefits they potentially offer in terms of communications, productivity, and decision‐making capabilities within an organization. To date, research in this area has focused on process or outcome variables, substantively ignoring organizational context issues. This paper reports on a field study that investigated users' perceptions of the impact of group support systems on power and influence within the organization. The study was conducted within a division of a major U.S. software company specializing in the development of business software tools for desktop PCs. Fifteen purposively selected managers and nonmanagers, spanning diverse functional areas, were extensively interviewed for this study. Evidence gathered suggested that group support systems are perceived to exert an equalizing force on power and influence by (1) increasing participation in the decision‐making process, (2) improving access to information, (3) improving access to persons, (4) reducing the “power distance” to key individuals, and (5) providing increased opportunities to influence the opinions of others. These results provide a basis for future studies that will attempt to clarify the relationships between organizational context and group technology usage.
Virtual Teams versus Face‐to‐Face Teams: An Exploratory Study of a Web‐based Conference System*
Authors: Warkentin Merrill E. , Sayeed Lutfus , Hightower Ross
Published: June 2007

Many organizations are forming “virtual teams” of geographically distributed knowledge workers to collaborate on a variety of workplace tasks. But how effective are these virtual teams compared to traditional face‐to‐face groups? Do they create similar teamwork and is information exchanged as effectively? An exploratory study of a World Wide Web‐based asynchronous computer conference system known as Meeting Web™ is presented and discussed. It was found that teams using this computer‐mediated communication system (CMCS) could not outperform traditional (face‐to‐face) teams under otherwise comparable circumstances. Further, relational links among team members were found to be a significant contributor to the effectiveness of information exchange. Though virtual and face‐to‐face teams exhibit similar levels of communication effectiveness, face‐to‐face team members report higher levels of satisfaction. Therefore, the paper presents steps that can be taken to improve the interaction experience of virtual teams. Finally, guidelines for creating and managing virtual teams are suggested, based on the findings of this research and other authoritative sources.
Fostering Risk Taking in Research and Development: The Importance of a Project's Terminal Value
Authors: Case Randolph H. , Shane Scott
Published: June 2007

Large firms face a conflict in managing a portfolio of high‐risk projects. When an ongoing project is thought to have a low likelihood of success, project team members take risks to improve its chances of success. However, upper‐level managers who allocate resources tend to withhold resources from a project with a low likelihood of success in favor of others in the portfolio that look more promising. Because this paucity of resources influences project team members to avoid risk, the total effect of success likelihood on risk taking is conflicted. The influence on risk taking of a project's terminal value—defined as the value that remains in the firm in the event of project failure—is unequivocally positive, because both senior management resource allocation and project team risk‐taking propensity are encouraged by terminal value. Thus, firms can override the ambivalent effect of likelihood of success on project decision making by focusing attention on a project's terminal value.
An Instrument for Assessing the Organizational Benefits of IS Projects
Authors: Mirani Rajesh , Lederer Albert L.
Published: June 2007

This paper reports the development of an instrument to measure the organizational benefits of IS projects. The basis for this instrument was a published framework that suggests three categories of such benefits: strategic, informational, and transactional. In a cross‐sectional study of 178 IS projects proposed and approved for development, this framework was operationalized and empirically tested using the measurement model of LISREL. The analysis culminated in the validation and refinement of the these categories. The final instrument offers items under three separate subdimensions of strategic benefits: competitive advantage, alignment, and customer relations. Informational benefits are similarly comprised of information access, information quality, and information flexibility. Finally, transactional benefits are also shown to be of three types: communications efficiency, systems development efficiency, and business efficiency. Implications of this multidimensional instrument for IS practitioners and researchers are discussed.
On Inventory Abatement via Manufacturing Randomness Reductions*
Authors: Arreola‐Risa Antonio
Published: June 2007

Under a continuous improvement framework, the policy of abating inventory via reductions in manufacturing randomness is considered. To explore this policy, a model of a real‐world production‐inventory system is developed, tested, and studied. The results suggest that manufacturing randomness reductions, even substantial ones, may not necessarily lead to inventory abatement, and paradoxically may lead sometimes to an inventory increase. In these cases, however, manufacturing randomness reductions will translate into higher customer service levels.
Setting Tolerable Misstatements When Auditing Aggregated Accounts*
Authors: Barron Orie , Groomer S. Michael , Swink Morgan
Published: June 2007

Generally accepted auditing standards require auditors to plan audits of clients' account balances. If accounts are to be sampled, then part of this planning must include setting the tolerable misstatement for each account or class of transactions to be sampled. Although classical sampling approaches provide certain advantages, they have not been widely used because they are viewed as complex and difficult to implement. We present a remedy to these difficulties in an efficient, easily implemented optimal solution method for the problem of setting tolerable misstatements given constraints on tolerable misstatements for individual account balances as well as the overall audit. Further, our method suggests when the materialities of certain accounts or the materiality of the overall audit are irrelevant to the problem. Several example auditing problems demonstrate both our solution approach and the settings in which our approach provides a more effective or more efficient sampling plan than that provided by monetary unit sampling.
Effect of Level of Disaggregation on Conjoint Cross Validations: Some Comparative Findings*
Authors: Krieger Abba M. , Green Paul E. , Umesh U. N.
Published: June 2007

Early formulations of conjoint models focused on part‐worth estimation at the individual level. As the methodology's popularity grew so did industry demands for increasingly larger numbers of attributes and levels. In response to these demands, new approaches, based on partial or full data aggregation (such as clusterwise/latent class conjoint and choice‐based conjoint), have appeared. This paper suggests that pooled‐data models will often be successful in predicting market shares when researchers employ monotonic attributes. In these cases more of a good attribute (or less of a bad attribute) is always more preferred. In the more realistic case, in which some of the attributes may be nonmonotonic, we find that data aggregation does not predict holdout sample preferences as well as individual part‐worth models.
A Simulation Metamodel for Response‐Time Planning*
Authors: Watson Edward F. , Chawda Prabhulal P. , McCarthy Brad , Drevna Michael J. , Sadowski Randy P.
Published: June 2007

Field service management continues to be a major challenge for many service organizations as companies are required to provide more service with less resources. Especially in information intense environments, short response times for service calls are essential to avoid disruptions to a business office or production facility. Managers must regularly assess their manpower needs, and ensure that their allocation and operational decisions lead to the best service at the lowest cost.

Xerox Corporation provides copiers, duplicators, and printing systems to an international market. Xerox operates a service network consisting of over 30,000 trained service personnel, each allocated to service regions by the service planning staff. Response‐time planning involves many challenging problems: requirements planning at the national level, allocation planning at the district level, and operational planning at the team level. Customer service is critical and is commonly measured by response time—the time that elapses from when a service call is placed to when a service engineer begins service. This paper discusses how Xerox Corporation has used simulation models and metamodels to improve response‐time planning and field service operations.
Process Mean Determination with Quantity Discounts in Raw Material Cost*
Authors: Gong Linguo , Roan Jinshyang , Tang Kwei
Published: June 2007

Setting the mean (target value) for a container‐filling process is an important decision for a producer when the material cost is a significant portion of the production cost. Because the process mean determines the process conforming rate, it affects other production decisions, including, in particular, the production setup and raw material procurement policies. In this paper, we consider the situation in which quantity discounts exist in the raw material acquisition cost, and incorporate the quantity‐discount issue into an existing model that was developed for simultaneously determining the process mean, production setup, and raw material procurement policies for a container‐filling process. The product of interest is assumed to have a lower specification limit, and the items that do not conform to the specification limit are scrapped with no salvage value. The production cost of an item is proportional to the amount of the raw material used in producing the item. A two‐echelon model is formulated for a single‐product production process, and an algorithm is developed for finding the optimal solution. A sensitivity analysis is performed to study the effects of the model parameters on the optimal solution.
Causal Linkages in Supply Chain Management: An Exploratory Study of North American Manufacturing Firms
Authors: Narasimhan Ram , Jayaram Jayanth
Published: June 2007

In this paper we investigate the key causal linkages in supply chain management. We propose a conceptual framework and test this framework on data from 215 North American manufacturing firms using structural equation modeling techniques. Three major research issues are addressed in this study: Do sourcing decisions affect the degree to which firms achieve manufacturing goals of cost, flexibility, dependability, and quality? Does the degree of manufacturing goal achievement lead to higher customer responsiveness? Does the degree of manufacturing goal achievement lead to higher internal manufacturing performance? The study examines the relationship among sourcing decisions, manufacturing goals, customer responsiveness, and manufacturing performance. The results support the notion that an integrated supply chain involves aligning sourcing decisions to achieve manufacturing goals that are set to respond favorably to the needs of customers.
Modeling Supply Chain Dynamics: A Multiagent Approach*
Authors: Swaminathan Jayashankar M. , Smith Stephen F. , Sadeh Norman M.
Published: June 2007

A global economy and increase in customer expectations in terms of cost and services have put a premium on effective supply chain reengineering. It is essential to perform risk‐benefit analysis of reengineering alternatives before making a final decision. Simulation provides an effective pragmatic approach to detailed analysis and evaluation of supply chain design and management alternatives. However, the utility of this methodology is hampered by the time and effort required to develop models with sufficient fidelity to the actual supply chain of interest. In this paper, we describe a supply chain modeling framework designed to overcome this difficulty. Using our approach, supply chain models are composed from software components that represent types of supply chain agents (e.g., retailers, manufacturers, transporters), their constituent control elements (e.g., inventory policy), and their interaction protocols (e.g., message types). The underlying library of supply chain modeling components has been derived from analysis of several different supply chains. It provides a reusable base of domain‐specific primitives that enables rapid development of customized decision support tools.
Reconfiguring the Supply Network Using Current Performance Data
Authors: Ross Anthony , Venkataramanan M. A. , Ernstberger Kathryn W.
Published: June 2007

Reconfiguration of the supply chain network from time to time is essential for businesses to retain their competitive edge. This paper presents a methodology for reconfiguration of an existing supply chain network. The methodology is characterized by two decision levels. In the first level, the current network performance is evaluated and efficient practices are identified. In the next level, a model that incorporates efficient practices is developed to reconfigure the network. This integrated methodology allows for decision maker (DM) input throughout the process. The methodology has been implemented and tested in the reconfiguration of an outbound petroleum supply chain network for CountryMark Cooperative, Inc. In this case study, Data Envelopment Analysis (DEA) is used to analyze current operations and an integer programming (IP) model that incorporates efficiency metrics is developed for selection of distribution facilities and allocation of resources to the facilities. Use of this methodology can lead to improved operations and reduced operating expenses.
Influencing a Supplier Using Delivery Windows: Its Effect on the Variance of Flow Time and On‐Time Delivery
Authors: Grout John R.
Published: June 2007

A critical outcome that buyers seek is the timely delivery of the products they purchase from suppliers. Delivery windows have been proposed as a means to achieve this goal. This paper proposes a relatively simple model that shows that delivery windows do not always improve delivery timeliness. The effect of buyer‐specified delivery windows on the supplier's flow‐time variance, inventory, expected tardiness, and probability of on‐time delivery is analyzed. The analysis shows that although using delivery windows may result in the supplier's preferred action being a reduction in the variance of flow time, actual delivery timeliness may not improve. On‐time delivery performance is analyzed for linear and hyperbolic variance cost functions. The results indicate that when the cost of maintaining lower variances grows exponentially, variance reduction does not lead to more timely deliveries.
The Efficacy of Neural Networks in Predicting Returns on Stock and Bond Indices*
Authors: Desai Vijay S. , Bharati Rakesh
Published: June 2007

This paper uses two recently developed tests to identify neglected nonlinearity in the relationship between excess returns on four asset classes and several economic and financial variables. Having found some evidence of possible nonlinearity, it was then investigated whether the predictive power of these variables could be enhanced by using neural network models instead of linear regression or GARCH models.

Some evidence of nonlinearity in the relationships between the explanatory variables and large stocks and corporate bonds was found. It was also found that the GARCH models are conditionally efficient with respect to neural network models, but the neural network models outperform GARCH models if financial performance measures are used. In resonance with the results reported for the tests for neglected nonlinearity, it was found that the neural network forecasts are conditionally efficient with respect to linear regression models for large stocks and corporate bonds, whereas the evidence is not statistically significant for small stocks and intermediate‐term government bonds. This difference persists even when financial performance measures for individual asset classes are used for comparison.
The Consequences of Role‐conferred Bias and Base‐rate Neglect*
Authors: Doerr Kenneth H. , Mitchell Terence R.
Published: June 2007

This study examines the effect of training to reduce biases and heuristics on the consequence of judgments. We demonstrate that untrained subjects' judgments may systematically yield better consequences than judgments of subjects trained to reduce biases and heuristics. This result implies that educators should use caution when interpreting the findings of biases and heuristics research. In establishing the existence of situations in which biases and heuristics produce better consequences than an unbiased, or normative procedure, we open the larger question of the need for an elaboration of the prescriptive uses of the normative procedures.