Prediction of firm bankruptcies have been extensively studied in accounting, as all stakeholders in a firm have a vested interest in monitoring its financial performance. This paper presents an exploratory study which compares the predictive capabilities for firm bankruptcy of neural networks and classical multivariate discriminant analysis. The predictive accuracy of the two techniques is presented within a comprehensive, statistically sound framework, indicating the value added to the forecasting problem by each technique. The study indicates that neural networks perform significantly better than discriminant analysis at predicting firm bankruptcies. Implications of our results for the accounting professional, neural networks researcher and decision support system builders are highlighted.

Bankruptcy prediction using neural networks

This paper presents an in-depth analysis toward understanding the business value components an organization can derive from adopting radio frequency identification (RFID). Although this subject is currently a hot topic, many organizations are slow in warming up to the idea of using RFID to conduct more effective and efficient business processes. We propose a framework for evaluating the business value of RFID technology, hoping that a better understanding of the business value of RFID will encourage more organizations to implement it. Emphasis is on delivering business value through refining business processes and expanding the business model. We illustrate these concepts drawing on the experience of five early adopters from the Taiwan healthcare industry and formulate this framework as a set of propositions based on relevant literature, cases from pioneers in the field and our intuition. These propositions will need to be validated through empirical evidence. r 2007 Elsevier B.V. All rights reserved.

/pdf/evaluating-the-business-value-of-rfid-evidence-from-five-44860d0jh3.pdf

Evaluating the business value of RFID: Evidence from five case studies

In the supply chain, a warehouse is an essential component for linking the chain partners. It is necessary to allocate warehouse resources efficiently and effectively to enhance the productivity and reduce the operation costs of the warehouse. Therefore, warehouse management systems (WMSs) have been developed for handling warehouse resources and monitoring warehouse operations. However, it is difficult to update daily operations of inventory level, locations of forklifts and stock keeping units (SKUs) in real-time by using the bar-code-based or manual-based warehouse management systems. In this paper, RFID technology is adopted to facilitate the collection and sharing of data in a warehouse. Tests are performed for evaluating the reading performance of both the active and passive RFID apparatus. With the help of the testing results, the efficient radio frequency cover ranges of the readers are examined for formulating a radio frequency identification case-based logistics resource management system (R-LRMS). The capabilities of R-LRMS are demonstrated in GSL Limited. Three objectives are achieved: (i) a simplification of RFID adoption procedure, (ii) an improvement in the visibility of warehouse operations and (iii) an enhancement of the productivity of the warehouse. The successful case example proved the feasibility of R-LRMS in real working practice.

A RFID case-based logistics resource management system for managing order-picking operations in warehouses

Radio frequency identification technology: An exploratory study on adoption in the South African retail sector

Purpose – Theory is needed for a discipline to mature. This research aims to provide a summary analysis of the theories being used in contemporary logistics and supply chain management (SCM) studies.Design/methodology/approach – A comprehensive literature review of articles appearing in five top tier logistics and SCM journals is conducted in order to identify how often theory is used and to classify the specific theories used. An analysis of the theoretical categories is presented to explain the type and frequency of theory usage.Findings – Over 180 specific theories were found within the sampled articles. Theories grouped under the competitive and microeconomics categories made up over 40 per cent of the theoretical incidences. This does not imply all articles utilize theory. The research found that theory was explicitly used in approximately 53 per cent of the sampled articles.Practical implications – Two implications are central. First, in the minds of editors, reviewers and authors is approximately 5...

An inventory of theory in logistics and SCM research

Purpose – RFID mandates by large retailers and various government agencies made it a requirement for some large organizations to implement RFID technology, while other medium to small organizations are still evaluating the potential costs and benefits of such adoption. This paper examines whether empirical data support the hype on RFID.Design/methodology/approach – A survey was sent to Warehousing Education and Research Council (WERC) members at manufacturing firms, third party warehousing/logistics providers, wholesaler/distributors, and retail firms to determine whether they are implementing RFID technology and what challenges they are facing.Findings – A high percentage of respondents are not currently considering RFID technology. Companies implementing or considering RFID plan to invest a significant amount of money into this technology over the next three years. But a number of concerns still exist and skepticism remains about the potential for RFID to deliver cost savings or a positive ROI in the ne...

An empirical study of RFID implementation in the warehousing industry

Purpose – Large retailers and various government agencies have backed off from their earlier radio frequency identification (RFID) mandates. The RFID industry has also matured. The purpose of this paper is to examine RFID implementation in warehousing, utilizing empirical data to determine how the warehousing industry is changing with respect to RFID implementation.Design/methodology/approach – An online survey was sent to Warehousing Education and Research Council (WERC) members at manufacturing firms, third party warehousing/logistics providers, wholesaler/distributors, and retail firms, to determine whether they are implementing RFID technology and what challenges they are facing.Findings – Compared to an earlier study, it was found that fewer organizations are considering the technology. The respondents in general were less optimistic and concerns still exist on return on investment (ROI), potential benefits, integration, and other issues. Some items are of less concern, including cost, standards, and...

RFID adoption and implementation in warehousing

The task of classifying observations into known groups is a common problem in decision making. A wealth of statistical approaches, commencing with Fisher's linear discriminant function, and including variations to accomodate a variety of modeling assumptions, have been proposed. In addition, nonparametric approaches based on various mathematical programming models have also been proposed as solutions. All of these proposed aolutions have performed well when conditions favorable to the specific model are present. The modeler, therefore, can usually be assured of a good solution to his problem of he chooses a model which fits his situation. In this paper, the performance of a neural network as a classifier is evaluated. It is found that the performance of the neural network is comparable to the best of otheother methods under a wide variety of modeling assumptions. The use of neural networks as classifiers thus relieves the modeler of testing assumptions which would otherwise be critical to the performance of the usual classification techniques.

A neural network approach to the classification problem

Expert systems and neural networks each have technical strengths and weaknesses. This article explores how the integration of these two technologies overcomes the weaknesses of both

INTEGRATING EXPERT SYSTEMS AND NEURAL NETS Exploring the Boundaries of AI

Some experts predict RFID will be the next big technology to revolutionize supply chain management. The RFID mandates by the Department of Defense (DOD), Federal Drug Administration (FDA), and retail companies have required organizations to implement RFID technology. Other companies are evaluating the potential costs and benefits of such adoption. In order to establish benchmarks on RFID adoption, this study surveyed readers of Paperboard Packaging magazine and members of the European Federation of Corrugated Board Manufacturers (FEFCO) to see if they are implementing RFID technology and challenges they may face. The results indicate about 52% of responding companies are not currently considering RFID technology because of the cost concerns. Companies that are implementing or considering RFID are doing it because of their customer requirements although they are concerned about the cost of RFID tags and cost of implementation. Companies that are implementing RFID are somewhat satisfied with RFID implementation.

/pdf/an-exploratory-study-of-rfid-adoption-in-the-paperboard-49cvgt23ce.pdf

Barbara A. Osyk

Papers

An empirical study of RFID implementation in the warehousing industry

RFID adoption and implementation in warehousing

A neural network approach to the classification problem

INTEGRATING EXPERT SYSTEMS AND NEURAL NETS Exploring the Boundaries of AI

An Exploratory Study of RFID Adoption in the Paperboard Packaging Industry