scholarly journals THE INFLUENCE OF EXPEDITED FABRICATION RATE, UNRELIABLE MACHINES, SCRAP, AND REWORK ON THE PRODUCTION RUNTIME DECISION IN A VENDOR-BUYER COORDINATED ENVIRONMENT

2021 ◽  
pp. 1-13
Author(s):  
Yuan-Shyi Peter Chiu ◽  
Yunsen Wang ◽  
Tiffany Chiu ◽  
Peng-Cheng Sung
Keyword(s):  
Cycle Length ◽  
Operating Cost ◽  
Manufacturing Firms ◽  
Operating Costs ◽  
Individual Effect ◽  
Defective Items ◽  
Cycle Times ◽  
Unreliable Machines ◽  
Mean Time ◽  
Timely Delivery

Transnational manufacturing firms operate in highly competitive marketplaces. This means that they are continuously seeking ways to reduce order response and fabrication cycle times, maintain the desired product quality, manage unanticipated machine failures, and provide timely delivery to effectively minimize overall operating cost and maintain a competitive advantage over their intra-supply chains. To assist firms in achieving these operational goals, we examine a buyer-vendor coordinated system with an expedited fabrication rate, unreliable machines, scrap, and rework, with the objective of minimizing the overall operating costs. An imperfect manufacturing process is assumed, which arbitrarily produces repairable and scrap items, with the latter being reworked in each fabrication cycle. Additionally, the process is subject to a Poisson-distributed machine breakdown. The corrective action is undertaken immediately when the machine fails, and the production of unfinished/interrupted lot resumes when the process is restored. The expedited fabrication rate option is used at an extra cost to reduce the cycle length. We built a fabrication-shipment model to characterize the problem’s features explicitly. Mathematical and optimization approaches assist us in determining the optimal fabrication runtime policy. A numerical example illustrates the capability/applicability of our outcomes. Furthermore, it exposes a diverse set of information relating to the collective/individual effect of differences in the expedited rates, mean-time-to-breakdown, frequency of shipment, and rework/disposal rates of defective items on the optimal policy, utilization, total operating cost, and various cost contributors. This information can contribute to facilitating better decision-making.

scholarly journals ECONOMIC AND OPERATIONAL ANALYSIS OF MECHANIZED FOREST IMPLEMENTATION

2020 ◽  
Vol 44 ◽  
Author(s):  
Nilton Cesar Fiedler ◽  
Alexandre Arantes de Campos ◽  
Marcos Vinicius Winckler Caldeira ◽  
Julião Soares de Souza Lima ◽  
Antônio Henrique Cordeiro Ramalho ◽  
...  
Keyword(s):  
Operating Cost ◽  
High Energy ◽  
Northern Region ◽  
Production Costs ◽  
Operating Costs ◽  
Operating Cycle ◽  
Cycle Times ◽  
Waste Removal ◽  
The Cost ◽  
Efficiency And Productivity

ABSTRACT Mechanization in forestry implantation demands high energy, time, and high operational and production costs. Thus, studies related to the influence of variables on the efficiency of these activities are essential to reduce costs and optimize operations. The objective of this study was to evaluate the operational and cost performance of mechanized forest implantation operations in Eucalyptus sp. Data were collected from eucalyptus plantations located in the northern region of the state of Espírito Santo, Brazil. The analysis of operational performance determined the distribution of operating times, mechanical availability, degree of utilization, operational efficiency, and productivity of the machines. The cost analysis estimated the operating costs in forestry implantation activities. The forest planting operations were: waste removal, subsoiling, digging with fertilization, planting, chemical weeding, and covering fertilization. According to the results, planting (39.20%) and waste removal (15.99%) represented the longest operating cycle times, the shortest production times (51.48% and 53.64%), and finally the longest maintenance times (32.95% and 29%). Chemical weeding and subsoiling showed the lowest maintenance times (4.64% and 3.47%). The cover fertilization was the operation that presented the highest productivity (2.99 ha he-1), and the removal of residues had the lowest (0.97 ha he-1). The highest costs per effective hour (R$13.57 he-1) and lowest production costs (R$81.59 ha-1) occurred at planting. Subsoiling had the highest production cost (R$112.80 ha-1). The lowest operating cost was obtained in the fertilizing operation. Operating costs had the greatest weight in labor, fuel, and maintenance and repairs.

scholarly journals Optimal placement design for picking and packing in distribution centers

2021 ◽  
Vol 13 (4) ◽  
pp. 168781402110106
Author(s):  
John Rios ◽  
Rodrigo Linfati ◽  
Daniel Morillo-Torres ◽  
Iván Derpich ◽  
Gustavo Gatica
Keyword(s):  
Optimal Allocation ◽  
Programming Model ◽  
Operating Cost ◽  
Nonlinear Integer Programming ◽  
Operating Costs ◽  
Optimal Placement ◽  
Distribution Centers ◽  
Suitable Space ◽  
Efficient Distribution

An efficient distribution center (DC) is one that receives, stores, picks and packs products into new logistics units and then dispatches them to points of sale at the minimal operating cost. The picking and packing processes represent the highest operating cost of a DC, and both require a suitable space for their operation. An effective coordination between these zones prevents bottlenecks and has a direct impact on the DC’s operational results. In the existing literature, there are no studies that optimize the distribution of the picking and packing areas simultaneously while also reducing operating costs. This article proposes an integer nonlinear integer programming model that minimizes order preparation costs. It does so by predicting customer demand based on historical data and defining the ideal area for picking and packing activities. The model is validated through a real case study of seven clients and fifteen products. It achieves a [Formula: see text] reduction in operating costs when the optimal allocation of the picking and packing areas is made.

Forest Harvesting Equipment Ownership and Operating Costs in 1984

1986 ◽  
Vol 10 (1) ◽  
pp. 10-15 ◽  
Author(s):  
Dennis A. Werblow ◽  
Frederick W. Cubbage
Keyword(s):  
Fuel Consumption ◽  
Operating Cost ◽  
Forest Harvesting ◽  
Cost Data ◽  
Operating Costs ◽  
Fixed Costs ◽  
Historical Records ◽  
The South ◽  
Consumption Data ◽  
Harvesting Systems

Abstract Forest harvesting equipment purchase costs in 1984 were determined by a survey of equipment dealers and manufacturers operating in the South. Based on delivered purchase prices, fixed costs for equipment ownership were calculated using machine rate formulas. Equipment operating costs were estimated based on general guidelines, fuel consumption data, and historical records. The fixed and operating cost data can be used when considering equipment investments and analyzing actual or potential harvesting systems.

The Discussion on Countermeasures of Perfecting the Operating Cost Control and Strengthening the Hospital Financial Management

2020 ◽  
Vol 9 (4) ◽  
pp. 174
Author(s):  
Youhong Liu
Keyword(s):  
Financial Management ◽  
Medical Service ◽  
Cost Control ◽  
Operating Cost ◽  
Medical Industry ◽  
Operating Costs ◽  
Effective Control ◽  
New Era ◽  
Technical Requirements ◽  
Hospital Financial Management

At present, the medical industry has developed into a sunrise industry in the new era. With the continuous improvement of the level of medical services and technical requirements and the establishment and improvement of related medical service institutions, the competition between the medical industries is further intensified. As a complex, hospitals must achieve cost control and financial management in order to achieve ideal operating benefits. At present, there are still many problems in the financial management and cost control of related hospitals. For this, it is necessary to grasp the problem and take effective measures to cope with it, promoting the effective control of hospital operating costs, and achieving efficient financial management goals.

scholarly journals BIAYA OPERASIONAL KENDARAAN PADA DINAS PERUMAHAN RAKYAT KAWASAN PERMUKIMAN DAN DINAS PEKERJAAN UMUM PENATAAN RUANG PROVINSI ACEH

2018 ◽  
Vol 1 (3) ◽  
pp. 1-9
Author(s):  
M. Aris Maulana ◽  
Renni Anggraini ◽  
Sugiarto Sugiarto
Keyword(s):  
Traffic Management ◽  
Quantitative Data ◽  
Operating Cost ◽  
Residential Area ◽  
Operating Costs ◽  
Major Road ◽  
Specific Transport ◽  
Transportation Service ◽  
Operational Systems ◽  
Employee Characteristics

The employee transportation service is an application of traffic management using vanpooling. Vanpooling is an activity of using a vehicle together or sharing a car on the way so that more than one person is in the van in one travel route. Vanpooling is able to reduce the use of private vehicles to the center of the activity with a fleet of special transport employees. The potential for employee specific transport is enormous and 83% agree with the implementation of the traffic management. The employee specific operating freight operational systems are determinations with residential area corridors and passing major road routes at the address of each employee. In the operation of a transport both personal, general and special, not apart from the vehicles operating costs (VOC). Therefore, an analysis of the need for the development of special transportation of employees in the Dinas Perumahan Rakyat Kawasan Permukiman dan Dinas Pekerjaan Umum Penataan Ruang Province of Aceh. The method used in this study is descriptive - quantitative, by distributing questionnaires to obtain quantitative data in determining VOC. The results of the VOC of private and special vehicles are summarized in a descriptive conclusion. The result of the research shows that employee characteristics of the data are processed to determine vehicle operating cost of private vehicles as well as the special transport vehicles of employees. The overall VOC of private vehicles is Rp. 2.486.377.640, while the value VOC of employee specific transport vehicles is Rp. 685.043.840.

scholarly journals Avaliação de Métodos de Construção de Aceiros Para Prevenção de Incêndios Florestais no Cerrado

2013 ◽  
Vol 4 (4) ◽  
pp. 333-343
Author(s):  
Francis Barbosa Rocha ◽  
Geraldo Cesar Zambrzycki ◽  
Edilene Silva Ribeiro ◽  
Reginaldo Sérgio Pereira
Keyword(s):  
Forest Fires ◽  
Soil Compaction ◽  
Statistical Difference ◽  
Operating Cost ◽  
Sensu Stricto ◽  
Operating Costs ◽  
Clean Water ◽  
Combustible Material ◽  
Experimental Station ◽  
The University

We evaluated four methods of constructing firebreaks in order to prevent the spread of forest fires. The work was performed in a fragment of Cerrado sensu stricto, located margin of BR 251, near the border with the Clean Water Farm (FAL), the experimental station of the University of Brasilia (UnB). The treatments involved the construction of firebreak with the use of heat (T1), semi-mechanized mowing (T2), harrowing (T3) and mowing machine (T4). Over the range of Cerrado sensu stricto were installed 16 plots of 40 x 50 m (2000 m²), randomly distributed, representing the four treatments with four replicates each. In each plot was given the charge of combustible material. The evaluation of the methods was made based on the income earned, and operating costs impacts the ground. The following conclusions could be drawn from the study: (a) the average load of combustible materials found in the area was less than the literature values, (b) the best performance value found medium (ha 0.59 hour-1) was to the method of construction of firebreaks with the use of fire, (c) the lowest operating cost was found for treatment with semi-mechanized mowing (US$ 13.27 ha-1), and (d) there was no statistical difference between treatments on soil compaction.

scholarly journals Decision Making and Truck Operating Costs on Haulage Business in Lagos, Nigeria

2020 ◽  
pp. 28-37
Author(s):  
Christopher Adesola Wojuade ◽  
Jubril Oladosu
Keyword(s):  
Operating Cost ◽  
Cost Effective ◽  
Business Owners ◽  
Operating Costs ◽  
Maintenance Cost ◽  
Financial Investment ◽  
The Subject ◽  
Fleet Operations ◽  
Regular Training ◽  
Structured Questionnaire

Aim: To evaluates how managers take decisions on variable components of freight operation and its effects on truck operating costs in haulage business in Lagos, Nigeria. Study Design: The structure of this paper is a descriptive design. It identified a gap in knowledge and employed a structured questionnaire to obtain useful information that gives a clearer understanding of the subject in a new environment. The data collected was analysed using descriptive statistics. Place and Duration of Study: Haulage companies operating in Lagos, Nigeria between June and August 2019. Methodology: The population study is 2154 staff drawn from the eight purposively selected registered haulage companies in Lagos, Nigeria. A structured questionnaire was randomly administered on 337 personnel involved in freight operations. The questionnaire survey was conducted to obtain information on company’s expenses and policy decisions on truck operating components. Result: The decision to use new truck reduces fuel consumption and maintenance cost of haulage business. Furthermore, remunerating drivers in salary is cost effective, regular training of drivers improves their performance while high empty return trips leads to revenue loss. Business owners take decisions on huge financial investment while managers handled those that are directly related to daily fleet operations. Conclusion: The study concluded that decisions on components of freight operation increases truck operating cost of the haulage companies in the study area. The study therefore recommends policy actions that will enhance productivity of haulage companies through effective decisions.

scholarly journals An Empirical Study on the Influence of Diversification on the Operating Cost of Commercial Banks

CONVERTER ◽  
2021 ◽  
pp. 757-770
Author(s):  
Jing He, Ke Zou, Xinyi Cai
Keyword(s):  
Strategic Alliances ◽  
Commercial Banks ◽  
Management Strategies ◽  
Operating Cost ◽  
Operating Costs ◽  
Economies Of Scope ◽  
Excessive Competition ◽  
Income Ratio ◽  
The Cost ◽  
The Impact

The majority of the literature has focused on the impact of diversification on bank performance, while the research on the impact of diversification on bank costs is inadequate. Therefore, in this paper we empirically analyzed the impact of diversification on operating costs through a panel regression model, collecting the data of 47 Chinese commercial banks from 2005 to 2015. The empirical results showed that an increase in the non-interest income ratio significantly promoted a decrease in the cost–income ratio, and the robustness tests of different time intervals and different types of banks were consistent. This suggests that diversification effectively reduced the operating costs of banks by means of the sharing of information and equipment, the reduction of asset specificity, and the improvement of operation management synergy. This also indicates that excessive competition costs and the agency costs of diversification were lower. Further analysis showed that the diversification of national banks compared with local banks was more significant in reducing operating costs, and, for the national banks, the effects of economies of scope and scale were stronger. Diversified management strategies for local banks should be carefully promoted through the construction of strategic alliances, mergers and acquisitions, etc.

scholarly journals Operating cost analysis: sources and methods

2019 ◽  
pp. 132-138
Author(s):  
Nadiya Khorunzhak ◽  
Tetyana Portovaras
Keyword(s):  
Cost Optimization ◽  
Operating Cost ◽  
Operating Costs ◽  
Sources Of Information ◽  
Methods Of Analysis ◽  
External Sources ◽  
Internal Sources ◽  
Abc Analysis ◽  
The Cost ◽  
The Impact

Purpose. The aim of the article is identification of requirements and composition of sources of analysis, critical assessment of their information content, as well as emphasis on the application of a systematic approach to the analysis of operating costs and compliance of its method with these criteria. Methodology of research. The empirical research methods are used in the course of the research, in particular: analysis – in order to identify the composition of sources of analysis of operating expenses; generalization – to substantiate the classification of sources of analysis and to formulate recommendations on the choice of methods of analysis, which most fully allow to estimate the operating costs. Findings. The principles of formation of information base of the analysis of operating expenses are substantiated, which will allow to obtain high-quality information on their status and on the basis of the obtained results to predict the activity of the enterprise in the future. The study of the impact of factors on the analysis of operating expenses allowed us to distinguish sources of information into two groups: internal and external. It is determined that internal sources of data for analysis are accounting records, which are formed at enterprises, and which is considered by the authors as a source of analysis of operating expenses. External sources of information the authors consider all possible information resources of an external nature, research of the competitive environment and reporting of subjects with similar types of activity. Originality. The scheme of interconnection sources and analysis results of operations is proposed, which comprehensive utilization, will allow obtaining result analytical information on which management can optimize the cost of compliance with objectives and increase effectiveness of operations. According to modern realities, the most suitable methods of analysis are offered, which allow to adequately assessing the situation of the enterprise in the strategic plane with respect to operating expenses. Practical value. Carrying out an assessment of the operating costs of an enterprise with using various methods and tools of analysis in a complex provides obtaining unbiased data that can be effectively used for the purpose of cost optimization and increase of productivity. Key words: analysis; operating costs; cost optimization; internal sources of information; external sources of information; strategic methods; ABC analysis.

scholarly journals Determinants of Interest Margin in Pakistan: A Panel Data Analysis

Economies ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 25 ◽  
Author(s):  
Murad Khan ◽  
Abdul Jalil
Keyword(s):  
Panel Data ◽  
Money Supply ◽  
Panel Data Analysis ◽  
Market Competition ◽  
Operating Cost ◽  
Interest Rate Risk ◽  
Operating Costs ◽  
Method Of Moment ◽  
Lerner Index ◽  
Interest Margin

This paper explores the determinants of the net interest margin (NIM) using unbalanced panel data from 2003 to 2017. This paper’s objective is achieved by using a two-step system generalised method of moment (GMM) for estimation. Three different models are to account for two alternative measures of market competition. The empirical results of these models indicate that operating cost, profit tax, interest rate risk, Lerner index, national savings, money supply and the T-bill rate have significant positive associations with the NIM. Meanwhile, operational size, credit risk and the inflation rate negatively affect NIM. Furthermore, operating cost, taxation and the money supply are the main factors that influence the NIM. The present analysis provides a comprehensive view of the Lerner index, which is a better measure for capturing the degree of market power than the concentration measure (HHI). Managerial efficiency and risk aversion are bank-level factors that do not significantly determine NIM. Operating costs could be decreased by adopting new banking technologies. Therefore, higher competition, lower operating costs and restricted uncertain conditions in a macro environment, particularly in the money market, could reduce the NIM.

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