Coordinating Inventory Control and Pricing Strategies with Random Demand and Fixed Ordering Cost: The Finite Horizon Case

We analyze a finite horizon, single product, periodic review model in which pricing and production/inventory decisions are made simultaneously. Demands in different periods are random variables that are independent of each other and their distributions depend on the product price. Pricing and ordering decisions are made at the beginning of each period and all shortages are backlogged. Ordering cost includes both a fixed cost and a variable cost proportional to the amount ordered. The objective is to find an inventory policy and a pricing strategy maximizing expected profit over the finite horizon. We show that when the demand model is additive, the profit-to-go functions are k-concave and hence an (s,S,p) policy is optimal. In such a policy, the period inventory is managed based on the classical (s,S) policy and price is determined based on the inventory position at the beginning of each period. For more general demand functions, i.e., multiplicative plus additive functions, we demonstrate that the profit-to-go function is not necessarily k-concave and an (s,S,p) policy is not necessarily optimal. We introduce a new concept, the symmetric k-concave functions and apply it to provide a characterization of the optimal policy.

Coordinating Inventory Control and Pricing Strategies with Random Demand and Fixed Ordering Cost: the Infinite Horizon Case

We analyze an infinite horizon, single product, periodic review model in which pricing and production/inventory decisions are made simultaneously. Demands in different periods are identically distributed random variables that are independent of each other and their distributions depend on the product price. Pricing and ordering decisions are made at the beginning of each period and all shortages are backlogged. Ordering cost includes both a fixed cost and a variable cost proportional to the amount ordered. The objective is to maximize expected discounted, or expected average profit over the infinite planning horizon. We show that a stationary (s,S,p) policy is optimal for both the discounted and average profit models with general demand functions. In such a policy, the period inventory is managed based on the classical (s,S) policy and price is determined based on the inventory position at the beginning of each period.

Demand of children in Colombia : guessing or planning

El artículo analiza los determinantes de la presencia de hijos no deseados en Colombia. Se utiliza la información de la Encuesta Nacional de Demografía y Salud (ENDS, 2005), específicamente para las mujeres de 40 años o más. Dadas las características especiales de la variable que se analiza, se utilizan modelos de conteo para verificar si determinadas características socioeconómicas como la educación o el estrato económico explican la presencia de hijos no deseados. Se encuentra que la educación de la mujer y el área de residencia son determinantes significativos de los nacimientos no planeados. Además, la relación negativa entre el número de hijos no deseados y la educación de la mujer arroja implicaciones clave en materia de política social.

Supply, demand and a failure of understanding: addressing the culture clash between archaeologists' expectations for training and employment in 'academia' versus 'practice

A university degree is effectively a prerequisite for entering the archaeological workforce in the UK. Archaeological employers consider that new entrants to the profession are insufficiently skilled, and hold university training to blame. But university archaeology departments do not consider it their responsibility to deliver fully formed archaeological professionals, but rather to provide an education that can then be applied in different workplaces, within and outside archaeology. The number of individuals studying archaeology at university exceeds the total number working in professional practice, with many more new graduates emerging than archaeological jobs advertised annually. Over-supply of practitioners is also a contributing factor to low pay in archaeology. Steps are being made to provide opportunities for vocational training, both within and outside the university system, but archaeological training and education within the universities and subsequently the archaeological labour market may be adversely impacted upon by the introduction of variable top-up student fees.

On the cutting stock problem under stochastic demand

This paper addresses the one-dimensional cutting stock problem when demand is a random variable. The problem is formulated as a two-stage stochastic nonlinear program with recourse. The first stage decision variables are the number of objects to be cut according to a cutting pattern. The second stage decision variables are the number of holding or backordering items due to the decisions made in the first stage. The problem`s objective is to minimize the total expected cost incurred in both stages, due to waste and holding or backordering penalties. A Simplex-based method with column generation is proposed for solving a linear relaxation of the resulting optimization problem. The proposed method is evaluated by using two well-known measures of uncertainty effects in stochastic programming: the value of stochastic solution-VSS-and the expected value of perfect information-EVPI. The optimal two-stage solution is shown to be more effective than the alternative wait-and-see and expected value approaches, even under small variations in the parameters of the problem.

Comparative advantage, heterogeneous firms and variable mark-ups

We develop a model of comparative advantage with monopolistic competition, that incorporates heterogeneous firms and endogenous mark-ups. We analyse how these features vary across countries with different factor endowments, and across markets of different size. In this model we can obtain trade gains via two channels. First, when we open the economy, most productive firms start to export their product, then, they demand more producing factors and wages rises, thus, those firms that are less productive will be forced to stop to produce. Second channel is via endogenous mark-ups, when we open the economy, the competition gets ``tougher'', then, mark-ups falls, thus, those firms that are less productive will stop to produce. We also show that comparative advantage works as a ``third channel'' of trade gains, because, all trade gains results are magnified in comparative advantage industry of both countries. We also make a numerical exercise to see how endogenous variables of the model vary when trade costs fall.

An ice machine adapted into an autonomous photovoltaic system without batteries using a variable-speed drive

The adaptation of a commercially available ice machine for autonomous photovoltaic operation without batteries is presented. In this adaptation a 1040 W(p) photovoltaic array directly feeds a variable-speed drive and a 24 V(dc) source. The drive runs an induction motor coupled by belt-and-pulley to an open reciprocating compressor, while the dc source supplies a solenoid valve and the control electronics. Motor speed and refrigerant evaporation pressure are set aiming at continuously matching system power demand to photovoltaic power availability. The resulting system is a simple integration of robust, standard, readily available parts. It produces 27 kg of ice in a clear-sky day and has ice production costs around US$0.30/kg. Although a few machine features might be specific to Brazil, its technical and economical guidelines are applicable elsewhere. Copyright (C); 2010 John Wiley & Sons, Ltd.

Variable ECG signs of ischemia during controlled occlusion of the left and right coronary artery in humans

Infarct size (IS) increases with vascular occlusion time, area at risk for infarction, lack of collateral supply, absence of preconditioning, and myocardial demand for O2 supply. ECG S-T segment elevation is used as a measure of severity of ischemia and a surrogate for IS. This study in 50 patients with coronary artery disease undergoing a first 120-s balloon occlusion of a stenosis sought to determine whether S-T segment elevation, corrected for the above-mentioned variables, in the left coronary artery (LCA group, n = 36) is different from that in the right coronary artery (RCA group, n = 14) territory. After consideration of all known determinants of IS, particularly mass at risk and collateral supply, the LCA territory is more sensitive than the RCA region to a 2-min period of myocardial ischemia.

Increased sensitivity in mapping task demand in visuospatial processing using reaction-time-dependent hemodynamic response predictors in rapid event-related fMRI

Searching for the neural correlates of visuospatial processing using functional magnetic resonance imaging (fMRI) is usually done in an event-related framework of cognitive subtraction, applying a paradigm comprising visuospatial cognitive components and a corresponding control task. Besides methodological caveats of the cognitive subtraction approach, the standard general linear model with fixed hemodynamic response predictors bears the risk of being underspecified. It does not take into account the variability of the blood oxygen level-dependent signal response due to variable task demand and performance on the level of each single trial. This underspecification may result in reduced sensitivity regarding the identification of task-related brain regions. In a rapid event-related fMRI study, we used an extended general linear model including single-trial reaction-time-dependent hemodynamic response predictors for the analysis of an angle discrimination task. In addition to the already known regions in superior and inferior parietal lobule, mapping the reaction-time-dependent hemodynamic response predictor revealed a more specific network including task demand-dependent regions not being detectable using the cognitive subtraction method, such as bilateral caudate nucleus and insula, right inferior frontal gyrus and left precentral gyrus.

The Quiet Eye and motor performance – Introducing fixation duration as an independent variable

Evidence suggests a strong relation between superior motor performance and the duration of the last fixation before movement initiation (called Quiet Eye, QE). Although this phenomenon proves to be quite robust, to date, only little is known about its functional role. Therefore, in two experiments, a novel paradigm is introduced, testing the QE as independent variable by experimentally manipulating the duration of the last fixation in a throwing task. In addition, this paradigm allowed for the manipulation of the predictability of the target position. Results of the first study revealed an increase in throwing accuracy as function of experimentally prolonged QE durations. Thus, the assumption that the QE does not surface as a mere by-product of superior performance could be confirmed. In the second study, this dependency was found only under high task-demand conditions in which the target position was not predictable. This finding confirms the hypothesis that it is the optimization of information processing which serves as the crucial mechanisms behind QE effects.

Transvenous demand Pacemaker Treatment for intermittent complete Heart Block in a Cat

A 13-year-old male neutered domestic shorthaired cat had repeated syncopal episodes over a 6 month period, which had variable duration and continued to increase in frequency. Intermittent ventricular asystole, due to complete heart block, and hyperthyroidism were documented. As the syncopal episodes did not respond to a 4-week medical treatment and symptoms became severe, a transvenous ventricular demand pacemaker system (VVIM) was implanted via the external jugular vein. The unipolar lead was tunneled subcutaneously and connected with the generator in a preformed ventral abdominal muscle pocket. During follow up of 18-months there were no recurrences of the syncopal episodes.

An empirical model to estimate the demand for primary care in urban settings

Objective. To measure the demand for primary care and its associated factors by building and estimating a demand model of primary care in urban settings.^ Data source. Secondary data from 2005 California Health Interview Survey (CHIS 2005), a population-based random-digit dial telephone survey, conducted by the UCLA Center for Health Policy Research in collaboration with the California Department of Health Services, and the Public Health Institute between July 2005 and April 2006.^ Study design. A literature review was done to specify the demand model by identifying relevant predictors and indicators. CHIS 2005 data was utilized for demand estimation.^ Analytical methods. The probit regression was used to estimate the use/non-use equation and the negative binomial regression was applied to the utilization equation with the non-negative integer dependent variable.^ Results. The model included two equations in which the use/non-use equation explained the probability of making a doctor visit in the past twelve months, and the utilization equation estimated the demand for primary conditional on at least one visit. Among independent variables, wage rate and income did not affect the primary care demand whereas age had a negative effect on demand. People with college and graduate educational level were associated with 1.03 (p < 0.05) and 1.58 (p < 0.01) more visits, respectively, compared to those with no formal education. Insurance was significantly and positively related to the demand for primary care (p < 0.01). Need for care variables exhibited positive effects on demand (p < 0.01). Existence of chronic disease was associated with 0.63 more visits, disability status was associated with 1.05 more visits, and people with poor health status had 4.24 more visits than those with excellent health status. ^ Conclusions. The average probability of visiting doctors in the past twelve months was 85% and the average number of visits was 3.45. The study emphasized the importance of need variables in explaining healthcare utilization, as well as the impact of insurance, employment and education on demand. The two-equation model of decision-making, and the probit and negative binomial regression methods, was a useful approach to demand estimation for primary care in urban settings.^

Desarrollo de un modelo para la caracterización termoeconómica de ciclos combinados de turbinas de gas y de vapor en condiciones de carga variable

En la actualidad, el interés por las plantas de potencia de ciclo combinado de gas y vapor ha experimentado un notable aumento debido a su alto rendimiento, bajo coste de generación y rápida construcción. El objetivo fundamental de la tesis es profundizar en el conocimiento de esta tecnología, insuficientemente conocida hasta el momento debido al gran número de grados de libertad que existen en el diseño de este tipo de instalaciones. El estudio se realizó en varias fases. La primera consistió en analizar y estudiar las distintas tecnologías que se pueden emplear en este tipo de centrales, algunas muy recientes o en fase de investigación, como las turbinas de gas de geometría variable, las turbinas de gas refrigeradas con agua o vapor del ciclo de vapor o las calderas de paso único que trabajan con agua en condiciones supercríticas. Posteriormente se elaboraron los modelos matemáticos que permiten la simulación termodinámica de cada uno de los componentes que integran las plantas, tanto en el punto de diseño como a cargas parciales. Al mismo tiempo, se desarrolló una metodología novedosa que permite resolver el sistema de ecuaciones que resulta de la simulación de cualquier configuración posible de ciclo combinado. De esa forma se puede conocer el comportamiento de cualquier planta en cualquier punto de funcionamiento. Por último se desarrolló un modelo de atribución de costes para este tipo de centrales. Con dicho modelo, los estudios se pueden realizar no sólo desde un punto de vista termodinámico sino también termoeconómico, con lo que se pueden encontrar soluciones de compromiso entre rendimiento y coste, asignar costes de producción, determinar curvas de oferta, beneficios económicos de la planta y delimitar el rango de potencias donde la planta es rentable. El programa informático, desarrollado en paralelo con los modelos de simulación, se ha empleado para obtener resultados de forma intensiva. El estudio de los resultados permite profundizar ampliamente en el conocimiento de la tecnología y, así, desarrollar una metodología de diseño de este tipo de plantas bajo un criterio termoeconómico. ABSTRACT The growing energy demand and the need of shrinking costs have led to the design of high efficiency and quick installation power plants. The success of combined cycle gas turbine power plants lies on their high efficiency, low cost and short construction lead time. The main objective of the work is to study in detail this technology, which is not thoroughly known owing to the great number of degrees of freedom that exist in the design of this kind of power plants. The study is divided into three parts. Firstly, the different technologies and components that could be used in any configuration of a combined cycle gas turbine power plant are studied. Some of them could be of recent technology, such as the variable inlet guide vane compressors, the H-technology for gas turbine cooling or the once-through heat recovery steam generators, used with water at supercritical conditions. Secondly, a mathematical model has been developed to simulate at full and part load the components of the power plant. At the same time, a new methodology is proposed in order to solve the equation system resulting for any possible power plant configuration. Therefore, any combined cycle gas turbine could be simulated at any part load condition. Finally a themoeconomic model is proposed. This model allows studying the power plant not only from a thermodynamic point of view but also from a thermoeconomic one. Likewise, it allows determining the generating costs or the cash flow, thus achieving a trade off between efficiency and cost. Likewise, the model calculates the part load range where the power plant is profitable. Once the thermodynamic and thermoeconomic models are developed, they are intensively used in order to gain knowledge in the combined cycle gas turbine technology and, in this way, to propose a methodology aimed at the design of this kind of power plants from a thermoeconomic point of view.

Explaining light vehicle demand evolution in interurban toll roads: a dynamic panel data analysis in Spain

Tolls have increasingly become a common mechanism to fund road projects in recent decades. Therefore, improving knowledge of demand behavior constitutes a key aspect for stakeholders dealing with the management of toll roads. However, the literature concerning demand elasticity estimates for interurban toll roads is still limited due to their relatively scarce number in the international context. Furthermore, existing research has left some aspects to be investigated, among others, the choice of GDP as the most common socioeconomic variable to explain traffic growth over time. This paper intends to determine the variables that better explain the evolution of light vehicle demand in toll roads throughout the years. To that end, we establish a dynamic panel data methodology aimed at identifying the key socioeconomic variables explaining changes in light vehicle demand over time. The results show that, despite some usefulness, GDP does not constitute the most appropriate explanatory variable, while other parameters such as employment or GDP per capita lead to more stable and consistent results. The methodology is applied to Spanish toll roads for the 1990?2011 period, which constitutes a very interesting case on variations in toll road use, as road demand has experienced a significant decrease since the beginning of the economic crisis in 2008.

Developpements asymptotiques dans les équations différentielles linéaires à paramètre variable.

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