EOQ, JIT and fixed costs in the Ready-mixed concrete industry

The successful implementation of just-in-time (JIT) purchasing policy in many industries has prompted many companies that still use the economic order quantity (EOQ) purchasing policy to ponder if they should switch to the JIT purchasing policy. Despite existing studies that directly compare the costs between the EOQ and JIT purchasing systems, this decision is, however, still difficult to be made, especially when price discount has to be considered. JIT purchasing may not always be successful even though plants that adopted JIT operations have experienced or can take advantage of physical space reduction. Hence, the objective of this study is to expand on a classical EOQ with a price discount model to derive the EOQ–JIT cost indifference point. The objective was tested and achieved through a survey and case study conducted in the ready-mixed concrete industry in Singapore.

A model for comparative analysis of inventory costs of JIT and EOQ purchasing in the ready mixed concrete industry

A model for comparing the inventory costs of purchasing under the economic order quantity (EOQ) system and the just-in-time (JIT) order purchasing system in existing literature concluded that JIT purchasing was virtually always the preferable inventory ordering system especially at high level of annual demand. By expanding the classical EOQ model, this paper shows that it is possible for the EOQ system to be more cost effective than the JIT system once the inventory demand approaches the EOQ-JIT cost indifference point. The case study conducted in the ready-mixed concrete industry in Singapore supported this proposition.

Burn-in policies for products having dormant states

Many systems might have a long time dormant period, during which the systems are not operated. For example, most building services products are installed while a building is constructed, but they are not operated until the building is commissioned. Warranty terms for such products may cover the time starting from their installation times to the end of their warranty periods. Prior to the commissioning of the building, the building services products are protected by warranty although they are not operating. Developing optimal burn-in policies for such products is important when warranty cost is analysed. This paper considers two burn-in policies, which incur different burn-in costs, and have different burn-in effects on the products. A special case about the relationship between the failure rates of the products at the dormant state and at the operating state is presented. Numerical examples compare the mean total warranty costs of these two burn-in policies.

Reliability in the whole life cycle of building systems

Purpose – The purpose of this research is to show that reliability analysis and its implementation will lead to an improved whole life performance of the building systems, and hence their life cycle costs (LCC). Design/methodology/approach – This paper analyses reliability impacts on the whole life cycle of building systems, and reviews the up-to-date approaches adopted in UK construction, based on questionnaires designed to investigate the use of reliability within the industry. Findings – Approaches to reliability design and maintainability design have been introduced from the operating environment level, system structural level and component level, and a scheduled maintenance logic tree is modified based on the model developed by Pride. Different stages of the whole life cycle of building services systems, reliability-associated factors should be considered to ensure the system's whole life performance. It is suggested that data analysis should be applied in reliability design, maintainability design, and maintenance policy development. Originality/value – The paper presents important factors in different stages of the whole life cycle of the systems, and reliability and maintainability design approaches which can be helpful for building services system designers. The survey from the questionnaires provides the designers with understanding of key impacting factors.

Critical reliability issues for building services systems

This paper addresses two critical issues associated with reliability and maintenance of building services systems. The first is the ratio of operating and/or maintenance costs to initial costs for building services systems. It is an important parameter for life cycle costing and maintenance policy development. The second is the proportion of items among building services systems that need preventive maintenance. In this paper, we estimate the ratios based on a cost dataset. It suggests that correctly estimating the ratio be important but using a constant ratio in life cycle costing may result in wrong decisions. It also estimates the proportion of preventive maintenance for building services systems on the basis of the distribution of failure patterns.

Burn in policies for products having dormant states

Constructing a building is a long process which can take several years. Most building services products are installed while a building is constructed, but they are not operated until the building is commissioned. The warranty term for the building service systems may cover the time starting from their installation to the end of the warranty period. Prior to the commissioning of the building, the building services systems are protected by warranty although they are not operated. The bum in time for such systems is important when warranty costs is analyzed. In this paper, warranty cost models for products with burn in periods are presented. Two burn in policies are developed to optimize the total mean warranty cost. A special case on the relationship between the failure rates of the product at the dormant state and at the I operating state is presented.

Exploring costs and benefits of HACCP: a pilot study in the dairy and meat products industry in the European Union

Since 1995 the Directive 93/43/EEC prescribes the application of HACCP principles in food production. However, despite the major importance of food safety, there is a fundamental lack of information on the economic impact of this directive. This project aims to study costs and benefits of HACCP, including the impact of HACCP on public health. Due to the complexity of the issue, we propose to start with a pilot study, limited to dairy and meat products industry in NL, UK and I. Information will be obtained at two levels: production chain and public health. Integration of these results will result in recommendations at the levels of EU member states and industry for regulation and supporting measures, and in recommendations for an effective and efficient approach for a more comprehensive project on costs and benefits of HACCP, covering major parts of the food industry in EU member states.

Lag-1 sparing in the attentional blink: benefits and costs of integrating two events into a single episode

When people monitor a visual stream of rapidly presented stimuli for two targets (T1 and T2), they often miss T2 if it falls into a time window of about half a second after T1 onset-the attentional blink. However, if T2 immediately follows T1, performance is often reported being as good as that at long lags-the so-called Lag-1 sparing effect. Two experiments investigated the mechanisms underlying this effect. Experiment 1 showed that, at Lag 1, requiring subjects to correctly report both identity and temporal order of targets produces relatively good performance on T2 but relatively bad performance on T1. Experiment 2 confirmed that subjects often confuse target order at short lags, especially if the two targets are equally easy to discriminate. Results suggest that, if two targets appear in close succession, they compete for attentional resources. If the two competitors are of unequal strength the stronger one is more likely to win and be reported at the expense of the other. If the two are equally strong, however, they will often be integrated into the same attentional episode and thus get both access to attentional resources. But this comes with a cost, as it eliminates information about the targets' temporal order.

Integrative views on dual-task costs

In this paper, we introduce a special issue about unique and shared mechanisms underlying the performance limitations observed in dual tasks. In particular, the relationship between task-switching costs, the attentional-blink effect, and the psychological refractory period effect is reviewed. These costs are traditionally attributed to fixed and unique capacity limitations for task set reconfiguration, target identification, and response selection, respectively However, we argue that more global attentional processes play a role that cuts across these paradigms. This is reason for a more paradigm-independent approach to processing limitations in dual tasks.

Variable selection algorithm for the construction of MIMO operating point dependent neurofuzzy networks

An input variable selection procedure is introduced for the identification and construction of multi-input multi-output (MIMO) neurofuzzy operating point dependent models. The algorithm is an extension of a forward modified Gram-Schmidt orthogonal least squares procedure for a linear model structure which is modified to accommodate nonlinear system modeling by incorporating piecewise locally linear model fitting. The proposed input nodes selection procedure effectively tackles the problem of the curse of dimensionality associated with lattice-based modeling algorithms such as radial basis function neurofuzzy networks, enabling the resulting neurofuzzy operating point dependent model to be widely applied in control and estimation. Some numerical examples are given to demonstrate the effectiveness of the proposed construction algorithm.