Showing papers on "Procurement published in 1981"

An analysis of single item inventory systems with returns

Abstract: Inventory systems with returns are systems in which there are units returned in a repairable state, as well as demands for units in a serviceable state, where the return and demand processes are independent. We begin by examining the control of a single item at a single location in which the stationary return rate is less than the stationary demand rate. This necessitates an occasional procurement of units from an outside source. We present a cost model of this system, which we assume is managed under a continuous review procurement policy, and develop a solution method for finding the policy parameter values. The key to the analysis is the use of a normally distributed random variable to approximate the steady-state distribution of net inventory. Next, we study a single item, two echelon system in which a warehouse (the upper echelon) supports N(N ⩾ 1) retailers (the lower echelon). In this case, customers return units in a repairable state as well as demand units in a serviceable state at the retailer level only. We assume the constant system return rate is less than the constant system demand rate so that a procurement is required at certain times from an outside supplier. We develop a cost model of this two echelon system assuming that each location follows a continuous review procurement policy. We also present an algorithm for finding the policy parameter values at each location that is based on the method used to solve the single location problem.

Simulation Modeling Improves Operations, Planning, and Productivity of Fast Food Restaurants

Abstract: This paper describes how a major fast food restaurant system uses simulation to dramatically improve efficiency, productivity, and sales in its more than 3,000 restaurants worldwide. With a capacity to project and solve business problems, Burger King Corporation has been able to upgrade and streamline restaurant operations, contributing significantly to the continued growth of what is now the second largest restaurant system in the world. Among the substantial changes in the last five years, the introduction of drive-thru service and new menu items has transformed a once simple operation into a sophisticated production process. Consequently, management turned increasingly to Operations Research for answers to operational questions ranging from the most efficient restaurant design to the optimum number of employees needed to serve customers as sales vary. The impact of simulation models has produced millions of dollars in savings, or profits, in a number of operational, design, and procurement areas.

Purchasing: Selection and Procurement for the Hospitality Industry

Abstract: Provides a thorough and understandable examination of the procedures and principles of purchasing for the hospitality industry. Working from the manager's viewpoint, it details generally accepted practices for procuring supplies and provides invaluable guidance for calculating product costs, order sizes, the economics of bargain shopping and more. New features of this edition include expanded coverage of food cost calculation and updated product specification outlines with a discussion of entries for all product categories and examples.

The Role of the Multinational Corporation

Abstract: The purpose of this paper is to evaluate the role of the multinational corporation in achieving economic efficiency and equity in international agricultural trade and development. In evaluating this institution, I prefer broad and rather imprecise definitions: "a cluster of corporations of diverse nationality joined together by ties of common ownership and responsive to a common management strategy" (Vernon, p. 114) or "all enterprises which control assets-factories, mines, sales offices and the like in two or more countries" (United Nations, p. 158). These institutions may be privately, publicly, cooperatively, or governmentally owned and have their principal headquarters in either a developed or a developing country. The strength of each entity depends on its ability to provide market access, raw material procurement, appropriate technology, management, financial packages, risk management, logistics, and coordination to a global food system in an efficient and profitable manner that is responsive to the economic, social, and political priorities of the governments of the nations in which it operates. The strategies of multinational entities are affected more by individual governmental actions than by any other factor.

The Role of Procurement in New Product Development

Abstract: Experience in industry has emphasised the importance of supply markets in planning. Those experiences, particularly over shortages, have resulted in many organisations taking supply factors into their corporate plans for the first time. However, in most such cases the motivation for including that planning input has been defensive — most often because:

Life cycle costing by state governments

Abstract: To encourage energy conservation, Congress established the State Energy Conservation Program under the Energy Policy and Conservation Act of 1975 (EPCA). This law authorized federal assistance to states for the preparation and execution of energy conservation plans. There are five mandatory measures required for participation in this assistance program, one of which is that each state adopt: ". . . mandatory standards and policies relating to energy efficiency to govern the procurement practices of such state and its political subdivisions."' A July 1979 evaluation of this requirement by the Environmental Law Institute for the U.S. Department of Energy, however, found that: ".... state and local energy efficient procurement programs, with few exceptions, have barely advanced beyond infancy. This article focuses chiefly on the activities of those governments which have been exceptions to this generalized observation. The principal energy efficient purchasing practice used by these governments is life cycle costing (LCC). Explanation will be made of how to perform LCC and what types of products lend themselves most readily to this practice. Next, there will be a discussion of the significant psychological, structural, and procedural barriers which make it difficult for both state and local governments to perform LCC. Finally, a number of suggestions will be offered as to how these barriers can be partially overcome.

Factors Affecting the Use of Competition in Weapon System Acquisition

Abstract: : This report examines methods for improving the effectiveness of competition in the acquisition of major weapon systems. Use of competition at the concept design stage is known to be inexpensive relative to benefits. However, competition is rare during procurement when the expense is immediate and any savings are delayed. Existing analysis provides no means for evaluating competitive reprocurement. Savings on competitively reprocured electronic items have been substantial but the factors explaining this are unknown. The best point in production at which to introduce a second source cannot now be determined. Also unclear is whether competitive reprocurement pays off for complex systems. Because price-competitive reprocurement strategies are one of the simplest and most quantifiable uses of competition, this study recommends improved data collection on current competitive acquisition, and further theoretical study of the function of competition in such acquisition.

The training of project managers

Abstract: PROJECT: from the primary school pupil to the company chairman, we all have a feeling for what the word means. Indeed, many of us quite consciously organise aspects of our everyday lives on a project basis, whether it be organising for the annual holidays, or getting ready for Christmas. Professional organisations, whether industrial concerns, commercial undertakings, the Public Services or the Armed Services, frequently and increasingly organise the tasks they have to perform, which are distinguishable from their on‐going day‐to‐day activity, into projects. Precisely what a project is will vary considerably from organisation to organisation. To a chemical plant contracting company for example, it could be the specification, design, procurement, erection and commissioning of a £100 M or more fertiliser complex, or any one of a multitude of sub‐projects within this overall master project. It is not only engineers who organise their work in this way: market research will generally be conducted on a project basis; even scientific research is usually organised this way. In the latter case, this may be rather artificial since the projects may really be quantised (by money, effort or time) parts of continuing day‐to‐day activity, but the necessity for effective managerial control dictates the need for a project system.

Corporate Planning and Procurement in Multinational Firms

Abstract: In Chapter One it was argued that multinational companies should give adequate emphasis to procurement factors in their corporate planning. While this argument is difficult to refute, many multinational companies do not pay sufficient attention to this aspect of their planning. This article presents some of the conclusions from a study which investigated the extent to which procurement factors were considered in the planning of these firms.

Equipment Procurement and Rate of Return

Abstract: The procurement of large and expensive equipment presents the contractor with some very difficult decisions concerning how such acquisitions should be financed. An important consideration in this regard is the after-tax rate of return that the contractor can expect to receive on his equipment investment. Using discounted cash-flow methods, the rates of return are computed for several procurement alternatives including a true-lease, full-equity purchase, and several instances of financed purchase. Based upon after-tax rates of return, the lease and financed purchase with minimal down payment are shown to be the most desirable procurement alternatives for the acquisition example analyzed. However, other practical considerations are involved and their effect upon the total decision process is discussed.

Streamlining PPBS to Better Manage National Defense

Abstract: 21. This paragraph summarizes findings in Tether's, Governmental Procurement and Operations, p. 26. Sources of explanation for this description are: The Florida Life Cycle Analysis Manual and the Florida Energy Conservation Manual, both prepared for the Florida Department of General Services (DGS) by PGA Engineers, Inc. of Tampa, Florida (Consultant: Syska and Hennessy, Inc. of New York City), March 1975. Additional information source is telephone interview of Thomas A. Sechler, administrator of the Bureau of Construction, DGS, by Richard Reeve, a research assistant at ELI. 22. The actual application of LCC to government building construction is complex. In addition to state laws and administrative procedures describing this process, another source of information on the subject is Energy Conservation Design Guidelines for New Office Buildings prepared by the U.S. General Services Administration, 2nd ed. (Washington, D.C., July 1975). 23. Russell, Energy Efficient Procurement, p. 4. 24. Tether, Governmental Procurement and Operations, p. 14. 25. Attorney General's Opinion to North Carolina Department of Commerce, Energy Division (March 30, 1977). 26. Russell, Energy Efficient Procurement, p. 7. The eight states are: Minnesota, Florida, Ohio, Arizona, Kentucky, Hawaii, Tennessee, and New Jersey. 27. Runke, Final Report: Energy Conservation, p. 7. 28. For a summary of the state statutes, see Russell, Energy Efficient Procurement, pp. 7-10. 29. This was the finding of the nationwide survey of energyefficient procurement practices conducted by the Council of State Governments. See Runke, Final Report: Energy Conservation, p. 25. 30. Runke, Final Report: Energy Conservation, p. 12. 31. Ibid., p.. 12. 32. For a discussion of organizational decline and cutback management, see Charles H. Levine, Symposium Editor, "Organizational Decline and Cutback Management," Public Administration Review, July/August 1978, pp. 315-357. Also see on the subject of resource scarcity, Jerry McCaffery, Special Issue Editor, "The Impact of Resource Scarcity on Urban Public Finance," Public Administration Review, January 1981. 33. Telephone conversation with Mr. Roger A. Lundquist, North Carolina Division of Purchase and Contract, Department of Administration (February 17, 1981). Savings on air conditioners, light utility vehicles, autos, and station wagons were in BTUs and were converted to dollar savings by the author.

The Job Module: An Alternative Approach to Contract Procurement, Training, and Curriculum Development.

Abstract: The work activity center (WAC) has been severely criticized in recent times for its inability to provide clients with an adequate work component. The focus of this criticism is on the lack of quality and remunerative subcontracts and the inability of WAC to combine production and training to satisfactorily meet the developmental needs of the clients. This paper is an attempt to address these problems by proposing a new model which can be utilized by WAC. The model is based on the job module which is a work task utilized in training, curriculum development, and subcontract procurement. The goals of the model include the development of (a) a competent workforce, (b) a contract procurement, and (c) a training curriculum. As products of our culture, 841 work activity WACs comes in the form of subcontracts, centers exist throughout the United States These subcontracts represent work pro (Greenleigh, 1975). A work activity center is cured from business or industry that is corn defined as a facility which develops the life pleted in the WAC and, in turn, returned to coping skills within severely disabled indibusiness or industry. The subcontract work viduals in order that they may become more typically procured for the WAC has been independent in their home community severely criticized for a variety of reasons. (Brolin, 1976). Gold (1973) asserted that subcontracts are One of the major deficiencies of the work usually composed of very menial work with activity center (WAC) has been the lack of the lowest of remuneration for the WAC an adequate component which meets the clients. In a similar vein, Stanfield (1973) re needs of the clients. Many problems have ported that in a survey of 120 graduates been cited in reference to this component, (moderately retarded), 40% of the graduates including the lack of adequately trained were in sheltered workshops. Eighty percent staff, the absence of a true work environof those in workshops were earning less than ment, the absence of opportunities to inter$10.00 each for fulltime employment while act with nonhandicapped workers, and the an astounding 50% earned less than $5.00 overall inadequacy of the work necessary to per week. Other researchers (Brolin, 1976; support the work component (Greenleigh, Greenleigh, 1975; Power & Marinelli, 1974) 1975; Levy, 1980; Pomerantz & Marholin, reached similar conclusions and, in addition, 1977). While each of these problems prelabeled the work as simple, routine, and un sents major obstacles to the vocational dechallenging. velopment of the clients served by the WAC, Gold (1973) presented several reasons for none seem more fundamental than the inthe lack of quality and remunerative subcon adequacy of the work comprising the work tracts. Among them are the following: (a) component. lack of a fulltime procurement person, (b) The type of work found in the majority of workshop personnel's lack of confidence in 288 / Education and Training of the Mentally Retarded-December 1981 This content downloaded from 207.46.13.86 on Sun, 16 Oct 2016 04:46:16 UTC All use subject to http://about.jstor.org/terms the client's ability to perform more meanthe main goal of the work sample, argu ingful tasks, and (c) business and industry's ments both for and against its predictive va lack of confidence in the client's ability to lidity proliferate the rehabilitation literature perform meaningful tasks. (Brolin, 1976; Cohen & Penner, 1976; Gold, A problem, in addition to the quality and 1973; Gordon and Kleinman, 1976; Ladas, remunerative aspects of work, is one of pro1961; Mount, Muchinsky, & Hanser, 1977; duction versus training. Mallas (1976) sugNeff, 1968; Patterson, 1964; Pruitt, 1970; gested that few workshops have been sueSchmidt, Greenthal, Hunter, Berner, & Sea cessful at combining both training and ton, 1977; Schreiner, 1978; Stodden, Casale production, and consequently have done a & Schwartz, 1977; Tobias, & Gorelick, 1960; questionable job in both areas. This point is Wolfensberger, 1967). well taken in light of two other consideraOne of the most widely recognized theo tions; (a) often when subcontracts are ries of work sample validity is the point-to brought into the workshop all other aspects point theory described by Asher and Sciar of training cease while full attention is dirino (1974). Basically, the theory states the rected toward completion of the work; (b) more points the sample has in common with the staff is often unprepared for the subthe actual job, the higher the validity coef contract and consequently have not set up ficient. Although several systems (e.g., training situations or optimum production Tower, Singer, Valpar, Views) exist, these situations, thus virtually eliminating the parnationally standardized work sample systems ticipation of lower functioning clients. have very low point-to-point correspon With the recent advances in training and dence to local job markets and the systems demonstrations of client potential to comare often too expensive for the average plete work tasks (Bellamy, Horner, & Inman workshop. 1977, 1979; Berkson & Landesman-Dwyer, The model proposed is a new approach 1977; Crosson, 1969; Gold, 1972, 1976; for the utilization of the work sample. This Levy, 1975; Tate & Baroff, 1967), issues remodel advocates a new concept, the job garding the type of subcontract work commodule. Specifically, a job module is a work pleted and production versus training have task with high point-to-point correspondence to lo come to the forefront of the workshop cal business and industrial tasks which, in turn, client's development. These issues pose seis utilized in training, curriculum development, rious problems for the WAC and in view of and subcontract procurement. this, a workable model is suggested—a model that is responsive to the needs of the „ . . , . . . ,. i ■ i • • , i . , Overview of the lob Module Approach handicapped individual and at the same time responsible professionally to provide Six steps are envisioned in the development training and production stituations. of the job module (see Figure 1). This model is developed from a tradi tional concept, the work sample, which has been characterized as work sample, a simu lated task or work activity for which there The contract procurement person must exists no industrial or business counterpart have a working knowledge of local business (Brolin, 1976); and job sample, models or reand industry. The procurement person productions of a job or part of a job that should characterize work sites by size, loca exists in industry, business, or other settings tion, products manufactured or sold, and (Brolin, 1976; Sanlovsky, Arthur, & Mann, appropriate contact person. 1971). Originally the work sample was viewed as an evaluative instrument. Pruitt (1970) stated that the work sample evaluation The procurement person should establish evolved from the inability of psychological priority locations. Since little is known about tests to adequately assess the handicapped the companies at the initial contact, the population. Although prediction has been priorities should be based on the judgment Local Market Analysis

An Approach to the Application of Life Cycle Cost Concept in Weapon Systems Acquisition for the Venezuelan Navy.

Abstract: : This thesis presents a review of the Life Cycle Cost (LCC) concept as it is applied in weapon systems acquisition. A methodology is developed for preparing estimates of the Support Investment (SI) and Operating and Support (O&S) costs of ship's acquisition programs. The use of cost models in LCC procurement is analyzed. Also, a methodology for implementation of Life Cycle Cost procurement within the Venezuelan Navy is presented. The study constitutes an attempt to introduce the Life Cycle Cost concept within the Venezuelan Navy, therefore the author has avoided indulgence into detailed subsystems, and has concentrated on the working and interrelationships within an entire system.

Training Procurement Personnel in Negotiating Skills

Abstract: Considerable interest has been shown recently in developing the negotiating skills of procurement personnel. This article outlines one approach to such development which has been used in in‐company training programmes. It describes the simulation method which has been used as the core of more than 200 such programmes, presents the results of a research study carried out in 12 of the 70 corporations in Europe which have participated in these training programmes, and sets out some conclusions which have been drawn from the empirical knowledge gained in running the whole series of programmes. It is hoped that this discussion will prove useful to procurement managers, management trainers, business school professors, and others who are concerned with the development of negotiating skills.

International Logistics Management at General Motors: Philosophy and Practice

Abstract: Corporate level examination of international logistics problems in formal fashion is a relatively recent occurrence at General Motors. International Logistics Operations (ILO) was created in June, 1977, and was made a part of Procurement, Production Control and Logistics Staff. The Director of International Logistics Operations reports to the Executive Director of Logistics and is charged with responsibility for the coordination of all international transportation activities.

Drawing Lessons from History

Abstract: In order to know where we are going it's often useful to know where we have been. Accordingly, Dr David Farmer draws on some historical examples to illustrate the growth of procurement as an essential component of industrial development.

Proposed system for the use of evaluation factors in the source selection of service contractors

Abstract: : Technical personnel are increasingly being required to perform vital functions as proposal evaluators in the source selection process for which they have not properly been trained. This research effort provides a comprehensive system for source selection using price and other factors in a form aimed at the technical professionals that support field acquisition activities. All examples selected are from the general acquisition area of service contracting. The system consists of the basic considerations necessary for preparation of a procurement request, the basic elements of a source selection plan, selection of a technical evaluation panel, selection of evaluation factors for service contractors, preparation of negotiation objectives, the actual conduct of evaluations and negotiations, and debriefing of unsuccessful offerors. (Author)

Strategic-materials shortages: institutional and technical issues

Abstract: Congress, the press, and technical publications have recently become interested in the implications of US dependence on imports for more than 20 nonfuel materials. This interest is reflected in new policies regarding the acquisition of materials for the National Defense Stockpile; a directive by Congress: the National Materials and Minerals Policy, Research and Development Act of 1980; and the Deep Seabed Hard Mineral Resources Act. The purpose of this paper is to summarize the institutional and technical issues involved. The main issue is the vulnerability of the defense and industrial needs for these materials to the sudden disruptions in price or supply that could arise because of cartels, war, or policies to deny materials to Western nations. Market forces alone may not protect the vital interests of the nation, and government policies to mitigate against such disruptions may be in order. Such policies could include incentives to develop lower-grade resources, to carry out research aimed at improving recovery techniques for lower-grade or alternative ores, and to conduct research on materials fabrication, substitution, and conservation.

Management Of Shiva Optics

Abstract: In the design and procurement of a high power laser system such as the Shiva Fusion Laser at LLNL, the optical components are the single most important aspect for optimum laser performance. The cost, schedule and quality of the optics are the driving parameters for the entire program and many factors are involved in controlling, monitoring and evaluating these parameters. These factors include (1) the procurement cycle, (2) knowledge of the vendors, (3) realistic specifications, (4) understanding of the fabrication process, (5) the quality control and test requirements. Guidelines and examples of the methods used in the procurement and qualification of the optics in Shiva will be presented.

Transit car procurement: breakthrough in buffalo

Abstract: The author describes how Buffalo organised negotiations with prospective suppliers of coaches for its urban and suburban transport network. A comparison with Cleveland and Philadelphia is given.

Integrating Arms Limitation and Defense Procurement Planning: The Impact of Emerging Technologies

Abstract: : Arms limitation and defense procurement policies should be complementary means of achieving national security objectives. Past experience with arms limitation negotiations yields important lessons about the circumstances in which arms limitation agreements can be reached. Experience also suggests the need for an improved process of net strategic and technical assessment to evaluate possible arms limitation regimes. (Author)

Sealane defense : an emerging role for the JMSDF?.

Abstract: : Japan's economy, the third largest in the world, is totally dependent on the sea lines of communication for the importation of 90 percent of its energy requirements and strategic metals and for over 70 percent of its food. Despite the importance of the sealanes to Japanese security, the Japanese Maritime Self Defense Force (JMSDF) remains incapable of protecting those sealanes against interdiction. Although the JMSDF is currently the seventh largest navy in the world, future expansion has been stymied by Japan's steadfast refusal to increase defense spending above one percent of the GNP. Long-range procurement plans focus on qualitative improvements with a primary emphasis on anti-submarine warfare, a strategy which could foreshadow a building program to enable the JMSDF to control the vital sea lanes. On the other hand, political and domestic constraints on a strong military indicate a continuing reliance on the United States for Japan's security. This study examines the factors affecting military decision-making in Japan, looks into the problems and realities of sealane defense and analyzes the future prospects for the JMSDF. (Author)

Wealth, Prices, And The Power To Requisition: The New Economic Policy In The Soviet Union

Abstract: This paper constructs a game theoretical model of the N.E.P. (New Economic Policy, 1921-1930) in the Soviet Union. The N.E.P. is modeled as a cooperative income redistribution game, whose solution concept is the Shapley value. Special attention is paid to the connection between politi cal power, as measured by party strength, and economic power, inversely related to the taxation rate. The equation relating peasant party strength and the state grain procurement rate is fitted for the available data, 19251930. The model shows clearly the relationship between falling political power of the peasants and the rising rate of grain procurement by the state that were hallmarks of the N.E.P. The aftermath of the N.E.P. is inter preted in light of these results.