This document summarizes an article from the International Journal of Management that discusses inventory models with stochastic demand and partial backlogging. It presents three key points:
1) It develops an approximate closed-form solution for the expected total cost of a single period inventory model where demand is stochastic and follows the SCBZ property.
2) It examines the model through three cases: the first considers holding cost without salvage value; the second varies only the holding cost satisfying the SCBZ property; the third incorporates partial backlogging with time-dependent and time-independent shortage costs.
3) Optimal solutions are derived for each case and numerical examples are provided to validate the models.
A Fuzzy Arithmetic Approach for Perishable Items in Discounted Entropic Order...Waqas Tariq
This paper uses fuzzy arithmetic approach to the system cost for perishable items with instant deterioration for the discounted entropic order quantity model. Traditional crisp system cost observes that some costs may belong to the uncertain factors. It is necessary to extend the system cost to treat also the vague costs. We introduce a new concept which we call entropy and show that the total payoff satisfies the optimization property. We show how special case of this problem reduce to perfect results, and how post deteriorated discounted entropic order quantity model is a generalization of optimization. It has been imperative to demonstrate this model by analysis, which reveals important characteristics of discounted structure. Further numerical experiments are conducted to evaluate the relative performance between the fuzzy and crisp cases in EnOQ and EOQ separately.
EOQ Inventory Models for Deteriorating Item with Weibull Deterioration and Ti...ijceronline
This paper develops an EOQ inventory model for deterioratingitemswith two parameters Weibull deterioration. Shortages are permissible andpartially backlogged. In this model we consider time varying quadratic holding cost and ramp-type demand. The model is developed under two different replenishment policies: (i) Starting with no shortages (ii) Starting with shortages.The aim of this study is to find the optimal solutiontominimizing the total inventory costs for both the above mentioned strategies. To elevate the model a numerical example has been carried out and a sensitivity analysis occurred to study the result of parameters on essential variables and the entire cost of this model.
VOLATILITY FORECASTING - A PERFORMANCE MEASURE OF GARCH TECHNIQUES WITH DIFFE...ijscmcj
Volatility Forecasting is an interesting challenging topic in current financial instruments as it is directly associated with profits. There are many risks and rewards directly associated with volatility. Hence forecasting volatility becomes most dispensable topic in finance. The GARCH distributions play an important role in the risk measurement and option pricing. The min motive of this paper is to measure the performance of GARCH techniques for forecasting volatility by using different distribution model. We have used 9 variations in distribution models that are used to forecast the volatility of a stock entity. The different GARCH distribution models observed in this paper are Std, Norm, SNorm, GED, SSTD, SGED, NIG, GHYP and JSU. Volatility is forecasted for 10 days in advance and values are compared with the actual values to find out the best distribution model for volatility forecast. From the results obtain it has been observed that GARCH with GED distribution models has outperformed all models.
Volatility Forecasting - A Performance Measure of Garch Techniques With Diffe...ijscmcj
Volatility Forecasting is an interesting challengingtopicin current financial instruments as it is directly associated with profits. There are many risks and rewards directly associated with volatility. Hence forecasting volatility becomes most dispensable topic in finance. The GARCH distributionsplay an import ant role in the risk measurement a nd option pricing. T heminmotiveof this paper is tomeasure the performance of GARCH techniques for forecasting volatility by using different distribution model. We have used 9 variations in distribution models that are used to forecast t he volatility of a stock entity. Thedifferent GARCH
distribution models observed in this paper are Std, Norm, SNorm,GED, SSTD, SGED, NIG, GHYP and JSU.Volatility is forecasted for 10 days in dvance andvalues are compared with the actual values to find out the best distribution model for volatility forecast. From the results obtain it has been observed that GARCH withGED distribution models has outperformed all models
1) The document presents an entropic order quantity (EnOQ) model that incorporates cash discounts offered after products start to deteriorate. The model aims to optimize the payoff by handling multiple objectives like deterioration and demand that depends on inventory levels and selling price.
2) The model is formulated as a system of differential equations to capture inventory levels over time with deterioration and demand functions. Total profit per unit time is derived considering relevant costs like ordering, holding, and entropy costs as well as revenue.
3) A numerical example is provided to illustrate the model and the procedure for maximizing total profit per unit time subject to the constraint that discounted selling price must be greater than the unit cost.
This document presents an inventory model for deteriorating items with time-dependent linear demand under partial backlogging. The model minimizes total inventory costs over a fixed planning period. Deterioration and holding costs are constant. Shortages are allowed and partially backlogged by the next replenishment. The model is solved analytically to find the optimal point where total cost per unit time is minimized. The model can help optimize costs for businesses where deterioration and holding costs remain constant.
This document analyzes the dual beta model for stocks listed on the Karachi Stock Exchange between 1997-2007. It finds that beta, a measure of risk, varies between bull and bear markets for some stocks. Specifically, the beta was higher in bear markets than bull markets for 9 of the 15 stocks analyzed, while the reverse was true for the other 6 stocks. The analysis uses a dual beta model that estimates separate betas for bull and bear periods to test if the betas are statistically different between the two market conditions. The results provide some evidence that beta varies depending on whether the overall market is rising or falling.
A Fuzzy Arithmetic Approach for Perishable Items in Discounted Entropic Order...Waqas Tariq
This paper uses fuzzy arithmetic approach to the system cost for perishable items with instant deterioration for the discounted entropic order quantity model. Traditional crisp system cost observes that some costs may belong to the uncertain factors. It is necessary to extend the system cost to treat also the vague costs. We introduce a new concept which we call entropy and show that the total payoff satisfies the optimization property. We show how special case of this problem reduce to perfect results, and how post deteriorated discounted entropic order quantity model is a generalization of optimization. It has been imperative to demonstrate this model by analysis, which reveals important characteristics of discounted structure. Further numerical experiments are conducted to evaluate the relative performance between the fuzzy and crisp cases in EnOQ and EOQ separately.
EOQ Inventory Models for Deteriorating Item with Weibull Deterioration and Ti...ijceronline
This paper develops an EOQ inventory model for deterioratingitemswith two parameters Weibull deterioration. Shortages are permissible andpartially backlogged. In this model we consider time varying quadratic holding cost and ramp-type demand. The model is developed under two different replenishment policies: (i) Starting with no shortages (ii) Starting with shortages.The aim of this study is to find the optimal solutiontominimizing the total inventory costs for both the above mentioned strategies. To elevate the model a numerical example has been carried out and a sensitivity analysis occurred to study the result of parameters on essential variables and the entire cost of this model.
VOLATILITY FORECASTING - A PERFORMANCE MEASURE OF GARCH TECHNIQUES WITH DIFFE...ijscmcj
Volatility Forecasting is an interesting challenging topic in current financial instruments as it is directly associated with profits. There are many risks and rewards directly associated with volatility. Hence forecasting volatility becomes most dispensable topic in finance. The GARCH distributions play an important role in the risk measurement and option pricing. The min motive of this paper is to measure the performance of GARCH techniques for forecasting volatility by using different distribution model. We have used 9 variations in distribution models that are used to forecast the volatility of a stock entity. The different GARCH distribution models observed in this paper are Std, Norm, SNorm, GED, SSTD, SGED, NIG, GHYP and JSU. Volatility is forecasted for 10 days in advance and values are compared with the actual values to find out the best distribution model for volatility forecast. From the results obtain it has been observed that GARCH with GED distribution models has outperformed all models.
Volatility Forecasting - A Performance Measure of Garch Techniques With Diffe...ijscmcj
Volatility Forecasting is an interesting challengingtopicin current financial instruments as it is directly associated with profits. There are many risks and rewards directly associated with volatility. Hence forecasting volatility becomes most dispensable topic in finance. The GARCH distributionsplay an import ant role in the risk measurement a nd option pricing. T heminmotiveof this paper is tomeasure the performance of GARCH techniques for forecasting volatility by using different distribution model. We have used 9 variations in distribution models that are used to forecast t he volatility of a stock entity. Thedifferent GARCH
distribution models observed in this paper are Std, Norm, SNorm,GED, SSTD, SGED, NIG, GHYP and JSU.Volatility is forecasted for 10 days in dvance andvalues are compared with the actual values to find out the best distribution model for volatility forecast. From the results obtain it has been observed that GARCH withGED distribution models has outperformed all models
1) The document presents an entropic order quantity (EnOQ) model that incorporates cash discounts offered after products start to deteriorate. The model aims to optimize the payoff by handling multiple objectives like deterioration and demand that depends on inventory levels and selling price.
2) The model is formulated as a system of differential equations to capture inventory levels over time with deterioration and demand functions. Total profit per unit time is derived considering relevant costs like ordering, holding, and entropy costs as well as revenue.
3) A numerical example is provided to illustrate the model and the procedure for maximizing total profit per unit time subject to the constraint that discounted selling price must be greater than the unit cost.
This document presents an inventory model for deteriorating items with time-dependent linear demand under partial backlogging. The model minimizes total inventory costs over a fixed planning period. Deterioration and holding costs are constant. Shortages are allowed and partially backlogged by the next replenishment. The model is solved analytically to find the optimal point where total cost per unit time is minimized. The model can help optimize costs for businesses where deterioration and holding costs remain constant.
This document analyzes the dual beta model for stocks listed on the Karachi Stock Exchange between 1997-2007. It finds that beta, a measure of risk, varies between bull and bear markets for some stocks. Specifically, the beta was higher in bear markets than bull markets for 9 of the 15 stocks analyzed, while the reverse was true for the other 6 stocks. The analysis uses a dual beta model that estimates separate betas for bull and bear periods to test if the betas are statistically different between the two market conditions. The results provide some evidence that beta varies depending on whether the overall market is rising or falling.
MODELING THE AUTOREGRESSIVE CAPITAL ASSET PRICING MODEL FOR TOP 10 SELECTED...IAEME Publication
Systematic risk is the uncertainty inherent to the entire market or entire market segment and Unsystematic risk is the type of uncertainty that comes with the company or industry we invest. It can be reduced through diversification. The study generalized for selecting of non -linear capital asset pricing model for top securities in BSE and made an attempt to identify the marketable and non-marketable risk of investors of top companies. The analysis was conducted at different stages. They are Vector auto regression of systematic and unsystematic risk.
1) The document analyzes the relationship between stock-commodity correlation and business cycles from 1991-2014 using regression analysis. It finds the stock-commodity correlation is positively related to periods of economic weakness, as evidenced by a positive relationship with default spread.
2) Regression models show stock-commodity correlation is serially correlated and has a negative relationship with default spread, indicating higher correlation during recessions. However, the effect of real GDP growth and inflation on correlation is unclear.
3) In conclusion, the findings are consistent with prior research that stock-commodity correlation increases during economic downturns, when firms adjust behaviors and investor pessimism rises.
In paper (2004) Chang studied an inventory model under a situation in which the supplier provides the purchaser with a permissible delay of payments if the purchaser orders a large quantity. Tripathi (2011) also studied an inventory model with time dependent demand rate under which the supplier provides the purchaser with a permissible delay in payments. This paper is motivated by Chang (2004) and Tripathi (2011) paper extending their model for exponential time dependent demand rate. This study develops an inventory model under which the vendor provides the purchaser with a credit period; if the purchaser orders large quantity. In this chapter, demand rate is taken as exponential time dependent. Shortages are not allowed and effect of the inflation rate has been discussed. We establish an inventory model for deteriorating items if the order quantity is greater than or equal to a predetermined quantity. We then obtain optimal solution for finding optimal order quantity, optimal cycle time and optimal total relevant cost. Numerical examples are given for all different cases. Sensitivity of the variation of different parameters on the optimal solution is also discussed. Mathematica 7 software is used for finding numerical examples.
Assessing Discriminatory Performance of a Binary Logistic Regression Modelsajjalp
The evaluation of fitted binary logistic regression model is very important in assessing the appropriateness of a model for specific purposes. The studyproposesto assess the discriminatory performance of a binary logistic regression model to correctly classify between the cases and non-cases. The discriminatory performance of binary logistic regression model is measured using two approaches. The first approach is the use of fitted binary logistic regression model to correctly predict the subjects that are cases and non-cases,with the help of the parameters sensitivity and specificity. The alternative approach is basedon receiver operatingcharacteristic(ROC)curvefor the fitted binary logistic regression model and then determining the area under the curve (AUC) as a measure of discriminatory performance. The value of sensitivity is observed to be greater than the value of 1-specificity, which signifies suitable discrimination for the mentioned cut point. The area under the curve indicates that there is evidence of reasonable discrimination reported bythe fitted model.
Nonlinear Extension of Asymmetric Garch Model within Neural Network Framework csandit
The importance of volatility for all market partici
pants has led to the development and
application of various econometric models. The most
popular models in modelling volatility are
GARCH type models because they can account excess k
urtosis and asymmetric effects of
financial time series. Since standard GARCH(1,1) mo
del usually indicate high persistence in the
conditional variance, the empirical researches turn
ed to GJR-GARCH model and reveal its
superiority in fitting the asymmetric heteroscedast
icity in the data. In order to capture both
asymmetry and nonlinearity in data, the goal of thi
s paper is to develop a parsimonious NN
model as an extension to GJR-GARCH model and to det
ermine if GJR-GARCH-NN outperforms
the GJR-GARCH model.
This document discusses using survival analysis to model customer churn. It explains what customer lifetime value is and why it is important. It then covers how survival analysis can be used to predict when customers will churn rather than just whether they will churn. The document outlines the methodology used, including data cleaning, defining churn, and graphing results. It also covers parametric survival models and evaluating different survival distributions. The conclusions state that survival analysis provides powerful insights into how attrition risk changes over time.
Time Dependent Quadratic Demand Inventory Models when Delay in Payments is Ac...IJMER
An EOQ model is constructed for deteriorating items with time dependent quadratic demand rate. It is assumed that the deterioration rate is constant and the supplier offers his retailer the credit period to settle the account of the procurement units. To solve the model it is further assumed that shortages are not allowed and the replenishment rate is instantaneous. We have presented the models under two different scenarios, viz., (i)the offered credit period is less than or equal to the cycle time and (ii) the offered credit period by the supplier to the retailer for settling the account is greater than cycle time. The objective is to minimize the retailers total inventory cost. Salvage value is also taken to see its effect on the total cost. A numerical example is given to study the effect of allowable credit period and the total cost of the retailer.
The document provides an overview of inventory management. It discusses the types of inventories including raw materials, work in progress, and finished goods. It describes the functions of inventory including meeting demand, smoothing production, and protecting against stock-outs. It also discusses inventory performance measures, counting systems, key terms, classification systems, and inventory models including economic order quantity, reorder point, and periodic review systems. The document provides insights into effective inventory management.
The document discusses (Q,R) inventory systems which generalize the economic order quantity (EOQ) model to allow for stochastic demand and a reorder point R. Key aspects include:
1) The system uses continuous review with fixed lead times, stochastic demand, ordering costs, holding costs, and shortage costs.
2) Decision variables are the order quantity Q and reorder point R. The total cost considers holding, ordering, and shortage costs.
3) Service level can be measured in two ways - type 1 is the probability of no shortage in the lead time, type 2 is the proportion of demands met from stock.
4) The optimal solution balances minimizing total costs while meeting a specified service level
This document discusses inventory systems and models. It begins by defining inventory and the purposes of holding inventory. It then describes different types of inventory including raw materials, work-in-process, and finished goods. The document outlines inventory system models including multi-period models like the fixed-order quantity and fixed-time period models. It also covers single-period models and inventory costs like holding, ordering, and setup costs. The economic order quantity model and how to calculate optimal order quantity is explained. Finally, examples are provided to demonstrate how to apply the economic order quantity and price-break quantity discount models.
Inventory management and risk pooling are important concepts in supply chain management. General Motors in 1984 had a large logistic network with high inventory levels and transportation costs. Effective inventory management and risk pooling strategies can help companies reduce costs and improve customer service by reducing inventory levels while maintaining the same level of service or improving service with the same inventory. These strategies work best when demands across different locations are negatively correlated as it reduces overall demand variability.
- Inventory constitutes a significant part of current assets for many companies, often around 60% of current assets. Effective inventory management is important to avoid unnecessary costs and ensure profitability.
- There are different types of inventory including raw materials, work in progress, and finished goods. The objectives of inventory management are to maintain optimal inventory levels for smooth operations while minimizing costs.
- An optimum inventory level balances ordering costs, carrying costs, and stock-out costs. Both over-investment and under-investment in inventory can be dangerous for a company. Effective inventory management tracks inventory levels and determines when and how much to order.
This document discusses inventory management concepts including reorder point, order quantity, lead time, demand rate, carrying costs, and ordering costs. The optimal order quantity is derived as Qopt = √(2CoD/Cc) where Co is the ordering cost, D is annual demand, and Cc is the annual carrying cost per unit. The reorder point is calculated as R = dL + zσdL where d is the average daily demand, L is the lead time, σd is the standard deviation of daily demand, and z corresponds to the desired service level. Safety stock, which is added to the reorder point, is calculated as zσdL.
The document discusses the benefits of exercise for both physical and mental health. It notes that regular exercise can reduce the risk of diseases like heart disease and diabetes, improve mood, and reduce feelings of stress and anxiety. The document recommends that adults get at least 150 minutes of moderate exercise or 75 minutes of vigorous exercise per week to gain these benefits.
An application of fuzzy cognitive mapping in optimization of inventory functi...iaemedu
This document summarizes a research paper that developed a fuzzy cognitive mapping approach to optimize inventory levels in small and medium auto component manufacturing enterprises. It presents a 2D matrix model to classify inventory based on cost and consumption behavior. The model segments inventory into 9 cells of high, medium and low cost and consumption. It then uses fuzzy cognitive mapping to develop models of the key concepts and their causal relationships to optimize inventory levels in each segment. The study aims to help small businesses better control their inventory costs.
This document discusses an inventory model that considers shortages and inflation using fuzzy-genetic algorithms and particle swarm optimization. It provides background on fuzzy-genetic algorithms, hybrid genetic algorithms, and particle swarm optimization algorithms. It then discusses inventory models that have considered inflation and reviews related work incorporating inflation and time value of money into inventory models. The purpose is to evaluate integrating inventory decisions using four meta-heuristic fuzzy hybrid algorithms: fuzzy harmony search, fuzzy particle swarm optimization, fuzzy genetic algorithms, and fuzzy simulated annealing.
A Proposed Fuzzy Inventory Management PolicyYogeshIJTSRD
This document proposes a fuzzy inventory management policy to minimize total inventory costs when data is inaccurate or incomplete. It presents a literature review of previous research on fuzzy inventory systems and methods used. The document then discusses conventional economic order quantity models and proposes a mathematical model for an optimal fuzzy inventory policy using fuzzy assignment technique. This proposed model will be applied to inventory data from an automotive service center case study.
This document presents a generalized algorithm for optimizing demand prediction of short life cycle products using Markov chains. It begins with an introduction to short life cycle products and issues with demand forecasting for products with very low shelf lives between 1-2 days. It then discusses using Markov chains to model demand as a random variable. An algorithm is developed using Markov chain transition probabilities and steady state probabilities to determine optimal demand forecast. The algorithm is implemented on a baked product to determine optimal demand. It is presented as a novel technique that can improve demand forecasting for short life cycle supply chains.
An Enhance PSO Based Approach for Solving Economical Ordered Quantity (EOQ) P...IJMER
The Meta-heuristic approaches can provide a sufficiently good solution to an
optimization problem, especially with incomplete or imperfect information and with lower
computational complexity especially for numerical solutions. This paper presents an enhanced PSO
(Particle Swarm Optimization) technique for solving the same problem. Through the PSO performs well
but it may require some more iteration to converge or sometimes many repetitions for the complex
problems. To overcome these problems an enhanced PSO is presented which utilizes the PSO with
double chaotic maps to perform irregular velocity updates which forces the particles to search greater
space for best global solution. Finally the comparison between both algorithms is performed for the
EOQ problem considering deteriorating items, shortages and partially backlogging. The simulation
results shows that the proposed enhanced PSO converges quickly and found much closer solution then
PSO.
Optimal inventory policy under continuous unit cost and risk of sudden obs Hari Rajagopalan
This document summarizes an academic paper that develops two inventory models for products experiencing continuous unit cost decreases and the risk of sudden obsolescence.
The first model assumes a constant probability of obsolescence and declining unit costs. It solves the model for varying and constant lot sizes. Results show the penalty from using a constant lot size approach is negligible.
The second model analyzes a case where the probability of obsolescence is increasing. It considers both constant and decreasing unit costs, solving only for varying lot sizes due to the increasing obsolescence probability making constant lot sizes suboptimal.
INVENTORY MODEL FOR DETERIORATING ITEMS WITH QUADRATIC DEMAND, PARTIAL BACKLO...orajjournal
This article develops an inventory model for deteriorating items with quadratic demand. Shortages are allowed and partially backlogged. The model considers partial trade credit, where suppliers offer delayed payments if order quantities are below a predetermined amount. The objective is to find the optimal cycle time that minimizes total costs, which include ordering, holding, shortage, deterioration, and interest costs and earnings. An mathematical model is presented and the solution process is developed to find the optimal solution. Numerical examples are provided and a sensitivity analysis is conducted to analyze the impact of system parameters on the optimal solution.
An EOQ Model for Weibull Deteriorating Items With Price Dependent DemandIOSR Journals
In the present paper we developed an economic order quantity model for Weibull deteriorating items with price dependent demand rate together with a replenishment policy for profit maximization. The demand rate is a continuous and differentiable function of price. The variable items deteriorate with time shortages are allowed and completely back-ordered. Further it is illustrated with the help of numerical examples.
MODELING THE AUTOREGRESSIVE CAPITAL ASSET PRICING MODEL FOR TOP 10 SELECTED...IAEME Publication
Systematic risk is the uncertainty inherent to the entire market or entire market segment and Unsystematic risk is the type of uncertainty that comes with the company or industry we invest. It can be reduced through diversification. The study generalized for selecting of non -linear capital asset pricing model for top securities in BSE and made an attempt to identify the marketable and non-marketable risk of investors of top companies. The analysis was conducted at different stages. They are Vector auto regression of systematic and unsystematic risk.
1) The document analyzes the relationship between stock-commodity correlation and business cycles from 1991-2014 using regression analysis. It finds the stock-commodity correlation is positively related to periods of economic weakness, as evidenced by a positive relationship with default spread.
2) Regression models show stock-commodity correlation is serially correlated and has a negative relationship with default spread, indicating higher correlation during recessions. However, the effect of real GDP growth and inflation on correlation is unclear.
3) In conclusion, the findings are consistent with prior research that stock-commodity correlation increases during economic downturns, when firms adjust behaviors and investor pessimism rises.
In paper (2004) Chang studied an inventory model under a situation in which the supplier provides the purchaser with a permissible delay of payments if the purchaser orders a large quantity. Tripathi (2011) also studied an inventory model with time dependent demand rate under which the supplier provides the purchaser with a permissible delay in payments. This paper is motivated by Chang (2004) and Tripathi (2011) paper extending their model for exponential time dependent demand rate. This study develops an inventory model under which the vendor provides the purchaser with a credit period; if the purchaser orders large quantity. In this chapter, demand rate is taken as exponential time dependent. Shortages are not allowed and effect of the inflation rate has been discussed. We establish an inventory model for deteriorating items if the order quantity is greater than or equal to a predetermined quantity. We then obtain optimal solution for finding optimal order quantity, optimal cycle time and optimal total relevant cost. Numerical examples are given for all different cases. Sensitivity of the variation of different parameters on the optimal solution is also discussed. Mathematica 7 software is used for finding numerical examples.
Assessing Discriminatory Performance of a Binary Logistic Regression Modelsajjalp
The evaluation of fitted binary logistic regression model is very important in assessing the appropriateness of a model for specific purposes. The studyproposesto assess the discriminatory performance of a binary logistic regression model to correctly classify between the cases and non-cases. The discriminatory performance of binary logistic regression model is measured using two approaches. The first approach is the use of fitted binary logistic regression model to correctly predict the subjects that are cases and non-cases,with the help of the parameters sensitivity and specificity. The alternative approach is basedon receiver operatingcharacteristic(ROC)curvefor the fitted binary logistic regression model and then determining the area under the curve (AUC) as a measure of discriminatory performance. The value of sensitivity is observed to be greater than the value of 1-specificity, which signifies suitable discrimination for the mentioned cut point. The area under the curve indicates that there is evidence of reasonable discrimination reported bythe fitted model.
Nonlinear Extension of Asymmetric Garch Model within Neural Network Framework csandit
The importance of volatility for all market partici
pants has led to the development and
application of various econometric models. The most
popular models in modelling volatility are
GARCH type models because they can account excess k
urtosis and asymmetric effects of
financial time series. Since standard GARCH(1,1) mo
del usually indicate high persistence in the
conditional variance, the empirical researches turn
ed to GJR-GARCH model and reveal its
superiority in fitting the asymmetric heteroscedast
icity in the data. In order to capture both
asymmetry and nonlinearity in data, the goal of thi
s paper is to develop a parsimonious NN
model as an extension to GJR-GARCH model and to det
ermine if GJR-GARCH-NN outperforms
the GJR-GARCH model.
This document discusses using survival analysis to model customer churn. It explains what customer lifetime value is and why it is important. It then covers how survival analysis can be used to predict when customers will churn rather than just whether they will churn. The document outlines the methodology used, including data cleaning, defining churn, and graphing results. It also covers parametric survival models and evaluating different survival distributions. The conclusions state that survival analysis provides powerful insights into how attrition risk changes over time.
Time Dependent Quadratic Demand Inventory Models when Delay in Payments is Ac...IJMER
An EOQ model is constructed for deteriorating items with time dependent quadratic demand rate. It is assumed that the deterioration rate is constant and the supplier offers his retailer the credit period to settle the account of the procurement units. To solve the model it is further assumed that shortages are not allowed and the replenishment rate is instantaneous. We have presented the models under two different scenarios, viz., (i)the offered credit period is less than or equal to the cycle time and (ii) the offered credit period by the supplier to the retailer for settling the account is greater than cycle time. The objective is to minimize the retailers total inventory cost. Salvage value is also taken to see its effect on the total cost. A numerical example is given to study the effect of allowable credit period and the total cost of the retailer.
The document provides an overview of inventory management. It discusses the types of inventories including raw materials, work in progress, and finished goods. It describes the functions of inventory including meeting demand, smoothing production, and protecting against stock-outs. It also discusses inventory performance measures, counting systems, key terms, classification systems, and inventory models including economic order quantity, reorder point, and periodic review systems. The document provides insights into effective inventory management.
The document discusses (Q,R) inventory systems which generalize the economic order quantity (EOQ) model to allow for stochastic demand and a reorder point R. Key aspects include:
1) The system uses continuous review with fixed lead times, stochastic demand, ordering costs, holding costs, and shortage costs.
2) Decision variables are the order quantity Q and reorder point R. The total cost considers holding, ordering, and shortage costs.
3) Service level can be measured in two ways - type 1 is the probability of no shortage in the lead time, type 2 is the proportion of demands met from stock.
4) The optimal solution balances minimizing total costs while meeting a specified service level
This document discusses inventory systems and models. It begins by defining inventory and the purposes of holding inventory. It then describes different types of inventory including raw materials, work-in-process, and finished goods. The document outlines inventory system models including multi-period models like the fixed-order quantity and fixed-time period models. It also covers single-period models and inventory costs like holding, ordering, and setup costs. The economic order quantity model and how to calculate optimal order quantity is explained. Finally, examples are provided to demonstrate how to apply the economic order quantity and price-break quantity discount models.
Inventory management and risk pooling are important concepts in supply chain management. General Motors in 1984 had a large logistic network with high inventory levels and transportation costs. Effective inventory management and risk pooling strategies can help companies reduce costs and improve customer service by reducing inventory levels while maintaining the same level of service or improving service with the same inventory. These strategies work best when demands across different locations are negatively correlated as it reduces overall demand variability.
- Inventory constitutes a significant part of current assets for many companies, often around 60% of current assets. Effective inventory management is important to avoid unnecessary costs and ensure profitability.
- There are different types of inventory including raw materials, work in progress, and finished goods. The objectives of inventory management are to maintain optimal inventory levels for smooth operations while minimizing costs.
- An optimum inventory level balances ordering costs, carrying costs, and stock-out costs. Both over-investment and under-investment in inventory can be dangerous for a company. Effective inventory management tracks inventory levels and determines when and how much to order.
This document discusses inventory management concepts including reorder point, order quantity, lead time, demand rate, carrying costs, and ordering costs. The optimal order quantity is derived as Qopt = √(2CoD/Cc) where Co is the ordering cost, D is annual demand, and Cc is the annual carrying cost per unit. The reorder point is calculated as R = dL + zσdL where d is the average daily demand, L is the lead time, σd is the standard deviation of daily demand, and z corresponds to the desired service level. Safety stock, which is added to the reorder point, is calculated as zσdL.
The document discusses the benefits of exercise for both physical and mental health. It notes that regular exercise can reduce the risk of diseases like heart disease and diabetes, improve mood, and reduce feelings of stress and anxiety. The document recommends that adults get at least 150 minutes of moderate exercise or 75 minutes of vigorous exercise per week to gain these benefits.
An application of fuzzy cognitive mapping in optimization of inventory functi...iaemedu
This document summarizes a research paper that developed a fuzzy cognitive mapping approach to optimize inventory levels in small and medium auto component manufacturing enterprises. It presents a 2D matrix model to classify inventory based on cost and consumption behavior. The model segments inventory into 9 cells of high, medium and low cost and consumption. It then uses fuzzy cognitive mapping to develop models of the key concepts and their causal relationships to optimize inventory levels in each segment. The study aims to help small businesses better control their inventory costs.
This document discusses an inventory model that considers shortages and inflation using fuzzy-genetic algorithms and particle swarm optimization. It provides background on fuzzy-genetic algorithms, hybrid genetic algorithms, and particle swarm optimization algorithms. It then discusses inventory models that have considered inflation and reviews related work incorporating inflation and time value of money into inventory models. The purpose is to evaluate integrating inventory decisions using four meta-heuristic fuzzy hybrid algorithms: fuzzy harmony search, fuzzy particle swarm optimization, fuzzy genetic algorithms, and fuzzy simulated annealing.
A Proposed Fuzzy Inventory Management PolicyYogeshIJTSRD
This document proposes a fuzzy inventory management policy to minimize total inventory costs when data is inaccurate or incomplete. It presents a literature review of previous research on fuzzy inventory systems and methods used. The document then discusses conventional economic order quantity models and proposes a mathematical model for an optimal fuzzy inventory policy using fuzzy assignment technique. This proposed model will be applied to inventory data from an automotive service center case study.
This document presents a generalized algorithm for optimizing demand prediction of short life cycle products using Markov chains. It begins with an introduction to short life cycle products and issues with demand forecasting for products with very low shelf lives between 1-2 days. It then discusses using Markov chains to model demand as a random variable. An algorithm is developed using Markov chain transition probabilities and steady state probabilities to determine optimal demand forecast. The algorithm is implemented on a baked product to determine optimal demand. It is presented as a novel technique that can improve demand forecasting for short life cycle supply chains.
An Enhance PSO Based Approach for Solving Economical Ordered Quantity (EOQ) P...IJMER
The Meta-heuristic approaches can provide a sufficiently good solution to an
optimization problem, especially with incomplete or imperfect information and with lower
computational complexity especially for numerical solutions. This paper presents an enhanced PSO
(Particle Swarm Optimization) technique for solving the same problem. Through the PSO performs well
but it may require some more iteration to converge or sometimes many repetitions for the complex
problems. To overcome these problems an enhanced PSO is presented which utilizes the PSO with
double chaotic maps to perform irregular velocity updates which forces the particles to search greater
space for best global solution. Finally the comparison between both algorithms is performed for the
EOQ problem considering deteriorating items, shortages and partially backlogging. The simulation
results shows that the proposed enhanced PSO converges quickly and found much closer solution then
PSO.
Optimal inventory policy under continuous unit cost and risk of sudden obs Hari Rajagopalan
This document summarizes an academic paper that develops two inventory models for products experiencing continuous unit cost decreases and the risk of sudden obsolescence.
The first model assumes a constant probability of obsolescence and declining unit costs. It solves the model for varying and constant lot sizes. Results show the penalty from using a constant lot size approach is negligible.
The second model analyzes a case where the probability of obsolescence is increasing. It considers both constant and decreasing unit costs, solving only for varying lot sizes due to the increasing obsolescence probability making constant lot sizes suboptimal.
INVENTORY MODEL FOR DETERIORATING ITEMS WITH QUADRATIC DEMAND, PARTIAL BACKLO...orajjournal
This article develops an inventory model for deteriorating items with quadratic demand. Shortages are allowed and partially backlogged. The model considers partial trade credit, where suppliers offer delayed payments if order quantities are below a predetermined amount. The objective is to find the optimal cycle time that minimizes total costs, which include ordering, holding, shortage, deterioration, and interest costs and earnings. An mathematical model is presented and the solution process is developed to find the optimal solution. Numerical examples are provided and a sensitivity analysis is conducted to analyze the impact of system parameters on the optimal solution.
An EOQ Model for Weibull Deteriorating Items With Price Dependent DemandIOSR Journals
In the present paper we developed an economic order quantity model for Weibull deteriorating items with price dependent demand rate together with a replenishment policy for profit maximization. The demand rate is a continuous and differentiable function of price. The variable items deteriorate with time shortages are allowed and completely back-ordered. Further it is illustrated with the help of numerical examples.
This document summarizes an article from the International Journal of Management that discusses the concept of "blue money," which refers to money that is blocked or tied up in obsolete or surplus inventory. The article provides background on blue money and discusses various analytical models for determining optimal inventory levels while minimizing obsolete and surplus items. These models include strict disposal models, deterministic and stochastic usage models, hybrid acquisition-disposal models, and models that consider quantity discounts. The goal of the models is to optimize funds utilization and inventory levels while reducing obsolescence.
Fuzzy Inventory Model for Constantly Deteriorating Items with Power Demand an...iosrjce
IOSR Journal of Mathematics(IOSR-JM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of mathemetics and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications in mathematics. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
CONSIGNMENT INVENTORY SIMULATION MODEL FOR SINGLE VENDOR-MULTI BUYERS IN A SU...IAEME Publication
The focus on the studies of supply chain management has been increasing in
recent years among academics as well as practitioners. In this paper, we present an
extendable multi agent supply chain simulation model for consignment stock inventory
model for a single vendor - multiple buyers. The simulation study dealt the
quantitative measures of performance of consignment stock model with respect to
number of shipments, delay deliveries, number of shipments shifted due to partial
information sharing, average inventory levels of buyer and vendor and joint total
economic cost (JTEC) as key performance parameters. Flexsim V3.0 a discrete event
simulation software is used for simulating the model.
CONSIGNMENT INVENTORY SIMULATION MODEL FOR SINGLE VENDOR-MULTI BUYERS IN A SU...IAEME Publication
The document describes a simulation model of a consignment inventory system for a single vendor and multiple buyers. The simulation model is developed using Flexsim software and evaluates key performance metrics like total cost, inventory levels, shipments, and fill rate. Three models are simulated: one without delays, one with delivery delays, and one with partial information sharing between vendor and buyer. Results show that total cost increases with more buyers but information sharing reduces costs the most, especially for multiple buyers. The number of shipments and delays decreases with information sharing while fill rate increases.
THE OPTIMAL LEVEL OF INTERNATIONAL RESERVES FOR EMERGING MARKET COUNTRIES: A ...Nicha Tatsaneeyapan
This document presents a model for determining the optimal level of international reserves that a small open emerging market economy should hold. The model derives a formula showing that the optimal reserve level depends on factors such as the probability and size of sudden stops in capital flows, the country's risk aversion, and the opportunity cost of holding reserves. When calibrated using data on sudden stops, the model can explain reserve levels of around 9% of GDP for plausible parameter values, similar to averages for emerging markets. However, it has difficulty explaining very high Asian reserve levels without assuming high output costs and risk aversion for sudden stops in those countries.
By combining the wireless network and E-commerce, suppliers can provide a more convenient and quicker
service on a human scale for their customers. The main advantages of such services are their high availability,
independence of physical location and time. Mobile commerce raises a number of security and privacy
challenges. However, security has always been the key issue for the development of mobile E-commerce, which
is more vulnerable than the traditional E-commerce mode. . In order to solve the problem of security gap in the
transmission of mobile E-commerce information, a framework based on J2ME/MIDP is proposed, which
combines double layer encryption schemes, stego-image and secure XML messages which transferred between
the mobile terminal and the server. Our method provide strong secure and invisible communication with high
security and high operating efficiency that compatible with many types of mobile terminal.
This document summarizes a study that empirically models the monthly Treasury bill rates in Ghana from 1998 to 2012. Specifically, it models the rates of the 91-day and 182-day Treasury bills using ARIMA models. For the 91-day bills, the ARIMA 3,1,1 model provided the best fit with a log likelihood value of -328.58. For the 182-day bills, the ARIMA 1,1,0 model fit best with a log likelihood value of -356.50. Residual tests on both models showed the residuals were free from heteroscedasticity and serial correlation. The study aims to determine appropriate time series models for predicting and forecasting future Treasury bill rates in
Perishable Inventory Model with Time Dependent Demand and Partial BackloggingIJERA Editor
The document presents an inventory model for perishable items with time-dependent demand and partial backlogging. Two cases are discussed: 1) when shortages are not allowed and 2) when shortages are partially backlogged. In case 1, the inventory level decreases due to demand only. In case 2, shortages occur when inventory drops to zero and continue until the end of the cycle. The optimal order quantity is determined by minimizing total relevant inventory costs, which include ordering, holding, and shortage costs. Equations are developed to calculate inventory levels over time and determine the optimal order quantity under each case.
Impact of Variable Ordering Cost and Promotional Effort Cost in Deteriorated ...IJAEMSJORNAL
The instantaneous economic order quantity (EOQ) profit optimization model for deteriorating items is introduced for analyzing the impact of variable ordering cost and promotional effort cost for leveraging profit margins in finite planning horizons. The objective of this model is to maximize the net profit so as to determine the order quantity and promotional effort factor. For any given number of replenishment cycles the existence of a unique optimal replenishment schedule are proved and further the concavity of the net profit function of the inventory system in the number of replenishments is established. The numerical analysis shows that an appropriate policy can benefit the retailer, especially for deteriorating items. Finally, sensitivity analyses with respect to the major parameters are also studied to draw managerial decisions in production systems.
International Journal of Mathematics and Statistics Invention (IJMSI)inventionjournals
This document summarizes a research article that models a two-commodity perishable inventory system with finite customer demands. The key aspects of the model are:
1) The system has maximum storage capacities for two commodities and demands originate from a finite population of customers.
2) Inventory levels and number of customers waiting are modeled as a continuous-time Markov chain.
3) Customers make primary demands or retrial demands if inventory is empty, with retrial times following an exponential distribution.
4) The commodities can substitute for each other if one is out of stock. Performance measures like inventory levels and customer wait times are derived.
A Review On Fuzzy Economic Order Quantity Model Under ShortageBrandi Gonzales
This document provides a review of fuzzy economic order quantity (EOQ) inventory models that consider shortage situations. It begins with an introduction to EOQ models and their traditional assumptions. It then discusses how fuzzy set theory has been applied to inventory models to account for uncertain parameters. Several studies have developed fuzzy inventory models where constraints, parameters, or goals are represented as fuzzy numbers or sets. The document reviews literature on fuzzy EOQ models that incorporate either full or partial backlogging during shortages. The purpose is to provide an overview of existing fuzzy inventory models under shortage and identify opportunities for future research addressing real-world supply uncertainties.
This document presents a mathematical model for developing optimal inventory ordering and pricing policies for deteriorating items under inflation and permissible delay in payments. Some key points:
- The model assumes a Weibull distribution for item lifetimes and a power pattern for time-dependent demand.
- Differential equations are used to determine the inventory level at any time, and costs like ordering, deterioration, carrying inventory, interest charged and earned are calculated.
- The net profit rate function is maximized to determine the optimal cycle length and selling price.
- Two cases are considered: when the cycle length is greater than or equal to the permissible delay, and when it is not.
- Numerical examples are provided to illustrate
Similar to Single period inventory model with stochastic demand and partial backlogging (20)
Submission Deadline: 30th September 2022
Acceptance Notification: Within Three Days’ time period
Online Publication: Within 24 Hrs. time Period
Expected Date of Dispatch of Printed Journal: 5th October 2022
MODELING AND ANALYSIS OF SURFACE ROUGHNESS AND WHITE LATER THICKNESS IN WIRE-...IAEME Publication
White layer thickness (WLT) formed and surface roughness in wire electric discharge turning (WEDT) of tungsten carbide composite has been made to model through response surface methodology (RSM). A Taguchi’s standard Design of experiments involving five input variables with three levels has been employed to establish a mathematical model between input parameters and responses. Percentage of cobalt content, spindle speed, Pulse on-time, wire feed and pulse off-time were changed during the experimental tests based on the Taguchi’s orthogonal array L27 (3^13). Analysis of variance (ANOVA) revealed that the mathematical models obtained can adequately describe performance within the parameters of the factors considered. There was a good agreement between the experimental and predicted values in this study.
A STUDY ON THE REASONS FOR TRANSGENDER TO BECOME ENTREPRENEURSIAEME Publication
The study explores the reasons for a transgender to become entrepreneurs. In this study transgender entrepreneur was taken as independent variable and reasons to become as dependent variable. Data were collected through a structured questionnaire containing a five point Likert Scale. The study examined the data of 30 transgender entrepreneurs in Salem Municipal Corporation of Tamil Nadu State, India. Simple Random sampling technique was used. Garrett Ranking Technique (Percentile Position, Mean Scores) was used as the analysis for the present study to identify the top 13 stimulus factors for establishment of trans entrepreneurial venture. Economic advancement of a nation is governed upon the upshot of a resolute entrepreneurial doings. The conception of entrepreneurship has stretched and materialized to the socially deflated uncharted sections of transgender community. Presently transgenders have smashed their stereotypes and are making recent headlines of achievements in various fields of our Indian society. The trans-community is gradually being observed in a new light and has been trying to achieve prospective growth in entrepreneurship. The findings of the research revealed that the optimistic changes are taking place to change affirmative societal outlook of the transgender for entrepreneurial ventureship. It also laid emphasis on other transgenders to renovate their traditional living. The paper also highlights that legislators, supervisory body should endorse an impartial canons and reforms in Tamil Nadu Transgender Welfare Board Association.
BROAD UNEXPOSED SKILLS OF TRANSGENDER ENTREPRENEURSIAEME Publication
Since ages gender difference is always a debatable theme whether caused by nature, evolution or environment. The birth of a transgender is dreadful not only for the child but also for their parents. The pain of living in the wrong physique and treated as second class victimized citizen is outrageous and fully harboured with vicious baseless negative scruples. For so long, social exclusion had perpetuated inequality and deprivation experiencing ingrained malign stigma and besieged victims of crime or violence across their life spans. They are pushed into the murky way of life with a source of eternal disgust, bereft sexual potency and perennial fear. Although they are highly visible but very little is known about them. The common public needs to comprehend the ravaged arrogance on these insensitive souls and assist in integrating them into the mainstream by offering equal opportunity, treat with humanity and respect their dignity. Entrepreneurship in the current age is endorsing the gender fairness movement. Unstable careers and economic inadequacy had inclined one of the gender variant people called Transgender to become entrepreneurs. These tiny budding entrepreneurs resulted in economic transition by means of employment, free from the clutches of stereotype jobs, raised standard of living and handful of financial empowerment. Besides all these inhibitions, they were able to witness a platform for skill set development that ignited them to enter into entrepreneurial domain. This paper epitomizes skill sets involved in trans-entrepreneurs of Thoothukudi Municipal Corporation of Tamil Nadu State and is a groundbreaking determination to sightsee various skills incorporated and the impact on entrepreneurship.
DETERMINANTS AFFECTING THE USER'S INTENTION TO USE MOBILE BANKING APPLICATIONSIAEME Publication
The banking and financial services industries are experiencing increased technology penetration. Among them, the banking industry has made technological advancements to better serve the general populace. The economy focused on transforming the banking sector's system into a cashless, paperless, and faceless one. The researcher wants to evaluate the user's intention for utilising a mobile banking application. The study also examines the variables affecting the user's behaviour intention when selecting specific applications for financial transactions. The researcher employed a well-structured questionnaire and a descriptive study methodology to gather the respondents' primary data utilising the snowball sampling technique. The study includes variables like performance expectations, effort expectations, social impact, enabling circumstances, and perceived risk. Each of the aforementioned variables has a major impact on how users utilise mobile banking applications. The outcome will assist the service provider in comprehending the user's history with mobile banking applications.
ANALYSE THE USER PREDILECTION ON GPAY AND PHONEPE FOR DIGITAL TRANSACTIONSIAEME Publication
Technology upgradation in banking sector took the economy to view that payment mode towards online transactions using mobile applications. This system enabled connectivity between banks, Merchant and user in a convenient mode. there are various applications used for online transactions such as Google pay, Paytm, freecharge, mobikiwi, oxygen, phonepe and so on and it also includes mobile banking applications. The study aimed at evaluating the predilection of the user in adopting digital transaction. The study is descriptive in nature. The researcher used random sample techniques to collect the data. The findings reveal that mobile applications differ with the quality of service rendered by Gpay and Phonepe. The researcher suggest the Phonepe application should focus on implementing the application should be user friendly interface and Gpay on motivating the users to feel the importance of request for money and modes of payments in the application.
VOICE BASED ATM FOR VISUALLY IMPAIRED USING ARDUINOIAEME Publication
The prototype of a voice-based ATM for visually impaired using Arduino is to help people who are blind. This uses RFID cards which contain users fingerprint encrypted on it and interacts with the users through voice commands. ATM operates when sensor detects the presence of one person in the cabin. After scanning the RFID card, it will ask to select the mode like –normal or blind. User can select the respective mode through voice input, if blind mode is selected the balance check or cash withdraw can be done through voice input. Normal mode procedure is same as the existing ATM.
IMPACT OF EMOTIONAL INTELLIGENCE ON HUMAN RESOURCE MANAGEMENT PRACTICES AMONG...IAEME Publication
There is increasing acceptability of emotional intelligence as a major factor in personality assessment and effective human resource management. Emotional intelligence as the ability to build capacity, empathize, co-operate, motivate and develop others cannot be divorced from both effective performance and human resource management systems. The human person is crucial in defining organizational leadership and fortunes in terms of challenges and opportunities and walking across both multinational and bilateral relationships. The growing complexity of the business world requires a great deal of self-confidence, integrity, communication, conflict and diversity management to keep the global enterprise within the paths of productivity and sustainability. Using the exploratory research design and 255 participants the result of this original study indicates strong positive correlation between emotional intelligence and effective human resource management. The paper offers suggestions on further studies between emotional intelligence and human capital development and recommends for conflict management as an integral part of effective human resource management.
VISUALISING AGING PARENTS & THEIR CLOSE CARERS LIFE JOURNEY IN AGING ECONOMYIAEME Publication
Our life journey, in general, is closely defined by the way we understand the meaning of why we coexist and deal with its challenges. As we develop the "inspiration economy", we could say that nearly all of the challenges we have faced are opportunities that help us to discover the rest of our journey. In this note paper, we explore how being faced with the opportunity of being a close carer for an aging parent with dementia brought intangible discoveries that changed our insight of the meaning of the rest of our life journey.
A STUDY ON THE IMPACT OF ORGANIZATIONAL CULTURE ON THE EFFECTIVENESS OF PERFO...IAEME Publication
The main objective of this study is to analyze the impact of aspects of Organizational Culture on the Effectiveness of the Performance Management System (PMS) in the Health Care Organization at Thanjavur. Organizational Culture and PMS play a crucial role in present-day organizations in achieving their objectives. PMS needs employees’ cooperation to achieve its intended objectives. Employees' cooperation depends upon the organization’s culture. The present study uses exploratory research to examine the relationship between the Organization's culture and the Effectiveness of the Performance Management System. The study uses a Structured Questionnaire to collect the primary data. For this study, Thirty-six non-clinical employees were selected from twelve randomly selected Health Care organizations at Thanjavur. Thirty-two fully completed questionnaires were received.
Living in 21st century in itself reminds all of us the necessity of police and its administration. As more and more we are entering into the modern society and culture, the more we require the services of the so called ‘Khaki Worthy’ men i.e., the police personnel. Whether we talk of Indian police or the other nation’s police, they all have the same recognition as they have in India. But as already mentioned, their services and requirements are different after the like 26th November, 2008 incidents, where they without saving their own lives has sacrificed themselves without any hitch and without caring about their respective family members and wards. In other words, they are like our heroes and mentors who can guide us from the darkness of fear, militancy, corruption and other dark sides of life and so on. Now the question arises, if Gandhi would have been alive today, what would have been his reaction/opinion to the police and its functioning? Would he have some thing different in his mind now what he had been in his mind before the partition or would he be going to start some Satyagraha in the form of some improvement in the functioning of the police administration? Really these questions or rather night mares can come to any one’s mind, when there is too much confusion is prevailing in our minds, when there is too much corruption in the society and when the polices working is also in the questioning because of one or the other case throughout the India. It is matter of great concern that we have to thing over our administration and our practical approach because the police personals are also like us, they are part and parcel of our society and among one of us, so why we all are pin pointing towards them.
A STUDY ON TALENT MANAGEMENT AND ITS IMPACT ON EMPLOYEE RETENTION IN SELECTED...IAEME Publication
The goal of this study was to see how talent management affected employee retention in the selected IT organizations in Chennai. The fundamental issue was the difficulty to attract, hire, and retain talented personnel who perform well and the gap between supply and demand of talent acquisition and retaining them within the firms. The study's main goals were to determine the impact of talent management on employee retention in IT companies in Chennai, investigate talent management strategies that IT companies could use to improve talent acquisition, performance management, career planning and formulate retention strategies that the IT firms could use. The respondents were given a structured close-ended questionnaire with the 5 Point Likert Scale as part of the study's quantitative research design. The target population consisted of 289 IT professionals. The questionnaires were distributed and collected by the researcher directly. The Statistical Package for Social Sciences (SPSS) was used to collect and analyse the questionnaire responses. Hypotheses that were formulated for the various areas of the study were tested using a variety of statistical tests. The key findings of the study suggested that talent management had an impact on employee retention. The studies also found that there is a clear link between the implementation of talent management and retention measures. Management should provide enough training and development for employees, clarify job responsibilities, provide adequate remuneration packages, and recognise employees for exceptional performance.
ATTRITION IN THE IT INDUSTRY DURING COVID-19 PANDEMIC: LINKING EMOTIONAL INTE...IAEME Publication
Globally, Millions of dollars were spent by the organizations for employing skilled Information Technology (IT) professionals. It is costly to replace unskilled employees with IT professionals possessing technical skills and competencies that aid in interconnecting the business processes. The organization’s employment tactics were forced to alter by globalization along with technological innovations as they consistently diminish to remain lean, outsource to concentrate on core competencies along with restructuring/reallocate personnel to gather efficiency. As other jobs, organizations or professions have become reasonably more appropriate in a shifting employment landscape, the above alterations trigger both involuntary as well as voluntary turnover. The employee view on jobs is also afflicted by the COVID-19 pandemic along with the employee-driven labour market. So, having effective strategies is necessary to tackle the withdrawal rate of employees. By associating Emotional Intelligence (EI) along with Talent Management (TM) in the IT industry, the rise in attrition rate was analyzed in this study. Only 303 respondents were collected out of 350 participants to whom questionnaires were distributed. From the employees of IT organizations located in Bangalore (India), the data were congregated. A simple random sampling methodology was employed to congregate data as of the respondents. Generating the hypothesis along with testing is eventuated. The effect of EI and TM along with regression analysis between TM and EI was analyzed. The outcomes indicated that employee and Organizational Performance (OP) were elevated by effective EI along with TM.
INFLUENCE OF TALENT MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE A STUD...IAEME Publication
By implementing talent management strategy, organizations would have the option to retain their skilled professionals while additionally working on their overall performance. It is the course of appropriately utilizing the ideal individuals, setting them up for future top positions, exploring and dealing with their performance, and holding them back from leaving the organization. It is employee performance that determines the success of every organization. The firm quickly obtains an upper hand over its rivals in the event that its employees having particular skills that cannot be duplicated by the competitors. Thus, firms are centred on creating successful talent management practices and processes to deal with the unique human resources. Firms are additionally endeavouring to keep their top/key staff since on the off chance that they leave; the whole store of information leaves the firm's hands. The study's objective was to determine the impact of talent management on organizational performance among the selected IT organizations in Chennai. The study recommends that talent management limitedly affects performance. On the off chance that this talent is appropriately management and implemented properly, organizations might benefit as much as possible from their maintained assets to support development and productivity, both monetarily and non-monetarily.
A STUDY OF VARIOUS TYPES OF LOANS OF SELECTED PUBLIC AND PRIVATE SECTOR BANKS...IAEME Publication
Banking regulations act of India, 1949 defines banking as “acceptance of deposits for the purpose of lending or investment from the public, repayment on demand or otherwise and withdrawable through cheques, drafts order or otherwise”, the major participants of the Indian financial system are commercial banks, the financial institution encompassing term lending institutions. Investments institutions, specialized financial institution and the state level development banks, non banking financial companies (NBFC) and other market intermediaries such has the stock brokers and money lenders are among the oldest of the certain variants of NBFC and the oldest market participants. The asset quality of banks is one of the most important indicators of their financial health. The Indian banking sector has been facing severe problems of increasing Non- Performing Assets (NPAs). The NPAs growth directly and indirectly affects the quality of assets and profitability of banks. It also shows the efficiency of banks credit risk management and the recovery effectiveness. NPA do not generate any income, whereas, the bank is required to make provisions for such as assets that why is a double edge weapon. This paper outlines the concept of quality of bank loans of different types like Housing, Agriculture and MSME loans in state Haryana of selected public and private sector banks. This study is highlighting problems associated with the role of commercial bank in financing Small and Medium Scale Enterprises (SME). The overall objective of the research was to assess the effect of the financing provisions existing for the setting up and operations of MSMEs in the country and to generate recommendations for more robust financing mechanisms for successful operation of the MSMEs, in turn understanding the impact of MSME loans on financial institutions due to NPA. There are many research conducted on the topic of Non- Performing Assets (NPA) Management, concerning particular bank, comparative study of public and private banks etc. In this paper the researcher is considering the aggregate data of selected public sector and private sector banks and attempts to compare the NPA of Housing, Agriculture and MSME loans in state Haryana of public and private sector banks. The tools used in the study are average and Anova test and variance. The findings reveal that NPA is common problem for both public and private sector banks and is associated with all types of loans either that is housing loans, agriculture loans and loans to SMES. NPAs of both public and private sector banks show the increasing trend. In 2010-11 GNPA of public and private sector were at same level it was 2% but after 2010-11 it increased in many fold and at present there is GNPA in some more than 15%. It shows the dark area of Indian banking sector.
EXPERIMENTAL STUDY OF MECHANICAL AND TRIBOLOGICAL RELATION OF NYLON/BaSO4 POL...IAEME Publication
An experiment conducted in this study found that BaSO4 changed Nylon 6's mechanical properties. By changing the weight ratios, BaSO4 was used to make Nylon 6. This Researcher looked into how hard Nylon-6/BaSO4 composites are and how well they wear. Experiments were done based on Taguchi design L9. Nylon-6/BaSO4 composites can be tested for their hardness number using a Rockwell hardness testing apparatus. On Nylon/BaSO4, the wear behavior was measured by a wear monitor, pinon-disc friction by varying reinforcement, sliding speed, and sliding distance, and the microstructure of the crack surfaces was observed by SEM. This study provides significant contributions to ultimate strength by increasing BaSO4 content up to 16% in the composites, and sliding speed contributes 72.45% to the wear rate
ROLE OF SOCIAL ENTREPRENEURSHIP IN RURAL DEVELOPMENT OF INDIA - PROBLEMS AND ...IAEME Publication
The majority of the population in India lives in villages. The village is the back bone of the country. Village or rural industries play an important role in the national economy, particularly in the rural development. Developing the rural economy is one of the key indicators towards a country’s success. Whether it be the need to look after the welfare of the farmers or invest in rural infrastructure, Governments have to ensure that rural development isn’t compromised. The economic development of our country largely depends on the progress of rural areas and the standard of living of rural masses. Village or rural industries play an important role in the national economy, particularly in the rural development. Rural entrepreneurship is based on stimulating local entrepreneurial talent and the subsequent growth of indigenous enterprises. It recognizes opportunity in the rural areas and accelerates a unique blend of resources either inside or outside of agriculture. Rural entrepreneurship brings an economic value to the rural sector by creating new methods of production, new markets, new products and generate employment opportunities thereby ensuring continuous rural development. Social Entrepreneurship has the direct and primary objective of serving the society along with the earning profits. So, social entrepreneurship is different from the economic entrepreneurship as its basic objective is not to earn profits but for providing innovative solutions to meet the society needs which are not taken care by majority of the entrepreneurs as they are in the business for profit making as a sole objective. So, the Social Entrepreneurs have the huge growth potential particularly in the developing countries like India where we have huge societal disparities in terms of the financial positions of the population. Still 22 percent of the Indian population is below the poverty line and also there is disparity among the rural & urban population in terms of families living under BPL. 25.7 percent of the rural population & 13.7 percent of the urban population is under BPL which clearly shows the disparity of the poor people in the rural and urban areas. The need to develop social entrepreneurship in agriculture is dictated by a large number of social problems. Such problems include low living standards, unemployment, and social tension. The reasons that led to the emergence of the practice of social entrepreneurship are the above factors. The research problem lays upon disclosing the importance of role of social entrepreneurship in rural development of India. The paper the tendencies of social entrepreneurship in India, to present successful examples of such business for providing recommendations how to improve situation in rural areas in terms of social entrepreneurship development. Indian government has made some steps towards development of social enterprises, social entrepreneurship, and social in- novation, but a lot remains to be improved.
OPTIMAL RECONFIGURATION OF POWER DISTRIBUTION RADIAL NETWORK USING HYBRID MET...IAEME Publication
Distribution system is a critical link between the electric power distributor and the consumers. Most of the distribution networks commonly used by the electric utility is the radial distribution network. However in this type of network, it has technical issues such as enormous power losses which affect the quality of the supply. Nowadays, the introduction of Distributed Generation (DG) units in the system help improve and support the voltage profile of the network as well as the performance of the system components through power loss mitigation. In this study network reconfiguration was done using two meta-heuristic algorithms Particle Swarm Optimization and Gravitational Search Algorithm (PSO-GSA) to enhance power quality and voltage profile in the system when simultaneously applied with the DG units. Backward/Forward Sweep Method was used in the load flow analysis and simulated using the MATLAB program. Five cases were considered in the Reconfiguration based on the contribution of DG units. The proposed method was tested using IEEE 33 bus system. Based on the results, there was a voltage profile improvement in the system from 0.9038 p.u. to 0.9594 p.u.. The integration of DG in the network also reduced power losses from 210.98 kW to 69.3963 kW. Simulated results are drawn to show the performance of each case.
APPLICATION OF FRUGAL APPROACH FOR PRODUCTIVITY IMPROVEMENT - A CASE STUDY OF...IAEME Publication
Manufacturing industries have witnessed an outburst in productivity. For productivity improvement manufacturing industries are taking various initiatives by using lean tools and techniques. However, in different manufacturing industries, frugal approach is applied in product design and services as a tool for improvement. Frugal approach contributed to prove less is more and seems indirectly contributing to improve productivity. Hence, there is need to understand status of frugal approach application in manufacturing industries. All manufacturing industries are trying hard and putting continuous efforts for competitive existence. For productivity improvements, manufacturing industries are coming up with different effective and efficient solutions in manufacturing processes and operations. To overcome current challenges, manufacturing industries have started using frugal approach in product design and services. For this study, methodology adopted with both primary and secondary sources of data. For primary source interview and observation technique is used and for secondary source review has done based on available literatures in website, printed magazines, manual etc. An attempt has made for understanding application of frugal approach with the study of manufacturing industry project. Manufacturing industry selected for this project study is Mahindra and Mahindra Ltd. This paper will help researcher to find the connections between the two concepts productivity improvement and frugal approach. This paper will help to understand significance of frugal approach for productivity improvement in manufacturing industry. This will also help to understand current scenario of frugal approach in manufacturing industry. In manufacturing industries various process are involved to deliver the final product. In the process of converting input in to output through manufacturing process productivity plays very critical role. Hence this study will help to evolve status of frugal approach in productivity improvement programme. The notion of frugal can be viewed as an approach towards productivity improvement in manufacturing industries.
A MULTIPLE – CHANNEL QUEUING MODELS ON FUZZY ENVIRONMENTIAEME Publication
In this paper, we investigated a queuing model of fuzzy environment-based a multiple channel queuing model (M/M/C) ( /FCFS) and study its performance under realistic conditions. It applies a nonagonal fuzzy number to analyse the relevant performance of a multiple channel queuing model (M/M/C) ( /FCFS). Based on the sub interval average ranking method for nonagonal fuzzy number, we convert fuzzy number to crisp one. Numerical results reveal that the efficiency of this method. Intuitively, the fuzzy environment adapts well to a multiple channel queuing models (M/M/C) ( /FCFS) are very well.
2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
onetime supply of the items per day and the demand is probabilistic. If the order quantity is
larger than the realised demand, the items which are left over at the end of period are sold at a
salvage value or disposed off. In the last several years, many researchers have given
considerable attention to the situation where the demand rate is dependent on the level of the
on-hand inventory.
In this paper a closed form is introduced. There are many benefits of having a closed-
form approximate solution. A closed-form solution clearly demonstrates the sensitivity of
solutions to input parameters. It can also be embedded into more complicated models to add
tractability. Closed-form approximations are also useful tools in practice, since they are easier
to implement and use on an ongoing basis. When the price increase, its components is
anticipated. In this situation companies may purchase large amounts of items without
considering related costs. However ordering large quantities would not be economical if the
items in the inventory system deteriorate. Also demand depends on the stock level. There are
many benefits of having a closed-form approximate solution, such as the one we develop, for
a problem which would otherwise require numerical optimization. A closed-form solution
clearly demonstrates the sensitivity of solutions to input parameters. It can also be embedded
into more complicated models to add tractability.
SCBZ property is defined as random variable having survival function Z is said to
possess SCBZ property if and only if
Where represents the valve of the original parameter and represent its changed
valve. In this paper three cases are discussed. In the first case, problem is studied by
neglecting the salvage loss for the left over units but for the case when a significant holding
cost ϕ1 per unit time is incurred. In the second case, the inventory holding alone undergoes a
change which is satisfying the SCBZ property. In the third case, the shortage cost with partial
backlogging is discussed. In this paper a planned shortage models is studied, in which there
exit time-dependent and time-independent shortage costs. Theses concept are discussed in
form of case 1 and case 3
Finally the optimal solution is derived. This model is verified
using the numerical illustration.
2. LITERATURE REVIEW
The basic Newsboy inventory model has been discussed in Hansmann.F [1]. A partial
review of the Newsboy problem has been conducted in a textbook by Silver et.al [11].
Nicholas A.N et.al [3] had shown how the statistical inference equivalence principle could be
employed in a particular case of finding the effective statistical solution for the multiproduct
Newsboy problem with constraints.
R. Gullu et.al [17] had examined dynamic deterministic demand over finite-horizon
and non-stationary disruption probabilities, and related to the optimal base-stock level of the
newsboy fractal. M. Dada et.al [18] had extended the stochastic-demand newsboy model to
96
3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
include multiple unreliable suppliers. L.V Snyder et.al [19] had simulated inventory systems with
supply disruptions and demand uncertainty. Also his paper shows a study on how the two sources
of uncertainty can cause different inventory designs to be optimal.
Traditional Newsboy models focus on risk neutral decisions makers (i.e) optimizing the
expected profit or cost. But experimental finding states that the derivatives of actual quantity
ordered from the optimal quantity are derived from the classical Newsboy model. Guinquing et.al
[8] had considered the Newsboy problem with range information. In Jixan Xiao et.al [9] a
stochastic Newsboy inventory control model was considered and it was solved on multivariate
product order and pricing. P.S Sheik Uduman [10] had used demand distribution to satisfy SCBZ
property and to depict the demand for the Newspaper. Also the optimal order quantity was
derived in his paper.
In this paper a well known property know as SCBZ Property is used. This property was
introduced by Raja Rao. B et.al [13] and it is an extension of the Lack of Memory Property. A
review over his paper shows that many distributions like Exponential distribution, Linear Hazard
rate distribution, Krane family, and Gompertz distribution possess this property. The author in his
papers showed that SCBZ property is preserved under the formation of series systems.
Furthermore, it had been shown that the mean residual life function of a random variable
possessing SCBZ property takes a simple computational form.
A recent work on Newsboy model is given in Dowlath et.al [2], [15]. Here the author had
discussed a models involving the problem in two levels of demand for a particular supply R1 and
R2.
Srichandan Mishra et.al [14] had investigated the inventory system for perishable items under
inflationary condition where the demand rate was a function of inflation and considered two
parameter Weibull distributions for deterioration.
Finally this paper involves the optimality of the expected cost for varying demand involving
either shortage or holding. These model are dealt in detail in the form of three cases.
2 Assumptions and Notations
= The cost of each unit produced but not sold called holding cost.
= The shortage cost arising due to each unit of unsatisfied demand.
= Random variables denoting the demand
= Supply level and is the optimal value of .
T = Total Time interval
t1 , t2 = Time interval with respect to the shortage and holding cost
= Total cost per unit time
Q = Random variable denoting the individual demands.
= The probability density function.
ˆ
= Supply level and Z is the optimal value of .
= probability density functions when ≤ .
= probability density function when > .
θ1 = parameter prior to the truncation point
θ2 = parameter posterior to the truncation Point .
parameter of the maximum likelihood estimator
97
4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
3. BASIC MODEL
Many researchers have suggested that the probability of achieving a target profit
level is a realistic managerial objective in the Newsboy problem. The single period, single
item newsboy problem with limited distribution information like range, mean, mode
variance has been widely studied. Hansmann[1] had given a different perspective of this
Newsboy model and the model discussed is given below
Total cost incurred during the interval T given in the basic model is
(1)
Where and are defined as in figure 1
Therefore the expected total cost function per unit time is given in the form
Z ∞Z 1t ∞ (Q − Z ) 2t
ψ ( Z ) = ϕ ∫ (Z − Q ) f(Q) dQ + ϕ ∫ f (Q ) dQ + ϕ ∫ f (Q ) dQ
10 1Z 2 T 2Z 2 T
(2)
t1 Z
From Hansmann[1] we have =
T Q
t
2 =Q−Z (3)
T Q
To find optimal ,
()
ˆ
dψ Z
= 0 was formulated in Hansmann [1] which resulted in the
dZ
following equation.
ϕ2
( ˆ
ψ (z ) = P Q ≤ Z =
ˆ ) ϕ1 + ϕ 2
(4)
ˆ ()
Given the probability distribution of the demand Q using the expression ψ Z , the
ˆ
optimal Z can be determined. This is the basic Newsboy problem, as discussed by
Hanssmann[1].
98
5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
Figure (I)
The uncertainty here is related to a well known property called as SCBZ Property.
The distribution here satisfies the SCBZ property.
Accordingly SCBZ property is defined by the pdf as
θ 1e − θ Q 1
; Q ≤ Q0
f (Q ) = Q (θ − θ )
e
0 2 1
θ 2 e −θ Q ;
2
Q > Q0
(5)
where is constant denoting truncation point .
The probability distribution function is denoted as
(6)
Sathiyamoorthy and Parthasarthy [13] introduced the concept of SCBZ property in
inventory. The probability distribution function defined above satisfies the SCBZ property
under the above assumptions and the optimal is derived.
Now, the total expected cost is written as
Z
ψ (Z) = ϕ 1 ∫ (Z − Q ) f(Q) dQ + ϕ 1 ∫
∞
Z t1 ∞
f (Q ) dQ + ϕ 2 ∫
(Q − Z ) t 2 f (Q ) dQ
0 Z 2 T Z 2 T
(7)
99
6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
Equation (7) can be rewritten as
ψ (z ) = ϕ1 k 1 + ϕ 1 k 2 + ϕ 2 k 3 (8)
Where
Z
k1 = ∫ (Z
0
− Q ) f(Q) dQ
∞
Z t1
k 2 = ∫ 2
Z T
f (Q ) dQ
∞
(Q − Z) t2
k3 = ∫
Z 2 T
f (Q ) dQ
(9)
In this paper equation (9) is dealt in form of three cases due to the complexity involved while
using the limit.
4. MODEL I
4.1 CASE 1: OPTIMALITY OF TOTAL EXPECTED COST USING SCBZ
PROPERTY
When the optimality similar to the one discussed by Srichandan et.al [14] is studied.
During the interval (0, t1), the inventory level neither decreases, nor increases due to the
demand of the customers being fully satisfied which is shown in the figure(I). During the
interval (t1, t2) the inventory decreases till B' due to the aspect of inflation of demand for a
particular product. After t2, the level of inventory reaches t after which shortage is allowed
during (t2, T) where T is from (0', B'). Srichandan et.al [14] had investigated the situation
when shortage are allowed and partially backlogged. Here in this stage truncation point Q0
satisfies the SCBZ Property. Then the optimality involving the holding cost is as follows,
Qo z
ψ (z ) = ϕ 1
∫ (Z − Q ) f (Q, θ ) dQ + ∫ (Z − Q ) f (Q, θ ) dQ
1 2
0 Qo
Z t Qo ∞
Z t1
+ ϕ1 ∫ 1
f (Q, θ 1 ) dQ + ∫ f (Q, θ 2 ) dQ
Z 2 T 2 T
Qo
(Q − Z ) t 2
Qo Z
(Q − Z ) t 2
+ ϕ2 ∫
0 f (Q, θ 1 ) dQ + ∫ f (Q, θ 2 ) dQ
2 T Qo
2 T
(10)
100
7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
From (5) we substitute value for f ( Q ,θ1) and f ( Q ,θ2) in (9) we get
Qo z
ψ (Z ) = ϕ 1
∫ (Z − Q ) θ 1 e − θ Q dQ +
1
∫ (Z − Q )e
Q 0 (θ 2 − θ 1 )
θ 2 e − θ Q dQ
2
0 Qo
Qo Z t ∞
Z t 1 Q 0 (θ 2 − θ 1 )
+ ϕ1 ∫ 1
θ e − θ 1Q dQ + ∫ e θ 2 e − θ 2 Q dQ
Z 2 T 1 2 T
Qo
(Q − Z ) t 2
Q0 Z
(Q − Z ) t 2 Q
+ ϕ2 ∫
0 θ 1 e − θ Q dQ + 1
∫ e 0 (θ 2 − θ1 )
θ 2 e − θ Q dQ
2
2 T Qo
2 T
(11)
Q 0 Z Qo
∫ θ 1 Z e − θ Q dQ − θ 1 ∫ Q e − θ Q dQ + θ 2 ∫ Ze Q
1 1 0 (θ 2 − θ 1 )
e −θ Q 2
0 0
ψ (Z ) = ϕ 1 Qo
Z
− θ Q e Q (θ − θ ) e − θ Q dQ
2 ∫
0 2 1 2
Q o
Z t Qo
Z t1
∞
+ ϕ1 1
θ 1 ∫ e − θ 1Q dQ + θ 2 ∫ e Q 0 (θ 2 − θ 1 ) e − θ 2 Q dQ
2 T 2 T
Z Qo
t 2 Q −θ Q t
∫ θ1e dQ - 2 θ1 Z ∫ 1 e −θ Q dQ
0 Q0
1
1
T 0 T 0 Q
+ ϕ2
t Z
t Z
+ 2 θ 2 ∫ e Q (θ −θ ) e −θ Q dQ - 2 θ 2 ∫ Z e Q (θ −θ ) e −θ Q dQ
0 2 1 2 0 2 1 2
(12) T T 2
Qo Qo
(13)
Therefore we get
101
8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
(14)
The following assumption is considered while solving (14) that the lead time is zero
and single period inventory model will be used with the time horizon considered to as finite.
When the supply and the level of inventory is same and all the other cases are considered
zero. Since analytical solutions to the problem are difficult to obtain, Equation (14) is solved
using the Maple 13. Final solution of the above equation is given as,
(15)
Now, the optimal solution here is obtained using the numerical illustration by
substituting the value for is obtained in form of Numerical illustration1
shown below.
The Table1 and Figure1, shows the numerical illustration for the case 1 when the
shortage cost is permitted in the interval .
4.1.1. Numerical illustration
In this Numerical illustration the value for Z= 1, 2,..6,
is evaluated and the graph representing these values
are given below which is obtained to get the optimal expected cost . This Numerical
illustration provides a clear idea of the increased profit form curve.
Z θ1 Q0 1/θ1 eθ1 eθ1Q0 eθ1 Q0 Z/eθ1Q0 1/θ1*eθ1Q0 Q0/eθ1Q0 ( )
1 0.5 5 2 1.648721 12.18249 8.243606 0.121306 0.16417 0.410425 -0.54671
2 1 10 1 2.718282 22026.47 27.18282 0.073576 4.54E-05 0.000454 0.926924
3 1.5 15 0.666 4.481689 5.91E+09 67.22534 0.044626 1.13E-10 2.54E-09 2.288707
4 2 20 0.5 7.389056 2.35E+17 147.7811 0.027067 2.12E-18 8.5E-17 3.472933
5 2.5 25 0.4 12.18249 1.39E+27 304.5623 0.016417 2.88E-28 1.8E-26 4.583583
6 3 30 0.333 20.08554 1.14E+26 401.7107 0.014936 2.92E-27 1.75E-25 5.651731
Table 1
102
9. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
Figure 1
FIGURE1
Supply against the is shown in the Figure1. When the supply size is increased
according to the demand then there a profit or otherwise instantaneous increase in the is
noted. This model shows how a sharp increase in the cost curve is obtained.
4.1.2 : Numerical Illustration
A comparative study was carried out with the existing data value available
from P.S Sheik Uduman [10] to check the optimality if the cost curve unique. Table 2 and
Figure 2 shows the existence of the profit curve. The shortage graph is seen below. When
there is shortage in the supply size then there is a decrease in the expected cost which leads to
the profit loss for the company.
Z θ1 Q0 eθ 1 eθ1Q0 eθ1*Q0 1/θ1 Z/eθ1*Q0 1/θ1*eθ1Q0 Q0/eθ1Q0
0.5 0.5 5 1.64872 12.18249 8.243606 2 0.060653 0.164169997 0.410425 -0.98606
0.7 1 10 2.71828 22026.47 27.18282 1 0.025752 4.53999E-05 0.000454 -0.32525
0.9 1.5 15 4.48168 5.91E+09 67.22534 0.6666 0.013388 1.12793E-10 2.54E-09 0.219946
1.1 2 20 7.38905 2.35E+17 147.7811 0.5 0.007443 2.12418E-18 8.5E-17 0.592557
1.3 2.5 25 12.1824 1.39E+27 304.5623 0.4 0.004268 2.87511E-28 1.8E-26 0.895732
1.5 3 20 20.0855 1.14E+26 401.7107 0.3333 0.003734 2.91884E-27 1.75E-25 1.162933
Table 2
103
10. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
[1]
[2]
3.0
COST
2.5
2.0
1.5
CTED
1.0
0.5
EXPE
0.0
-0.5
-1.0
1.6
1.4
C
1.2
1.0
0.8
S B
U 0.6
PP 0.4
LY
SI
ZE
Comparative graph
Figure 2
[1] Curve as in the Existing model P. Sheik Uduman [10]
[2 New curve for model I
FIGURE 2
A comparative study on the optimal expected profit curve with that of a P.S
Sheik Uduman [10] is shown in form of the Figure 2. It observed that there is an an
increase in the profit from negative to positive value leading to an instantaneous increase
in supply size and increased profit. The curve shows the optimality and validity of this
model.
4.2 CASE 2: OPTIMALITY FOR HOLDING COST USING SCBZ PROPERTY
The units of items unsold at the end of the season if any are removed from the
retail shop to the outlet discount store and are sold at a lowest price than the cost price of
the item which is known as the salvage loss. A model is developed to study this problem.
In Case 2, a situation is discussed when there is a holding cost occurred and there is no
shortage allowed. This constitute an exponential family. In this case the attention can be
restricted to the consideration of the part when the holding cost ϕ1 is involved, in which
case there is an immense loss to the organisation leading to the setup cost and the cost of
holding the item.
Now the expected holding cost is given as follows and this cost is truncated before
and after the particular event in the interval (0,Q)
104
11. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
Q O Q
ψ 1
(Z ) = ϕ 1
∫ (Z − Q
) f (Q, θ ) dQ + ∫ (Z − Q ) f (Q, θ ) dQ
0 QO
QO
Z t1 Q
Z t1
+ ϕ1
∫ f (Q, θ ) dQ + ∫ f (Q, θ ) dQ
0 2 T Q0
2 T
QO Q
(16)
ψ 1 (Z ) = ϕ 1
∫ (Z − Q )θ 1
e − θ Q dQ + 1
∫ (Z − Q ) e
Q 0 (θ 2 − θ 1 )
θ 2 e −θ 2Q
dQ
0 QO
Z t Q O
Z t1 Q
+ ϕ1 1 ∫ θ 1 e − θ Q dQ +
2T
1
∫ eQ 0 ( θ 2 − θ1 )
θ 2 e −θ Q dQ
2
0 2T QO
Q O Q
= ϕ1 θ1 ∫ (Z − Q)e −θ Q dQ + e Q (θ −θ ) θ 2 ∫ (Z − Q)e −θ Q dQ
1
0 2 1 2
0 Q O
Z t1 Q − θ Q O Q
+ ϕ1 θ 1 ∫ e dQ + e Q
1 0 (θ 2 − θ1 )
θ2 ∫ e −θ Q dQ
2
2 T 0 QO
(17)
Qo Q
Z e − θ Q dQ − θ 1 ∫ Q e − θ Q dQ + θ 2 ∫ Ze Q
1 1 0 (θ 2 − θ1 )
e − θ Q dQ
2
Qo
∫
0
ψ 1 (Z ) = ϕ 1 θ 1 Q
Qo
0
− θ 2 ∫ Qe Q 0 (θ 2 − θ 1 )
e − θ Q dQ
2
Qo
Z t1 Q
Z t1
o Q
+ ϕ1
2 T θ 1 ∫ e − θ Q dQ + θ 2 1
∫ eQ 0 (θ 2 − θ 1 )
e −θ 2Q
dQ
0 2 T Qo
Z −θ Q 1
ψ 1 (Z ) = ϕ 1 θ 1 (
(e − 1)) − Qe −θ Q − ( e −θ Q − 1) + e − Q θ Q
1 0
1 0 2 0 0 1
θ1 θ1
1
ψ 1 (Z ) = ϕ 1 ( Z ( e −θ Q − 1)) −
1 0
( e −θ Q − 1)
2 0
θ1 (18)
4.2.1 Numerical Illustration:
In this example a load of items is taken from 1tonnes to 6 tonnes were the θ1 is varied
accordingly and the result shows a increase of the expected profit curve which is given by
Table 3 and Figure 3
105
12. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
Z θ1 1/θ1 Q0 eθ1 eθ1Q0 Z(eθ1Q0-1) (eθ1Q0-1) (eθ1Q0-1)1/θ1
1 0.05 20 5 1.051271 1.284025 0.284025 0.284025 5.680508 -5.39648
2 0.03 33.33333 10 1.030455 1.349859 0.699718 0.349859 11.66196 -11.3121
3 0.07 14.28571 15 1.072508 2.857651 5.572953 1.857651 26.53787 -24.6802
4 0.09 11.11111 20 1.094174 6.049647 20.19859 5.049647 56.10719 -51.0575
5 0.08 12.5 25 1.083287 7.389056 31.94528 6.389056 79.8632 -73.4741
6 0.09 11.11111 20 1.094174 6.049647 30.29788 5.049647 56.10719 -51.0575
Table 3
Figure 3
Figure 4
A diagrammatic representation of the state when the supply size is excess then it rules
out the total expected cost and this state of condition aroused is shown in the above diagram.
106
13. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
4.3 CASE 3: OPTIMALITY FOR SHORTAGE COST CURVE
Economic Order Quantity for Planned Shortages (EOQB) model is illustrated in very
few text books (Anderson et.al [23], Gupta et.al [22], Narsimhan et.al[24], Pannerselvam,
[27] Sharma S.D[26] and Vora N.D [25] ). In literature, few authors use term "back ordering"
while many authors prefer "planned shortages" to describe this model. Both terms carry the
meaning but back ordering is more preferable as it deal with the cost of back ordering. For
the model, replenishment is done at a point when stock reaches maximum planned shortages
(negative inventory).
Notable work is observed in partial backordering. The backlogging phenomenon is
modeled without using the backorder cost and the lost sale cost since these costs are not easy
to estimate in practice. Abad P [28], San-José et.al [29] had studied a continuous review
inventory control system over a infinite-horizon with deterministic demand where shortage is
partially backlogged.
Jhuma et.al [20] had discussed the state of condition in which a single period
imperfect inventory model with price dependent stochastic demand and partial backlogging
was considered. In many of the articles in literature discussed so far not allowed shortage or
if occurred was considered to be completely backlogged. In a highly competitive market
providing varieties of product today to the customers due to globalization, partial backorder is
more realistic one. For fashionable items and high-tech products with short product life cycle,
the willingness of a customer to wait for backlogging during the shortage period decreases
with the waiting time.
During the stock-out period, the backorder rate is generally considered as a non-
increasing linear function of backorder replenishment lead time through the amount of
shortages. The larger the expected shortage quantity is, the smaller the backorder rate would
be. The remaining fraction of shortage is lost. This type of backlogging is called time-
dependent partial backlogging. Mainly there are two types of shortages inventory followed by
shortages and shortages followed by inventory. Shortage may occur either due to the presence
of the defective items in the ordered lot or due to the uncertainty of demand. The shortage
charge is assumed proportional to the area under the negative part of the inventory curve.
Let us formulate the assumptions as given in Vora N.D [25]
1. The demand for the item is certain, constant and continuous
2. Lead time is fixed
3. The replenishment for order quantity is done when shortage level reaches planned
shortage level in one lot
7. Stock outs are permitted and shortage or backordering cost per unit is known and is
constant.
From (1) and (3) we obtain the following in the interval (Z, ∞)
Qo
(Q − Z ) t 2 ∞
(Q − Z ) t 2 (19)
ψ 2 (Z ) = ϕ 2
∫ f (Q, θ 1 ) dQ + ∫ 2 T f (Q, θ 2 ) dQ
z 2 T Qo
(Q − Z) t 2
Q0 ∞
(Q− Z) t 2 Q (θ −θ ) −θ Q
ψ 2 (Z) =ϕ2 ∫
θ1e−θ Q dQ+ ∫
1
e 0 2
θ2e dQ
1 2
(20)
z 2 T Qo
2 T
107
14. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
Using (3) in (20) we get
(Q − Z )
2
∞ (Q − Z )
22
ψ 2 (Z ) = ϕ 2 dQ
Q0
∫ ∫
− θ1Q (θ 2 − θ1 )
θ1e dQ + eQ 0
θ 2 e −θ 2Q
2Q 2Q
z Qo
1 Q0 ∞
ψ 2 (Z) = ϕ 2 ∫ (Q − Z ) θ1e dQ + ∫ ((Q − Z )) e
Q (θ −θ )
θ 2 e −θ Q dQ
2 −θ Q 1
2 0 2 1 2
2Q z (21)
Qo
Q e −θ Q
1
1 e −θ Q 1 1
ψ 2 (Z) = ϕ 2 ∑ − 2 2 Q + + 2 − Q − − e −θ Q
0
1
Z
Z θ1 Z θ1
(22)
Adding (18) and (22) we have the following result
(23)
The solution of (23) requires the basic property Z=Ẑ and equation (4) suggest a
general principle of balancing the shortage and overage which shall have an occasion to be
applied repeatedly. By recalling the standard notations let us generally introduce a control
variable Z and a random variable Q with known density and two functionsψ 1 (Z, Q ) ≥ 0 and
ψ 2 (Z, Q ) ≤ 0 which may be interpreted as overage and shortage levels respectively. Let us
assume the fundamental property of linear control:
(24)
Whereψ denotes the expected value and is a constant. To minimize a cost of the form
(25)
We differentiate with respect to Q and the use (24), thus obtaining
(26)
This leads to the following condition for the optimal valve Ẑ :
(27)
In other words the derivative of the expected overage must be equal to the characteristics cost
ratio in the equation (27).
Now accordingly the SCBZ Property satisfies the existence of the solution hence when
(28)
Then when and by computing the general principle of balancing shortage and overage
we compute (29)
Thus the optimal solution is given by the following (30)
Now this shows that we have a linear control with α=1
Therefore it leads to the following result (31)
108
15. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
5. CONCLUSIONS
Thus the SCBZ property seems to be a useful concept in reliability theory and needs
further attention. In the most realistic setting the variability of benefit in stochastic inventory
models cannot be ignored. The news boy problem is treated in this paper as an example of an
item under inflation has to be ordered according to the variability of the profit. Our model
framework is extended for three cases. Where as in extending the other case the expression
was more complex and it had a complex probability functions and integrations.
This model is examined in form of time point occurring before the truncation point,
and the time point occurring after the truncation point. Thus the demand may be illustrated by
three successive time periods that classified time dependent ramp type function as, first phase
the demand increases with time after which it attains steady state towards the end and in the
final phase it decreases and becomes asymptotic. Thus the demand may be stock dependent
up to certain time after that it is constant due to some good will of the retailer. This model can
be considered in future with deteriorating items. The necessity of storage of items cannot be
ignored and emphasis should be given whether the storage is needed or not in the context of
deteriorating items and allowing shortages.
Appendix
ACKNOWLEDGEMENT
The research was supported by UGC’s Maulana Azad National Fellowship 2010-
2011(MANF-MUS-TAM-4867).
109
16. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
REFERENCES
[1] Hanssman. F, Operations Research in Production and Inventory Control, John Wiley and
Sons Inc., New York, 1962.
[2] Dowlath fathima, P.S Sehik Uduman, S.Srinivasan, Generalisation of newsboy problem with
demand distribution satisfying the scbz property, Int. J. Contemp. Math. Sciences, Vol. 6,
2011, no. 40, 1989 – 2000.
[3] Nicholas A. Nechval and Konstantin N. Nechval, Constrained optimization in News Boy
problems under uncertainty via statistical inference equivalence principle, Proceeding 12th
International Conference , 2005, ASMTA.
[4] Agarwal, P.Ganeshan, Using Risk Management tools on B2BS: An exploratory investigation,
International Journal of Production Economics108, 2007, 2-7.
[5] Bogataj.D, Bogataj.M, Measuring the supply chain risk and vulnerability in frequency space,
International Journal of Production Economics108, 2007, 291-301.
[6] Sounder Pandian, J. Prasad .S, Madan.M, Supplies from developing countries optimal rider
quantities under loss risks, Omega 36, 2008, 122-130.
[7] Xiao T, Price competition cost and demand disruption and coordination of a supply chain
with one manufacturer and two competing retailers”, Omega36 (2008), 741-753.
[8] Guiquing Zhang and Yinfeng Xu, Risk reward competitive analysis for the News Boy
problem with range in format”, COCA2009 lncs 5573, 334-345, @springer- verlang Berlin
Herdelberg.
[9] JixanXiao, Fangling Lu, Stochastic Newsboy inventory control model its solving on
multiple product order pricing, ICICA2010, 65-72.
[10] P.S Sheik Uduman, Sulaiman, A Sathiyamoorthy, News Boy inventory model with demand
satisfying SCBZ Property, Bulletin Of pure and applied Science,Vol26E (No.1) 2007, 145-
150.
[11] Silver, E.A., Pyke, D.F., Peterson, R., Inventory Management and Production Planning and
Scheduling”. John Wiley & Sons 1998.
[12] Sathiyamoorthy and Parthasarthy, On the expected time to recruitment when threshold
distribution has SCBZ property. International Journal Of Management and
system,Vol.19(No.3), 2003, 233-240.
[13] Raja Rao, B., Talwalker, S, Setting the clock back to zero property of a family of life
distributions. J. Statist. Plann. Infer, (1990), 24:347–352.
[14] Srichandan Mishra, Umakanta Mishra ,Gopabndhan Mishra, Smarajit Bark, Susant
Kr.Paikray, An inventory model for inflation induced demand and Weibull Deteriorating
items., July 2012, 176-182.
[15] Dowlath Fathima, P.S Sheik Uduman, Finite inventory process using SCBZ property,
International conference of mathematics in engineering and business management, 2012,
(ICMEB2012)
[16] Chang, H.C., Ho, C.H., Exact closed-form solutions for optimal inventory model for items
with imperfect quality and shortage backordering, 2010a, Omega 38 (3–4), 233–237.
[17] R. Gullu, E.Onol and N. Erkup, Analysis of a deterministic demand production/inventory
system under nonstationary supply uncertainty,. IIE Transactions, 1997, 29:703-709.
[18] M. Dada, N. Petruzzi, and L. Schwarz, A newsvendor's procurement problem when
suppliers are unreliable. Manufacturing& Service Operations Management, 2007, 9(1):9-32.
110
17. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
[19] L.V. Snyder and Z.J.M. Shen. Supply and demand uncertainty in multi-echelon supply
chains. Working paper, P.C. Rossin College of Engineering and Applied Sciences, Lehigh
University, Bethlehem, PA, 2006.
[20] Jhuma Bhowmick ,G.P Samanta, Optimal inventory policies for imperfect inventory with
price dependent stochastic demand and partially backlogged shortages. Yugoslav Journal of
Operations research, 2012, 1-28.
[21] Bhausaheb KhardeGahininath Vikhe Patil, Simplification of EOQ Model for Planned
Shortages by using Equivalent Holding Cost Ninth AIMS International Conference on
Management January 1-4, 2012, 1042-1053.
[22] Gupta, P.K., Hira D.S. “Inventory models”, Operations Research, New Delhi, India; S.
Chand, 2008, 1011-1097.
[23] Anderson, Sweeney and Williams, Inventory models. Quantitative Methods for business, 1st
ed. Kundali, India, Thompson Southwest, 2009, 135-185.
[24] Narsimhan, S.L., McLeavy, D.W. and Billington, P.J., Basic inventory system. Production
planning and inventory control, New Delhi, India, Prentice-Hall, 2010, 91-111.
[25] Vora, N.D., Inventory management, Quantitative Techniques in Management, New Delhi,
India; Tata McGraw-Hill, 2011, 386-451.
[26] Sharma, S.D., Inventory and production management, Operations research, 15th ed. New
Delhi, India; Kedar Nath ram Nath, 2010, 62-140.
[27] Pannerselvam, R., Inventory control, Operations research, New Delhi, India, Prentice-
Hall, 2009, 230-274.
[28] Abad P., Optimal price and order size for a reseller under partial backordering, Computers
& Operations Research, January 2001, Volume 28, Issue 1, Pages 53-65.
[29] San-José L., J. Sicilia, and J. García-Laguna, An economic lot-size model with partial
backlogging hinging on waiting time and shortage period, Applied Mathematical Modeling,
October 2007, Volume 31, Issue 10, Pages 2149-2159.
[30] N.Balaji and Y.Lokeswara Choudary, “An Application Of Fuzzy Cognitive Mapping In
Optimization of Inventory Function Among Auto Component Manufacturing Units In SME Sector”
International Journal of Management (IJM), Volume 3, Issue 2, 2012, pp. 13 - 24, Published by
IAEME.
[31] Prof. Bhausaheb R. Kharde, Dr. Gahininath J. Vikhe Patil and Dr. Keshav N. Nandurkar,
“EOQ Model For Planned Shortages By Using Equivalent Holding And Shortage Cost” International
Journal of Industrial Engineering Research and Development (IJIERD), Volume 3, Issue 1, 2012,
pp. 43 - 57, Published by IAEME.
111