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Production Decisions (production + decision)
Selected AbstractsEnter at your own risk: HMO participation and enrollment in the Medicare risk marketECONOMIC INQUIRY, Issue 3 2000J Abraham We examine HMO participation and enrollment in the Medicare risk market for the years 1990 to 1995. We develop a profit-maximization model of HMO behavior, which explicitly considers potential linkages between an HMO's production decision in the commercial enrollee market and its participation and production decisions in the Medicare risk market. Our results suggest that the payment rate is a primary determinant of HMO participation, while the price of a supplemental Medicare insurance policy positively affects HMO Medicare enrollment. We also find empirical support for the existence of complementarities in the joint production of an HMO's commercial and Medicare products. [source] Offshore Remanufacturing with Variable Used Product ConditionDECISION SCIENCES, Issue 1 2010Michael R. Galbreth ABSTRACT We consider the acquisition and production decisions of a remanufacturer who acquires used products of variable condition and allocates remanufacturing activity to domestic and offshore facilities. The problem is formulated as a multicommodity network flow model with economies of scale and product obsolescence. We show that the remanufacturer's optimal strategy can be chosen from a finite set of simple policies in which each product is routed to a facility based on its condition. We then numerically investigate the impact of key parameters on optimal decisions regarding offshore remanufacturing. [source] Liquidity and Trading DynamicsECONOMETRICA, Issue 6 2009Veronica Guerrieri In this paper, we build a model where the presence of liquidity constraints tends to magnify the economy's response to aggregate shocks. We consider a decentralized model of trade, where agents may use money or credit to buy goods. When agents do not have access to credit and the real value of money balances is low, agents are more likely to be liquidity constrained. This makes them more concerned about their short-term earning prospects when making their consumption decisions and about their short-term spending opportunities when making their production decisions. This generates a coordination element in spending and production which leads to greater aggregate volatility and greater comovement across producers. [source] Enter at your own risk: HMO participation and enrollment in the Medicare risk marketECONOMIC INQUIRY, Issue 3 2000J Abraham We examine HMO participation and enrollment in the Medicare risk market for the years 1990 to 1995. We develop a profit-maximization model of HMO behavior, which explicitly considers potential linkages between an HMO's production decision in the commercial enrollee market and its participation and production decisions in the Medicare risk market. Our results suggest that the payment rate is a primary determinant of HMO participation, while the price of a supplemental Medicare insurance policy positively affects HMO Medicare enrollment. We also find empirical support for the existence of complementarities in the joint production of an HMO's commercial and Medicare products. [source] Cell Production and Workplace Innovation in Japan: Toward a New Model for Japanese Manufacturing?INDUSTRIAL RELATIONS, Issue 4 2002Katsuhide Isa This article investigates the current trend toward cell production and other workplace innovations in Japan using a large,scale sampling survey of manufacturing firms and in,depth interviews with four leading electrical and electronic establishments. The quantitative analysis reveals the correlation between the use of cell production and the ratio of female to male workers and production strategy variables, as well as the positive effect of cell production on operating profit rates and ordinary profit rates. The case studies reveal the following points: First, processes and organizations have been decentralized to the degree that individual workshops move toward taking primary responsibility for customer relations, production decisions, and delivery. Corporate headquarters increasingly play a coordinating rather than decision,making role. Second, firms have steadily implemented make,to,order systems by tightening links to suppliers and customers and developing new inventory and cost,control systems. Third, firms have started to implement more performance,based personnel practices. However, considerable variance among firms is observed in complementary changes, particularly personnel innovations. [source] The impact of the 1999 CAP reforms on the efficiency of the COP sector in SpainAGRICULTURAL ECONOMICS, Issue 3 2009Fatima Lambarraa Agenda 2000; Distance function; Efficiency; Spanish COP sector Abstract The cereal, oilseeds, and protein crop sector (COP) occupies a prominent position within the European Union's agricultural sector. Within Spain, the COP sector accounts for almost a third of total Agricultural Guidance and Guarantee Fund expenses, and half of the utilized agricultural area (UAA). The COP sector is not only relevant because of its physical and economic magnitude, but also because of the political attention it receives. The Common Agricultural Policy (CAP) reforms that occurred during the 1990s paid special attention to this sector. This article aims to determine the impacts of Agenda 2000 on a sample of Spanish COP farmers' production decisions by using an output-oriented stochastic distance function. The distance function allows for an assessment of the reform-motivated changes on total output, input used, input composition, and crop mix. It also permits an assessment of the impacts of the reform on farms' technical efficiency. Results show that the reform has shifted the production frontier inward and changed output composition in favor of voluntary set-aside land. With respect to input composition, Agenda 2000 induced a decrease in land, fertilizers, pesticides, and other inputs in favor of labor. In addition, Agenda 2000 has had a negative impact on technical efficiency. [source] Does nonagricultural labor relax farmers' credit constraints?AGRICULTURAL ECONOMICS, Issue 2 2009Evidence from longitudinal data for Vietnam Rural labor markets; Linkages; Credit constraints; Vietnam Abstract We examine the relationship between participation in nonagricultural labor activities and farming production decisions, focusing on the use of inputs. Using longitudinal data for Vietnam from 1993 to 1998, we find that households engaged in nonagricultural labor spend significantly more on seeds, services, hired labor, and livestock inputs. This is consistent with the hypothesis that nonagricultural labor income relaxes credit constraints to farming. [source] Decisions on Production and the Behaviour of Savers in Recent General Equilibrium ModelsMETROECONOMICA, Issue 3 2000Fabio Ravagnani Modern general equilibrium theory faces notorious difficulty in extending the analysis of production to economies without complete forward markets, since at the ,initial date' the owners of any firm will typically disagree about the choice of the production plan. This paper examines the main approaches to the problem, with the specific aim of verifying whether they allow a satisfactory account of the interplay between firms and savers. It is argued that the theory oscillates between assumptions that may prove incompatible with savers' rationality, and hypotheses that prevent this shortcoming but render the formation of production decisions quite hard to explain. [source] Impact of Price Postponement on Capacity and Flexibility Investment DecisionsPRODUCTION AND OPERATIONS MANAGEMENT, Issue 2 2006Stephan Biller Investments in dedicated and flexible capacity have traditionally been based on demand forecasts obtained under the assumption of a predetermined product price. However, the impact on revenue of poor capacity and flexibility decisions can be mitigated by appropriately changing prices. While investment decisions need to be made years before demand is realized, pricing decisions can easily be postponed until product launch, when more accurate demand information is available. We study the effect of this price decision delay on the optimal investments on dedicated and flexible capacity. Computational experiments show that considering price postponement at the planning stage leads to a large reduction in capacity investments, especially in the more expensive flexible capacity, and a significant increase in profits. Its impact depends on demand correlation, elasticity and diversion, ratio of fixed to variable capacity costs, and uncertainty remaining at the times the pricing and production decisions are made. [source] Demand and Production Management with Uniform Guaranteed Lead TimePRODUCTION AND OPERATIONS MANAGEMENT, Issue 4 2005Uday S. Rao Recently, innovation-oriented firms have been competing along dimensions other than price, lead time being one such dimension. Increasingly, customers are favoring lead time guarantees as a means to hedge supply chain risks. For a make-to-order environment, we explicitly model the impact of a lead time guarantee on customer demands and production planning. We study how a firm can integrate demand and production decisions to optimize expected profits by quoting a uniform guaranteed maximum lead time to all customers. Our analysis highlights the increasing importance of lead time for customers, as well as the tradeoffs in achieving a proper balance between revenue and cost drivers associated with lead-time guarantees. We show that the optimal lead time has a closed-form solution with a newsvendor-like structure. We prove comparative statics results for the change in optimal lead time with changes in capacity and cost parameters and illustrate the insights using numerical experimentation. [source] The Effects of Foreign Price Uncertainty on Australian Production and Trade,THE ECONOMIC RECORD, Issue 273 2010ELIE APPELBAUM This article provides an empirical analysis of the impact of uncertain international prices on Australia's production sector and international trade. We model the movement of traded goods prices via a generalised autoregressive conditional heteroskedasticity model and embed this within an expected utility maximising model of the production sector. The empirical results are consistent with expected utility maximisation and the hypothesis of risk neutrality is soundly rejected. Estimates of the effects of changes in expected prices and volatility of traded goods prices upon production decisions and the return to capital are discussed. The conclusion is that price uncertainty matters for the Australian production sector. [source] | ||||||||||