scholarly journals Modeling and Optimization of Supplier Selection Process for Decreasing Total Cost of Projects

2021 ◽  
Author(s):  
Caner BASARAN
Keyword(s):  
Mathematical Model ◽  
Supplier Selection ◽  
Net Present Value ◽  
Selection Process ◽  
Optimal Solution ◽  
Transportation Costs ◽  
Present Value ◽  
Factors Affecting ◽  
Construction Firms ◽  
Steel Construction

There are significant factors affecting the decisions about supplier selection for procurement in steel construction firms: parts prices and transportation costs, payment periods, parts lengths and considering penalty terms coming from firm’s clients. Therefore, in order to select optimal firms, each proposal must be considered on equal terms. As a result, ‘Net Present Value’ should be calculated in evaluating payment period, lead time, parts lengths and also transportation costs payment period. This evaluation may bring about decrease in costs of parts based on older procurements. For an optimal solution, a mathematical model which includes, demand of units, net present value of products, delay cost due to retardation of Project is required. Moreover, the possibility of making predictions for future scenarios may assist in mapping out a route for the decision makers in steel construction firms. On this account, this study is designed to develop a mathematical model for the supplier selection system using integer programming.

scholarly journals Research on Power Grid Investment Risk of Set-Analysis Method in New Electricity Reform

2018 ◽  
Vol 227 ◽  
pp. 02017
Author(s):  
Jianchang Lu ◽  
Dandan Xing
Keyword(s):  
Net Present Value ◽  
Risk Model ◽  
Power Grid ◽  
Investment Decisions ◽  
Investment Risk ◽  
Analysis Method ◽  
Present Value ◽  
Profit Model ◽  
Factors Affecting ◽  
Pair Analysis

In view of the change in the profit model of the power grid under the new power reform, If grid companies want to improve their economic efficiency, they must expand the scale of effective assets of fixed assets and increase the number of effective assets within the understanding of the demand for electricity.By determining the factors affecting the power grid investment in the new environment,a risk model for the power grid investment under the new power reform is constructed.First,this paper uses the set pair analysis method algorithm and derives the relevant formula to quantify uncertainties in grid investment risk.Then,it gets the results of the calculation of the degree of connection of each scheme and combine set pair events with a net present value less than 0 for each set evens.At last,based on the above results,we get the best investment plan.Verified by the case of the HBN grid company,it shows that the investment risk model established is feasible and can provide an appropriate reference for the new power companies to change their investment decisions.

scholarly journals Economic-Mathematical Model for Assessing the Sensitivity of International Innovation and Investment Projects

2019 ◽  
Vol 8 (12) ◽  
pp. 140-145
Keyword(s):  
Mathematical Model ◽  
International Business ◽  
Economic Efficiency ◽  
Net Present Value ◽  
Present Value ◽  
Investment Activity ◽  
Investment Projects ◽  
Internal Parameters ◽  
Proposed Model ◽  
Sensitivity Indicator

International innovation and investment activity occupy a special place in the system of modern international business. The authors propose an economic and mathematical model for assessing the sensitivity of international innovation and investment projects by the criterion of net present value. It is advised to use the obtained sensitivity indicator as an additional one in assessing the economic efficiency of international innovation and investment projects of an enterprise. The proposed model makes it possible to determine the effect of several internal parameters simultaneously on the net present value of the project.

scholarly journals Theoretical model of system for optimized software selection process

2010 ◽  
Vol 58 (3) ◽  
pp. 233-242
Author(s):  
Jiří Rybička ◽  
Petra Talandová ◽  
Jan Přichystal
Keyword(s):  
Mathematical Model ◽  
Theoretical Model ◽  
Narrow Band ◽  
Selection Process ◽  
Optimal Solution ◽  
Software Selection ◽  
Band Area ◽  
Everyday Problem ◽  
Selection Of

Selection of a suitable software is an everyday problem for many users. This process if often ineffective, as the users usually work only with a restricted set of programs and are unable to have appropriate knowledge about all programs available. The paper therefore deals with the model of a system for optimized software selection process. Applications of this kind are already available online, but they are usually aimed at narrow-band area, recommending often commercial programs only. Users also cannot influence the process of selection. The system described in this paper removes this insufficiency. A mathematical model is designed, which works with input sets of users’ requirements and programs’ properties, recommending an optimal solution. The system is designed as open, extensible and accessible and is oriented on users and their needs.

scholarly journals The Feasibility of Lowering Energy Costs Through Reduced Delivery Frequency

1980 ◽  
Vol 9 (1) ◽  
pp. 13-15
Author(s):  
James G. Beierlein ◽  
Robert J. Campbell
Keyword(s):  
Net Present Value ◽  
Energy Savings ◽  
Transportation Costs ◽  
Energy Costs ◽  
Present Value ◽  
Fuel Price ◽  
Fuel Prices ◽  
Price Increases ◽  
Net Revenue ◽  
The Cost

The feasibility of reducing delivery frequency as a means of lowering energy and transportation costs is examined. Four reduced delivery situations are examined using a net present value criteria. While substantial energy savings are possible the cost of equipment necessary to accommodate these reductions outweighs the energy savings at current fuel prices. Substantial fuel price increases are required before such reductions are worthwhile. Good management requires examination of the net effect of energy savings on net revenue.

scholarly journals Financial Analysis for Replacement of Construction Equipment in Saudi Arabia

2012 ◽  
Vol 5 (1) ◽  
pp. 16-22
Author(s):  
Ali Shash
Keyword(s):  
Saudi Arabia ◽  
Net Present Value ◽  
Financial Analysis ◽  
Economic Life ◽  
Present Value ◽  
Factors Affecting ◽  
Qualitative And Quantitative ◽  
Employee Safety ◽  
Large Size ◽  
Financial Issues

This study report results of a survey conducted in the EasternProvince of Saudi Arabia to explore the procedures and financialtechniques that large-size contractors utilise in replacingequipment. The results indicated that contractors set severalreplacement alternatives that they evaluate by using a set ofvarious qualitative and quantitative factors. The contractors’business objectives, employee safety and morale, and, contractors’image in the industry were found to be the most influentialqualitative factors affecting the decision of equipment replacement.Inflation, downtime, obsolescence, salvage value, and depreciationare among the top quantitative factors that contractors considerwhile making a decision to replace equipment. Because of theirsimplicity and practicality, the net present value, payback period,and the economic life are the most popular techniques that areutilised for analysing the financial issues of proposed replacementalternatives.

Cost-Benefit Analysis for Ship Automation Retrofit: The Case of Icebreaker Frej

2005 ◽  
Vol 42 (02) ◽  
pp. 113-124 ◽  
Author(s):  
D. V. Lyridis ◽  
H. N. Psaraftis ◽  
N. Ventikos ◽  
P. Zacharioudakis ◽  
K. Dilzas
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Advanced Technology ◽  
Benefit Analysis ◽  
Costs And Benefits ◽  
Present Value ◽  
Factors Affecting ◽  
Advantages And Disadvantages ◽  
The Cost

A detailed cost-benefit analysis of a retrofit of the Advanced Technology to Optimise Maritime Operational Safety (ATOMOS) platform on board icebreaker Frej is presented. After accurately determining the relationship between the costs and benefits, an analysis is implemented in order to assess the most basic advantages and disadvantages of the suggested retrofitting action in monetary terms. A two-step approach is adopted. The first step is to define the major categories of the ship operational aggregate costs and benefits (for example, the actual cost of the ATOMOS platform and of equipment not part of the ATOMOS platform but still necessary for its installation and operation, or the expected crew decrease because of the higher degree of automation). The second step is to examine the various basic components of these categories (for example, administration and training cost, required automatic radar plotting aid [ARPA] and electronic chart display and information system [ECDIS] equipment acquisition cost, fuel benefits, and insurance benefits). The cost-benefit analysis performed is followed by a sensitivity analysis of the most important factors affecting the net present value of the investment. It is shown that it takes about 5 years for the ATOMOS retrofit to be fully paid back by the annual savings it offers and it takes about 6.5 years for the net present value of the investment to turn positive. This coupled by the increased vessel safety justifies the decision to retrofit Frej with the ATOMOS platform. Furthermore, it is found that the cost of the ATOMOS platform, the benefits from crew decrease, and the interest rate are those factors that essentially determine the profitability of the investment. In the case of Frej, it is concluded that the retrofit is worth undertaking for the majority of future scenarios.

scholarly journals An Inventory Model for Perishable Products with Stock-Dependent Demand and Trade Credit under Inflation

2013 ◽  
Vol 2013 ◽  
pp. 1-8 ◽  
Author(s):  
Shuai Yang ◽  
Chulung Lee ◽  
Anming Zhang
Keyword(s):  
Trade Credit ◽  
Net Present Value ◽  
Optimal Solution ◽  
Inventory Model ◽  
Perishable Products ◽  
Present Value ◽  
Credit Period ◽  
Purchasing Cost ◽  
Stock Dependent Demand ◽  
Dependent Demand

We consider an inventory model for perishable products with stock-dependent demand under inflation. It is assumed that the supplier offers a credit period to the retailer, and the length of credit period is dependent on the order quantity. The retailer does not need to pay the purchasing cost until the end of credit period. If the revenue earned by the end of credit period is enough to pay the purchasing cost or there is budget, the balance is settled and the supplier does not charge any interest. Otherwise, the supplier charges interest for unpaid balance after credit period, and the interest and the remaining payments are made at the end of the replenishment cycle. The objective is to minimize the retailer’s (net) present value of cost. We show that there is an optimal cycle length to minimize the present value of cost; furthermore, a solution procedure is given to find the optimal solution. Numerical experiments are provided to illustrate the proposed model.

ANALISIS KELAYAKAN FINANSIAL INDUSTRI PENGOLAHAN KECAP ANEKA GUNA DI KOTA LANGSA

2017 ◽  
Vol 2 (1) ◽  
pp. 21-30
Author(s):  
Muhammad Jamil ◽  
Januari Frizki Bella
Keyword(s):  
Net Present Value ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Adapun tujuan dari Penelitian ini adalah untuk mengetahui kelayakan usaha industri pengolahan kecap Aneka Guna apabila dilihat dari segi kelayakan finansial. Penelitian ini menggunakan metode studi kasus. Lokasi penelitian yaitu di Kota Langsa dengan pertimbangan bahwa lokasi tersebut merupakan daerah yang terdapat industri pengolahan kecap asin dan mudah di jangkau oleh penulis. Waktu penelitian dilaksanakan pada Bulan Juni - Oktober 2014. Tenaga kerja yang digunakan berjumlah 27 orang, 20 tenaga kerja pria dan 7 orang tenaga kerja wanita. Jumlah penggunaan tenaga kerja selama 5 tahun sebesar 3759 HKP. Total biaya produksi yang dikeluarkan oleh pengusaha dalam usaha pembuatan kecap didaerah penelitian selama 5 tahun adalah Rp. 2.076.988.000,-. Pendapatan kotor yang diperoleh pengusaha sebesar Rp. 8.199.690.000,- dan pendapan bersih yang diperoleh sebesar Rp. 6.122.702.000,-                 Kota Langsa hanya memiliki 1 pengusaha pengolahan kecap asin dan dijadikan sebagai pengusaha sampel yaitu usaha industri pengolahan kecap asin Aneka Guna. Hasil perhitungan di peroleh Net Present Value (NPV) sebesar Rp. 263.281.290 (lebih besar dari nol), sedangkan Internal Rate of Return (IRR) sebesar 84% lebih besar dari tingkat bunga yang berlaku (D.F. = 18%), sedangkan Net B/C Ratio sebesar 3,27 (lebih dari pada 1) dan Pay Back Priod (PBP) 1 Tahun 6 Bulan (lebih kecil dari umur ekonomis).  

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