The Choice of Prices versus Quantities under Outsourcing

2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Ray-Yun Chang ◽  
Jin-Li Hu ◽  
Yan-Shu Lin

Abstract This paper establishes a duopoly model with product differentiation and outsourcing in order to analyze the equilibrium competition strategies (choice of prices versus quantities) when the outsourcer outsources its intermediate good to a final product competitor. We show that: (1) both firms choose the quantity strategy when the cost efficiency of the subcontractor is low; (2) the choice of competition strategy is the price strategy for the subcontractor and the quantity strategy for the outsourcer when the cost efficiency of the subcontractor is moderate; (3) both firms choose the price strategy when the cost efficiency of the subcontractor is sufficiently high.

2020 ◽  
Vol 54 (6) ◽  
pp. 1775-1791
Author(s):  
Nazila Aghayi ◽  
Samira Salehpour

The concept of cost efficiency has become tremendously popular in data envelopment analysis (DEA) as it serves to assess a decision-making unit (DMU) in terms of producing minimum-cost outputs. A large variety of precise and imprecise models have been put forward to measure cost efficiency for the DMUs which have a role in constructing the production possibility set; yet, there’s not an extensive literature on the cost efficiency (CE) measurement for sample DMUs (SDMUs). In an effort to remedy the shortcomings of current models, herein is introduced a generalized cost efficiency model that is capable of operating in a fuzzy environment-involving different types of fuzzy numbers-while preserving the Farrell’s decomposition of cost efficiency. Moreover, to the best of our knowledge, the present paper is the first to measure cost efficiency by using vectors. Ultimately, a useful example is provided to confirm the applicability of the proposed methods.


2017 ◽  
Vol 1 (2) ◽  
pp. 81-107
Author(s):  
Dheny Biantara

Summarized Indonesian airline executive views on the reason for the cost problem in mayor airline andon the potential areas and measures of cost reduction in airline operation. Present an introductionsurvey where 3 executives from 3 Indonesian airlines were respondent. In the executive opinion the costproblem in mayor Indonesian airline is primarily due to fuel and oil pricing and money currency. Of thevarious function in airline maintenance was seen as least cost efficiency, whereas flight operation wasseen as an area with most potential for cost reduction. Indonesian airline had made route and fleetchanges after the beginning of 2011 to reduce cost, concludes from the analisys result havingprivatization would be an important step towards more efficient airline operation. Flexibility fromIndonesian airline regulatory would be very much welcome and the value chain concept to improveIndonesian airline having competitive adventage and cost leadership differentiation.


1994 ◽  
Vol 29 (12) ◽  
pp. 117-127
Author(s):  
Jan Erik Lind ◽  
Ernst Olof Swedling

The sewage treatment plant of Uppsala was originally built in 1946 and has since then been extended and upgraded several times up to 1972 when the last major upgrading was completed. In 1987 it was decided to renew the treatment plant for at least another 20-30 years of operation and to upgrade the biological process to include nitrogen reduction. A 7 year plan covering some 18 items with a total investment cost of approximately 120 MSEK was set in action during 1987. The aim was to raise the cost efficiency by introducing modern techniques, new machinery, a better working environment and a better understanding of the processes used. The need to keep the plant in operation during reconstruction work has caused difficulties, delays and unforseen costs but a close cooperation between all parties concerned (operators, contractors, engineers and the regional environment administration) has solved most of the problems. Experiences so far include an improved effluent quality, a better cost efficiency, a healthier and more engaged operating staff. A research team has been engaged to develop and introduce a nitrogen reduction scheme in the activated sludge process. This has been a challenging and fruitful experience.


2021 ◽  
Vol 193 (7) ◽  
Author(s):  
Heini Hyvärinen ◽  
Annaliina Skyttä ◽  
Susanna Jernberg ◽  
Kristian Meissner ◽  
Harri Kuosa ◽  
...  

AbstractGlobal deterioration of marine ecosystems, together with increasing pressure to use them, has created a demand for new, more efficient and cost-efficient monitoring tools that enable assessing changes in the status of marine ecosystems. However, demonstrating the cost-efficiency of a monitoring method is not straightforward as there are no generally applicable guidelines. Our study provides a systematic literature mapping of methods and criteria that have been proposed or used since the year 2000 to evaluate the cost-efficiency of marine monitoring methods. We aimed to investigate these methods but discovered that examples of actual cost-efficiency assessments in literature were rare, contradicting the prevalent use of the term “cost-efficiency.” We identified five different ways to compare the cost-efficiency of a marine monitoring method: (1) the cost–benefit ratio, (2) comparative studies based on an experiment, (3) comparative studies based on a literature review, (4) comparisons with other methods based on literature, and (5) subjective comparisons with other methods based on experience or intuition. Because of the observed high frequency of insufficient cost–benefit assessments, we strongly advise that more attention is paid to the coverage of both cost and efficiency parameters when evaluating the actual cost-efficiency of novel methods. Our results emphasize the need to improve the reliability and comparability of cost-efficiency assessments. We provide guidelines for future initiatives to develop a cost-efficiency assessment framework and suggestions for more unified cost-efficiency criteria.


2021 ◽  
Vol 13 (11) ◽  
pp. 6075
Author(s):  
Ola Lindroos ◽  
Malin Söderlind ◽  
Joel Jensen ◽  
Joakim Hjältén

Translocation of dead wood is a novel method for ecological compensation and restoration that could, potentially, provide a new important tool for biodiversity conservation. With this method, substrates that normally have long delivery times are instantly created in a compensation area, and ideally many of the associated dead wood dwelling organisms are translocated together with the substrates. However, to a large extent, there is a lack of knowledge about the cost efficiency of different methods of ecological compensation. Therefore, the costs for different parts of a translocation process and its dependency on some influencing factors were studied. The observed cost was 465 SEK per translocated log for the actual compensation measure, with an additional 349 SEK/log for work to enable evaluation of the translocation’s ecological results. Based on time studies, models were developed to predict required work time and costs for different transportation distances and load sizes. Those models indicated that short extraction and insertion distances for logs should be prioritized over road transportation distances to minimize costs. They also highlighted a trade-off between costs and time until a given ecological value is reached in the compensation area. The methodology used can contribute to more cost-efficient operations and, by doing so, increase the use of ecological compensation and the benefits from a given input.


Author(s):  
Joshua D. Parcel ◽  
John R. Schroeter ◽  
Azzeddine M Azzam

AbstractCurrent trends in the structure of hog production in the U.S. are toward facilities that are not only larger, but also more likely to be specialized, carrying out only some of the vertically linked phases of production in the same facility. This paper investigates the cost efficiency incentives for these changes by estimating a multistage cost function for hog production. Data are from the Hog Production Practices and Costs portion of the USDA’s 2004 Agricultural Resource Management Survey.


2013 ◽  
Vol 2013 ◽  
pp. 1-6 ◽  
Author(s):  
Orhan Bozkurt ◽  
Mehmet İslamoğlu

As the variety of materials utilized in construction industry has expanded, new techniques have been used in order to optimize the quality and efficiency of output. Therefore, recent innovations taking place in the construction industry led researchers to increase the mechanical efficiency of the output more than the cost effectiveness of it. However, especially professionals experiencing in the industry look into the cost effectiveness of the work. In other words, they also want researchers to justify the innovative techniques economically. The aim of this study is to provide a comparative analysis of the cost efficiency of polymer concrete used to manufacture durable and long-lasting reinforced concrete structures.


2011 ◽  
Vol 13 (1) ◽  
pp. 61-76 ◽  
Author(s):  
Kwadjo Ansah‐Adu ◽  
Charles Andoh ◽  
Joshua Abor

2000 ◽  
Vol 7 (1) ◽  
pp. 72-78 ◽  
Author(s):  
P. Kern ◽  
M. Kron ◽  
K. Hiesche

ABSTRACT The performance of rat liver and HEp-2 in the detection of antinuclear antibodies (ANA) was studied by two independent sites and compared against an ANA enzyme immunoassay (EIA) screen and EIA systems for the measurement of antibodies to double-stranded DNA (dsDNA) and ENA. Sixty-two sera from patients with connective tissue disease (CTD) and 398 from controls suffering from other disorders were included. The level of agreement was, for HEp-2 and rat liver (within one site), 82.0% (ANA positive/ANA negative) and 51.0% (ANA pattern); and for HEp2- and HEp-2 (between sites), 71.8 and 86.5%. On sera with the ANA homogeneous pattern, the measurement of anti-ENA EIA added little to the detection rate with anti-dsDNA EIA alone. On ANA speckled sera, the EIA reactivity depended on the reaction of the mitotic cells: while sera with positive mitoses reacted similarly to ANA homogeneous sera, in those with negative mitoses the measurement of anti-ENA added about 10% to the detection rate achieved with anti-dsDNA alone. The measurement of anti-Scl-70 and anti-Jo-1 did not markedly improve the positive rate with classical ENA (anti-SSA, -SSB, -Sm, and -RNP) alone, raising doubts about the cost efficiency of including these measurements in unselected sera. The ANA EIA identified patients with CTD at a rate similar to that for rat liver and HEp-2. However, up to 98% of the sera found to be negative by ANA EIA but positive by use of rat liver and HEp-2 were from controls. Thus, the ANA EIA may possible be used as an alternative screen, particularly in laboratories with a high frequency of sera from patients not suffering from CTD.


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