bluuebunny/crossref_metadata_2025_split huggingface dataset:
A Comparative Application of Data Envelopment Analysis and Translog Methods: An Illustrative Study of Hospital Production
Authors: Banker Rajiv D. , Conrad Robert F. , Strauss Robert P. 
Published: November 2008

This paper compares inferences about hospital cost and production correspondences from two different estimation models: (1) the econometric modeling of the translog cost function, and (2) the application of Data Envelopment Analysis (DEA). While there are numerous examples of the application of each approach to empirical data, this paper provides insights into the relative strengths of the estimation methods by applying both models to the same data. The translog results suggest that constant reruns are operant, whereas the DEA results suggest that both increasing and decreasing returns to scale may be observed in different segments of the production correspondence, in turn suggesting that the translog model may be ‘averaging’ diametrically opposite behavior. On the other hand, by examining the rate of output transformation, both models agree that patient days devoted to care of children are more resource intensive than those devoted to adults or to the elderly. In addition, we compare estimates of technical efficiencies of individual hospitals obtained from the two methods. The DEA estimates are found to be highly related to the capacity utilization, but no such relationship was found for the translog estimates. This comparative application of different estimation models to the same data to obtain inferences about the nature of underlying cost and production correspondences sheds interesting light on the strengths of each approach, and suggests the need for additional research comparing estimation models using real as well as simulated data.
Binding Versus Final-Offer Arbitration: A Combination is Best
Authors: Brams Steven J. , Merrill Samuel 
Published: November 2008

A new procedure is proposed for settling disputes which combines binding arbitration (BA) and final-offer arbitration (FOA). Unlike either of the two pure procedures, combined arbitration (CA) induces the two parties to converge in making their final offers. Under BA, the arbitrator's settlement is binding on the two sides; under FOA, the arbitrator chooses the final offer of the party closer to what he/she considers a fair settlement. Under CA, FOA is used if the arbitrator's notion of a fair settlement falls between the two final offers or if the final offers converge or crisscross; otherwise, BA is used. When modeled as a two-person, zero-sum game of imperfect information, in which the two parties make final offers to maximize their expected payoffs—based on their perception of the arbitrator's probability distribution of fair settlements—convergence is to the median and constitutes a global equilibrium if the probability distribution is continuous, unimodal, and symmetric about the median. When the distribution is not symmetric or the two parties have different distributions, alternative solutions are derived—including one based on the parties' being within a “critical distance” of each other—and illustrated by examples. Alternatives to the arbitrator's decision calculus are considered, and questions about applying the new arbitration procedure are discussed.
Final-Offer Arbitration
Authors: Wittman Donald 
Published: November 2008

In final-offer arbitration the two parties to a dispute submit final offers to an arbitrator. The arbitrator then chooses as the binding solution that offer which is closest to his own view of the appropriate outcome. Because the disputants are imperfectly informed about the arbitrator's preferences, final-offer arbitration can be modeled as a game of imperfect information. Interesting questions arise concerning the nature of the optimal strategies and how they are affected by different characteristics of the arbitrator and the disputants. We provide conditions for an equilibrium to exist in a final-offer arbitration game when there are k issues, the probability function is not specified and the disputants are either risk averse or risk neutral. Furthermore, the players may have differing beliefs about the arbitrator's probability function. We demonstrate that increased risk aversion by one of the parties will result in both players choosing positions farther away from the more risk averse party. We also discover the affect of bias (as well as the effect of increased sensitivity) by the arbitrator on the positions taken by the players.
A Market Entry Timing Model for New Technologies
Authors: Kalish Shlomo , Lilien Gary L. 
Published: November 2008

A central issue in new product development and planning is the market timing/entry decision. An entry too early may risk pushing an under-developed product into the marketplace, with possible negative results; however, a product/technology may sacrifice sales if entry is delayed too long. A market diffusion model is developed that incorporates negative word-of-mouth associated with new product failure, resulting from premature introduction. Our analysis suggests that, when introducing a new technology, significant penalties may be associated with mistiming introduction. The analysis was applied to a problem facing the photovoltaic program of the Department of Energy. A proposal to construct a 100-home demonstration program for photovoltaics (PV) in the Southwest was being evaluated. The analysis of this case showed that an argument can be made to delay the demonstration program for several years and that significant risks (in terms of lowered ultimate market penetration) exist when starting this PV demonstration program prematurely.
Extending Planning Languages to Include Optimization Capabilities
Authors: Roy Asim , Lasdon L. S. , Lordeman J. 
Published: November 2008

Planning languages and spreadsheet systems are very popular, and the number of new users is increasing dramatically. On larger computers, IFPS, System W, and FCS-EPS are among the most widely used systems; while on personal computers, Multiplan and 1-2-3 enjoy great popularity. Currently, such languages operate mainly as simulators, evaluating specific cases. In this paper, we propose methodology which is useful in designing an optimization capability for these languages. This capability permits the user to designate certain model variables as decisions, constraints, and the objective. Upper and lower limits on the decisions and constraints are also specified. The optimization interface then diagnoses the problem as linear or nonlinear, computes first partial derivatives needed by the solution algorithms, and invokes the appropriate “solver.” Information regarding the optimal solution is obtained using the reporting and graphics capabilities of the planning language. Sensitivity analysis and “what if” features permit easy modification of the problem for further analysis. These ideas have been implemented in a system called IFPS/OPTIMUM, which provides an optimization capability to users of the widely-used planning language IFPS. A simple IFPS/OPTIMUM example is presented, and two applications are described. Endowing planning languages with an optimization capability promises to increase dramatically the use of optimization. There are already hundreds of thousands of users of planning languages and spreadsheet systems, most of whom are unfamiliar with optimization models or methods. Making optimization a natural extension of systems they understand and find very useful holds great promise, both for applications and for teaching optimization concepts.
A Game Theoretic Approach to Collections and Disbursements
Authors: Orgler Yair E. , Tauman Yair 
Published: November 2008

Many firms use lock boxes serviced by local depository banks in an attempt to reduce collection float. Likewise, an increasing number of large firms use controlled disbursing to pay their bills, in order to increase and control their disbursement float. Almost all the literature treats the lock box location problem and the disbursement bank location problem separately. The purpose of this paper is to examine simultaneously the optimal collection strategies of sellers and the optimal payment strategies of buyers. Our analysis involves multiple periods where the decisions of each party take into consideration the potential strategies of the other. That is, the collection-payment problem is analyzed both as a two-party and a multiple-party game. The rationale for casting the problem in a game theoretic framework is quite simple: When a seller selects lock boxes and depository banks he takes into consideration the fact that his buyers may use controlled disbursing banks. Likewise, when buyers select disbursing banks or branches they realize that the seller may shift the location of the designated lock boxes in response. Obviously, our analysis is relevant primarily for firms that manage large amounts of payments and collections and use sophisticated cash management techniques.
Heuristics for Multilevel Lot-Sizing with a Bottleneck
Authors: Billington Peter J. , McClain John O. , Thomas L. Joseph 
Published: November 2008

In this paper we present a heuristic method, based on Lagrangian relaxation, for multilevel lot-sizing when there is a single bottleneck facility. A series of Lagrangian relaxations (one for each item in the product structure) is imbedded in a branch and bound procedure. The objective is to find a production schedule that fits within available capacity at minimum cost. The method has two solution phases, dual and primal. In the dual phase of the procedure, implied costs of setups and production are determined based on a tentative schedule. The primal phase is repeated with these new prices and we iterate to reach a good solution. The solution procedure is first tested on two special cases: uncapacitated multilevel lot-sizing and the capacitated, single-level multi-item lot sizing problem. The results show that the solution procedure can provide better solutions than some heuristics designed especially for those problems. Test results on the bottleneck problem indicate that good feasible solutions are found for problems too difficult to solve with exact methods.
Incorporating Learning Curve Analysis into Medium-Term Capacity Planning Procedures: A Simulation Experiment
Authors: Smunt Timothy L. 
Published: November 2008

The purpose of this paper is to determine the type of company which can benefit from incorporating learning curve analysis into its medium-term capacity planning procedures and the effect of information aggregation on learning curve capacity projections. The research into these two issues uses a simulation study that describes the relevant production and information characteristics. Four production characteristic variables are investigated: (1) average learning rate, (2) run-time variance, (3) learning rate mix, and (4) run-time distribution. A fifth variable, level of data aggregation, is an information characteristic and is also investigated. The results of this study indicate that there are significant increases possible in the accuracy of medium-term capacity projections from the incorporation of learning curve analysis in firms with high rates of learning or with low noise levels in their data. However, when a company has either low to moderate rates of learning or moderate noise, a standard analysis, which uses the sample mean of the last planning horizon's data, provides projections approximately as accurate as a learning curve estimate.
Detection of Nonstationarity in Hydrologic Time Series
Authors: Rao A. Ramachandra , Yu G. H. 
Published: November 2008

Detection of changes in hydrologic time series due to intervention by man or natural causes is an important problem. Although intervention analysis has been used in the recent past to analyze nonstationary hydrologic time series, the necessity to specify a model of change and an initial time at which the time series has started to change are obvious disadvantages of intervention analysis. An alternative to intervention analysis is a method which is based on spectral characteristics and an exponential moving average model. The basic objective of the research discussed in the present paper is to test this alternative method. The model is tested by using synthetic uncorrelated and correlated data with step and gradual changes as well as by using real hydrologic time series. The sensitivity of the model to different parameters is also explored. The alternative model is found to be quite accurate in detecting changes in hydrologic time series.
From EOQ Towards ZI
Authors: Zangwill Willard I. 
Published: November 2008

Zero Inventory (ZI) is a new and powerful concept to improve production efficiency. Underpinning ZI is set up reduction and this paper examines what eventuates when set up costs are cut. The folklore is that set up reduction lowers inventory and costs. We obtain results contrary to that. Reducing set up costs need not reduce inventory, for example. Likewise lowering set up costs need not necessarily lower total production and inventory costs. Furthermore, most investments produce marginally decreasing returns. Set up cost reduction prompts the opposite; it produces marginally increasing (not decreasing) returns. A parametric algorithm that calculates the benefit of set up cost reduction is provided. Most presentations of ZI have been descriptive with very few mathematical models of it yet untaken. By modeling certain ZI concepts mathematically, we scrutinize their validity and sometimes invalidity.
Consumer Protection Laws: Violator Detection and Enforcement Strategy
Authors: Labarbera Priscilla A. , Melnick Edward L. 
Published: November 2008

A methodology is proposed for both the assessment and enforcement of consumer protection laws and regulations. An assessment model is presented to determine the effect of a law (e.g., violation rate, characteristics and/or profile of violators) and then a cost efficient law enforcement strategy is described that is aimed at the violator population identified by the assessment model. This methodology consists of a short enforcement campaign, directed mainly against the violators, and is then followed by an inexpensive maintenance program. Data for the assessment model are collected based upon an interrupted stratified time series design where the stratification scheme is selected by satisfying a minimum variance criterion. The stratification rule may vary so that a dynamic representation of the changing characteristics of the violator population is obtained.
On Optimal Competitive Contracting
Authors: Engelbrecht-Wiggans Richard 
Published: November 2008

We present an example of risk neutral bid-taker and bidders in which the bid-taker obtains a greater expected revenue from auctioning an inefficient contract than from auctioning an efficient contract. This occurs because in going from the efficient contract to an inefficient (but almost efficient) contract, the winning bidder's expected profit decreases faster than the value of the output produced under the contract (net of production costs) decreases. Therefore, the bid-taker's expected revenue—the value of the output less the winning bidder's expected profit—increases. The competitive letting of a contract introduces a factor not present when somehow letting a contract noncompetitively. In particular, changing the contract not only affects the efficiency of the contract, but also affects the amount of the contract's value that will be captured by the contract winner as profit. Therefore, for competitively let contracts, the optimal contract for the bid-taker to offer turns out less efficient than can be explained solely by any benefits from risk sharing.
Application of Game Theoretic Analysis to a Problem in Demography
Authors: Owen Guillermo 
Published: November 2008

Governments in certain countries have tried over the last two decades to draw most industry to the largest cities. The effect has generally been a large increase in both the population and land area of the cities, as the nearby rural areas are taken out of agricultural production and urbanized. Where the land is especially fertile, this can represent a definite loss to the country's agricultural capabilities. By studying the Nash equilibria we show that, given political pressures, there is a very real danger that this process will continue until all, or practically all of the land has been urbanized.
The Efficiency of the Simplex Method: A Survey
Authors: Shamir Ron 
Published: November 2008

The Linear Programming Problem is by far the most widely used optimization model. Its impact on economic and government modeling is immense. The Simplex Method for solving the Linear Programming (LP) Problem, due to George Dantzig, has been an extremely efficient computational tool for almost four decades. The method has been the subject of intense investigations for many years, but some major aspects of its behavior are not fully understood yet. The purpose of this paper is to survey the body of knowledge on the efficiency of the Simplex Method, from both practical and theoretical points of view. Adopting the number of iterations (pivot steps) as the yardstick for efficiency, we survey four aspects of the issue: 1. Reports on practical experience of the method's performance on real-life LP problems. 2. Results on controlled (Monte-Carlo) experiments solving LP problems which were randomly generated according to some predetermined distributions. 3. Complexity results, including theoretical analyses on both upper and lower bounds for the performance of the Simplex as well as non-Simplex algorithms for LP. 4. Results of recent theoretical studies using probabilistic analysis to derive bounds on the average behavior of the Simplex Method. We discuss the consequences and limitations of the various studies. Special emphasis is given to open questions.
The Financing Threshold Effect on Success and Failure of Biomedical and Pharmaceutical Start-Ups
Authors: Roberts Edward B. , Hauptman Oscar 
Published: November 2008

The theories of technological innovation are examined in the context of the formation and growth of biomedical and pharmaceutical firms. Analyses are based on detailed data gathered from 26 firms, founded between 1968 and 1975 in Massachusetts, supplemented by a three-member expert panel evaluation of the risk associated with use of each firm's products. A positive relationship was established between the level of technological sophistication of the firm and the risk associated with use of its products. Consequently, technological advancement of the firm has not necessarily resulted in high economic performance, in part because of the high demands put upon the firm's resources and time by the U.S. Food and Drug Administration approval process. The study indicates that the initial financial inputs have a threshold effect on subsequent economic performance of biomedical and pharmaceutical new firms. In the sample studied, unless these inputs reached the $850,000 to $1,000,000 mark (in 1970–1975 dollars), technological innovation was negatively mediated by the risk associated with the use of firm's products and by the FDA quality control procedures. Consequently, attempts at technological innovativeness are unfortunately detrimental to the economic performance of underfinanced new firms in the biomedical and pharmaceutical industry.
Risk and the Relationship Among Strategy, Organizational Processes, and Performance
Authors: Jemison David B. 
Published: November 2008

Performance is an important variable in strategic management research. But, although managers must deal with performance on two dimensions, its level (return) and the variation in that level (risk), performance has traditionally been studied only in terms of return. This paper reports the results of a study of business strategy content and processes where performance was operationalized as both return and risk. In a field study of 20 firms in the banking industry in one state, different strategies were found to be associated with differences in risk but not in return. The effects of processes on performance were varied; some processes were associated with risk only, some with return only, and others with both risk and return. These results suggest that the relationships among strategy, processes and performance are more complex than most researchers have acknowledged. Further theoretical and managerial insights may be gained into these relationships if risk is included as a dimension of performance in strategic management research.
Evaluating Project Scheduling and Due Date Assignment Procedures: An Experimental Analysis
Authors: Dumond John , Mabert Vincent A. 
Published: November 2008

Managers of construction projects, maintenance activities, auditing contracts, software shops, etc. are frequently faced with the task of establishing a new project's due date, which must compete with other projects already in progress or expected (forecasted) to start in the future. The study reported here addresses the problem of establishing due dates for projects which require limited resources, in an environment where new projects arrive continuously and randomly over time. A set of procedures is developed which set each project's due date when it arrives using information about the new project, current projects, and available resources. The due date setting procedures are tested via simulation with four activity scheduling heuristics that control the assignment of resources to specific activities of available projects. A second test demonstrates the performance of the due date procedures, where a portion of arriving projects have their due dates established by external forces beyond management's control. Performance measures of project mean completion time, project mean lateness, project standard deviation of lateness, and total tardiness (sum of all projects' tardy time) were collected for evaluation. This study presents a number of important results for managers interested in scheduling projects and setting due dates. First, using more information concerning the current work in progress, available resources, and activity precedent relationships provides a better due date estimate for a new project. Second, a finite scheduling procedure (called SFT) consistently gives better due date estimates than simpler aggregate procedures. Third, when some project due dates are set externally, due date performance deteriorates. However, when SFT is combined with a due date oriented activity scheduling rule, due dale performance deterioration is less. Fourth, the effort, measured by CPU time, for SFT to estimate a good due date depends upon the ratio of activity resources required to total resources available, rather than the number of activities across all projects. And fifth, similarities and differences between the results observed in this study and past due date job shop scheduling research are reviewed.