Showing papers on "Capacity utilization published in 2007"

The New Consensus on Monetary Policy and its Post-Keynesian Critique

Abstract: This paper seeks to look at the underlying framework of the New Consensus models, providing a Post-Keynesian critique. In the light of this critique, the model is reformulated, with its basic structure intact, but with alternative post-Keynesian specifications of the Phillips curve being considered. It is shown that such modifications, either allow a long run trade-off between the rate of inflation and the level of output, the rate of capacity utilization and, therefore, unemployment, or, in our preferred specification, changes in output and capacity have no implications for inflation over a large range of capacity utilization.

Forecasting turning points in shipping freight rates: lessons from 30 years of practical effort

Abstract: We argue that it is possible to explain much of the history of the world’s shipping markets since 1950 as the interaction of two balancing feedback loops: a capacity adjustment loop which creates a roughly 20-year wave, and a capacity utilization adjustment loop which generates a roughly 4year cycle. We show how this insight has been used rather successfully since the early 1980s for practical forecasting of turning points in freight rates and the “sentiment” in the shipping market 1–4 years ahead of time. The basic mechanisms in the shipping system create a strong “deterministic backbone” which is visible through the exogenous noise, and hence predictable with useful precision. Our experience leads to a number of questions concerning system dynamics best practice for future research. Copyright © 2007 John Wiley & Sons, Ltd. Syst. Dyn. Rev. 23, 253–284, (2007)

Production planning with load dependent lead times: an update of research

Abstract: Lead times impact the performance of the supply chain significantly. Although there is a large body of literature concerning queuing models for the analysis of the relationship between capacity utilization and lead times, and another body of work on control and order release policies that take lead times into consideration, there have been relatively few aggregate planning models that recognize the (nonlinear) relationship between the planned utilization of capacity and lead times. In this paper we provide an in-depth discussion of the state-of-the art in this area, with particular attention to those models that are appropriate at the aggregate planning level.

Network performance assessment apparatus, systems, and methods

Abstract: Various embodiments of network performance assessment apparatus, systems and processes collect performance information pertaining to a current capacity utilization of a network, identify an occurrence of a capacity constraint on a portion of the network that is communicating the program to at least one presentation device, and modify at least one characteristic of the program and/or the communication thereof over the network so that a total capacity utilization of the network is less than a peak capacity of the network.

Multiobjective long-term planning of biopharmaceutical manufacturing facilities.

Abstract: Biopharmaceutical companies with large portfolios of clinical and commercial products typically need to allocate production across several multiproduct facilities, including third party contract manufacturers. This poses several capacity planning challenges which are further complicated by the need to satisfy different stakeholders often with conflicting objectives. This work addresses the question of how a biopharmaceutical manufacturer can make better long-term capacity planning decisions given multiple strategic criteria such as cost, risk, customer service level, and capacity utilization targets. A long-term planning model that allows for multiple facilities and accounts for multiple objectives via goal programming is developed. An industrial case study based on a large scale biopharmaceutical manufacturer is used to illustrate the functionality of the model. A single objective model is used to identify how best to use existing capacity so as to maximize profits for different demand scenarios. Mitigating risk due to unforeseen circumstances by including a dual facility constraint is shown to be a reasonable strategy at base case demand levels but unacceptable if demands are 150% higher than expected. The capacity analysis identifies where existing capacity fails to meet demands given the constraints. A multiobjective model is used to demonstrate how key performance measures change given different decision making policies where different weights are assigned to cost, customer service level, and utilization targets. The analysis demonstrates that a high profit can still be achieved while meeting key targets more closely. The sensitivity of the optimal solution to different limits on the targets is illustrated.

Comparison of Protection Mechanisms: Capacity Efficiency and Recovery Time

Abstract: High efficiency in capacity utilization and fast restoration are two primary goals of survivable design in optical networks. Shared backup path protection has been shown to be efficient in terms of capacity utilization, due to the sharing of backup capacity. However, sharing of backup capacity also complicates the restoration process, and leads to slow recovery. Ring-type protection in mesh topology, on the other hand, has the advantage of fast restoration. The p-cycle scheme is the most efficient ring-type protection method in terms of capacity utilization. Recently, the concept of pre-cross-connected protection was proposed to increase the recovery speed of shared path protection. We overview these protection methods and their failure recovery processes. The recovery time of these schemes are compared analytically. To compare the capacity efficiency, we formulate integer programming optimization problems for three protection methods in static traffic scenario, considering wavelength continuity constraint. We investigate the effect of network connectivity on the performance of capacity utilization of the methods by experimenting on topologies with different average nodal degrees.

Strategies to overcome network congestion in infrastructure systems

Abstract: Networked Infrastructure systems deliver services and/or products from point to point along the network. Demand for the services provided by such systems is typically cyclic, creating inefficiencies in capacity utilization. Congestion pricing provides incentives to shift demand from peak time periods to lower demand periods. This effectively increases the capacity of the system without the need for additional capital investment. This paper investigates the potential for congestion pricing to reduce necessary infrastructure investments in the United States. Several types of congestion pricing schemes are presented, along with existing implementations across multiple infrastructure systems. We find over $20 billion in potential annual savings in electricity and road systems alone in the United States from implementing congestion pricing schemes.

Capacity management of nursing staff as a vehicle for organizational improvement

Abstract: Background: Capacity management systems create insight into required resources like staff and equipment. For inpatient hospital care, capacity management requires information on beds and nursing staff capacity, on a daily as well as annual basis. This paper presents a comprehensive capacity model that gives insight into required nursing staff capacity and opportunities to improve capacity utilization on a ward level. Methods: A capacity model was developed to calculate required nursing staff capacity. The model used historical bed utilization, nurse-patient ratios, and parameters concerning contract hours to calculate beds and nursing staff needed per shift and the number of nurses needed on an annual basis in a ward. The model was applied to three different capacity management problems on three separate groups of hospital wards. The problems entailed operational, tactical, and strategic management issues: optimizing working processes on pediatric wards, predicting the consequences of reducing length of stay on nursing staff required on a cardiology ward, and calculating the nursing staff consequences of merging two internal medicine wards. Results: It was possible to build a model based on easily available data that calculate the nursing staff capacity needed daily and annually and that accommodate organizational improvements. Organizational improvement processes were initiated in three different groups of wards. For two pediatric wards, the most important improvements were found to be improving working processes so that the agreed nurse-patient ratios could be attained. In the second case, for a cardiology ward, what-if analyses with the model showed that workload could be substantially lowered by reducing length of stay. The third case demonstrated the possible savings in capacity that could be achieved by merging two small internal medicine wards. Conclusion: A comprehensive capacity model was developed and successfully applied to support capacity decisions on operational, tactical, and strategic levels. It appeared to be a useful tool for supporting discussions between wards and hospital management by giving objective and quantitative insight into staff and bed requirements. Moreover, the model was applied to initiate organizational improvements, which resulted in more efficient capacity utilization.

Extended Price Cap Mechanism for Efficient Transmission Expansion under Nodal Pricing

Abstract: This paper examines the regulatory incentive mechanisms for efficient investment in the transmission network under the ISO and Gridco institutional framework. By considering a new element associated with power flow, we develop an extended price cap mechanism that can properly internalize technological externalities among transmission lines. We show that the new mechanism can induce the Gridco to achieve the long-term optimal capacity expansion in the presence of technological externalities, while the ISO continuously promotes efficient capacity utilization in the short run under nodal pricing.

Optimum Airport Capacity Utilization under Congestion Management: A Case Study of NY LaGuardia Airport

Abstract: (4804 words, including abstract) Abstract. In the United States, most airports do not place any limitations on airline schedules. At a few major airports, the current scheduling restrictions (mostly administrative measures) have not been sufficiently strict to avoid consistent delays and have raised debates about both the efficiency and the fairness of the allocations. With a forecast 1.1 billion yearly air travelers within the U.S. by 2015, airport expansion and technology enhancement alone are not enough to cope with the competition-driven scheduling practices of the airline industry. The policy legacy needs to change to be consistent with airport capacities.

A new method for the estimation of capacity utilization: theory and empirical evidence from 14 eu countries

Abstract: In this paper, we develop a new and at the same time simple method of obtaining a measure of the rate of capacity utilization (CU) which makes use of the structural vector autoregression (SVAR) system of equation estimating technique with long-run restrictions. The measure of CU that we derive for each of 14 EU countries replicates to a great extent the European Commission's Directorate General for Economic and Financial Affairs (ECFIN) measure. On closer examination we find that the in-sample explanatory content with respect to the inflation rate of the SVAR measure exceeds more often than not that of the ECFIN's measure; however, the out-of-sample forecasting performance of the two models is approximately equivalent.

Distribution and Growth in an Economy with Heterogeneous Capital and Excess Capacity

Abstract: In a world of heterogeneous capital the aggregate capital-capacity ratio can change in a complicated way as the real wage rate changes and, therefore, nothing useful can be said, a priori, about the relationships between the real wage rate (or the aggregate profit share), the degree of capacity utilization and the rates of profit, capital accumulation and interest.

Production Planning and Industrial Scheduling: Examples, Case Studies and Applications, Second Edition

Abstract: In today's extremely competitive manufacturing market, effective production planning and scheduling processes are critical to streamlining production and increasing profits Success in these areas means increased efficiency, capacity utilization, and reduced time required to complete jobs From the initial stages of plant location and capacity dete

Industrial Production and Capacity Utilization: The 2006 Annual Revision

Abstract: On December 11, 2006, the Federal Reserve published revisions to its index of industrial production and the related measures of capacity and capacity utilization. The revision affected the data from 1972 through October 2006, but the largest changes were for the period beginning in 2003. From the fourth quarter of 2002 to the third quarter of 2006, industrial production, as revised, increased about 13/4 percentage points less than previously reported. By year, the change in output was revised down a little for 2003, down substantially for 2004, up a little for 2005, and down a touch for 2006. Revisions for previous years were small.

Fast-Track Profit Models

Abstract: The authors propose the new approach to due diligence that employs sophisticated business modeling to identify profit opportunities in advance of an acquisition. They call it Fast-Track Profit Models, which leverages advances in process models and costing. Today, industry process templates can be customized to simulate actual operations of a prospective acquisition. Transaction data from the prospect can be run through this model to provide valuable and accurate insight into business profitability and performance across the enterprise. Specific opportunities and risks can be more rigorously identified. Synergies can also be quantified. The purpose of this article is to add a new tool that focuses on the specific opportunities to boost the profitability of the company. Through the new Fast-Track Profit Models, buyers can enjoy more accurate profitability, cost, and capacity utilization across the enterprise in days instead of months. These models highlight which specific customers, sales representatives, contracts, products, services and vendors are undermining profitability, and which changes can be made to enhance profits. This can be used for valuation, post-merger management, problem identification, exit strategies, and fundraising. In this article, the author will explain how this new tool works, demonstrate its success, and discuss its potential usage for would be acquirers, whether they be industry insiders or financial outsiders.

Distribution and Growth in an Economy with Heterogeneous Capital and Excess Capacity

Abstract: In a world of heterogeneous capital the aggregate capital-capacity ratio can change in a complicated way as the real wage rate changes and, therefore, nothing useful can be said, a priori, about the relationships between the real wage rate (or the aggregate profit share), the degree of capacity utilization and the rates of profit, capital accumulation and interest.

System and method for network capacity engineering

Abstract: A system for managing network capacities is disclosed. The system comprises a processor implementing a data collection module configured to collect a plurality of capacity utilization data. The processor also implements a capacity analysis module configured to produce an actual capacity utilization map using the plurality of capacity utilization data. The capacity analysis module is also configured to produce a projected capacity utilization map using a plurality of designed node and link capacities, and a plurality of capacity engineering constraints. The processor also implements a simulation module configured to simulate a network management action and to produce simulated capacity utilization maps. The processor also implements a network management action module configured to suggest network management actions based on the actual capacity utilization map and the projected capacity utilization map and to rank the one or more network management actions based on the one or more simulated capacity utilization maps.

The role of excess capacity in determining market power in natural gas transportation markets

Abstract: The approval by FERC of a regulated natural gas pipeline’s market-based rate application depends upon the availability of substitute pipelines with sufficient capacity to maintain the current transport price. But how much alternate capacity is enough? Clearly, the price will not increase when alternate pipelines have unsubscribed capacity equal to the capacity of the applicant pipeline, since the applicant’s capacity is then perfectly substitutable. And indeed, FERC has approved market-based rates when this “complete-replacement” criterion has been met. However, complete-replacement is too stringent a condition and we determine precisely how much alternate capacity suffices to keep the price from rising.

Dynamic Adjustments in Transfer Pricing Agreements

Abstract: This paper examines the issue of using past economic performance to benchmark transfer prices in advance pricing agreements (APAs) and explores methods that allow transfer prices to reflect current economic performance. The paper applies these methods to the electronics industry and finds that capacity utilization provides a much better proxy for current economic performance than does the typical interquartile range of profits of comparable companies generated over some historic interval prior to the APA. While taxpayers who benchmark results on capacity utilization lose the certainty of a fixed range, they gain by allowing transfer prices to reflect changing economic conditions.

Fishing capacity management

Abstract: Excess fishing capacity has been identified as one of the most pernicious problems affecting long-term sustainability and biodiversity of fishery resources and economic viability of fishing operations. Significant economic gains could be achieved by eliminating excess capacity, in addition to attaining objectives of resource sustainability. In this paper, approaches to fishing capacity management are reviewed in the context of Indian fisheries. A rights based regulated access system under a co-management regime based on a strong inclusive cooperative movement of stakeholders with built-in transferable quota system and buy-back or rotational right of entry schemes seems to hold potential for capacity management in the shelf fisheries of Indian states, which need to be implemented in collaboration with the Union Government and the neighboring states with confluent ecosystems and shared fishing grounds. A key advantage of the use of rights based approaches for managing fishing capacity is that they provide a mechanism through which stakeholders can more easily and actively participate in the management process.

Assessing Market Functioning: The Case of the Hungarian Milk Chain

Abstract: The paper discusses the impact of market power in the Hungarian milk chain. In a first step a vector error correction model is estimates to assess whether a domestic market for raw milk exists. Since the answer was positive we proceed by developing a structural market model of the Hungarian market for raw milk that is able to identify a possible affect of market power on resource allocation. A nonlinear 3SLS approach was applied to estimate the supply and the demand for raw milk. The results provide that despite the high concentration of in dairy processing the indications for market poser are rather limited. The Bertrand like equilibrium can be attributed to the low degree of capacity utilization in dairy processing and the marketing alternative of farmers.