Search results

1 – 10 of over 4000

Abstract

Details

Economics, Econometrics and the LINK: Essays in Honor of Lawrence R.Klein
Type: Book
ISBN: 978-0-44481-787-7

Book part
Publication date: 30 September 2003

Marybeth M Murphy and Joanne P Healy

Recent events have shown that earnings management is a significant problem in the business world and that the culture in place in many organizations may encourage managers to…

Abstract

Recent events have shown that earnings management is a significant problem in the business world and that the culture in place in many organizations may encourage managers to manipulate earnings. While prior research has shown that earnings management exists at the corporate level, it has not examined whether managers at the divisional level are motivated to manage earnings. The purpose of this study is to examine whether divisional managers will be more inclined to manage earnings in order to maximize personal wealth. The secondary research objective is to examine whether the information frame will impact discretionary management accounting decisions. Members of the Institute of Management Accountants participated in an earnings management study in which two conditions were manipulated. First, the annual compensation of subjects was contingent on whether target income was met or not met. Second, information about a potentially obsolete inventory item was framed as either positive or negative. Subjects were asked the likelihood they would write off the potentially obsolete inventory. Research findings support the earnings management hypothesis and indicate that managers are less likely to write off obsolete inventory when their compensation is impacted by the write-off. Study results also reveal that the manner in which the inventory information is framed may affect managers’ write-off decision. These results are important as they may indicate that earnings management is more pervasive throughout the organization than previously shown.

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-84950-231-3

Book part
Publication date: 10 June 2021

John Bancroft and Di Li

This chapter covers three main concepts: it provides an overview of supply chain management (SCM), introduces the concepts of procurement and what is entailed within this…

Abstract

This chapter covers three main concepts: it provides an overview of supply chain management (SCM), introduces the concepts of procurement and what is entailed within this function, and explains how inventory is managed. In the first section, SCM is considered broadly but also in the context of hospitality. The key roles and objectives of SCM as well as the significance of supply chain risk and disruption are considered. In the second section, the concept of sourcing is discussed. Sourcing is a critical function in any organization: without this, an organization would cease to operate. The importance of supplier selection is explored, with methods to make the most appropriate selection and for subsequently managing suppliers. Finally, the third section focuses on how inventory management can be optimized. Concepts such as economic order quantity (EOQ) and ABC analysis are explored, along with alternatives to traditional inventory management methods.

Details

Operations Management in the Hospitality Industry
Type: Book
ISBN: 978-1-83867-541-7

Keywords

Abstract

Details

Economics, Econometrics and the LINK: Essays in Honor of Lawrence R.Klein
Type: Book
ISBN: 978-0-44481-787-7

Book part
Publication date: 6 September 2019

Feng Yang, Xue Li and Zhimin Huang

In an omnichannel environment, customers switch channels from product discovery to eventual purchase decision strategically. Hence, the biggest challenge for retailers nowadays is…

Abstract

In an omnichannel environment, customers switch channels from product discovery to eventual purchase decision strategically. Hence, the biggest challenge for retailers nowadays is how to operate an effective omnichannel strategy. To improve inventory operational efficiency, this chapter investigates the influences of price setting and customers’ return probability on inventory forecasting. Subsequently, we explore how retailers participate in providing appropriate information delivery and product fulfillment. Specifically, a stylized newsvendor model, which incorporates customers’ showrooming behavior, is developed to address retailers’ inventory problem. Furthermore, we compare the benefits of buy-online-and-pick-up-in-store (BOPS) and showroom strategy which originates offline but is completed online. Three main findings are obtained as follows: (1)online and offline inventory order quantities augment with the ascending of pricing offline and online, respectively. Meanwhile, the inventory decisions increase when customers’ return probability declines; (2) the implementation of showroom helps retailers expand their pure online market coverage than BOPS, while it reduces the total inventory quantity if the proposition of unit online inventory cost accounting for product price exceeds physical store; and (3) showroom strategy is more profitable than BOPS option as long as unit online inventory cost is small enough. In addition, we find this boundary where showroom increases total profit expands with the attenuating of return probability.

Book part
Publication date: 10 June 2021

Miguel Bendrao Baltazar and Yuan Li

Unlike manufacturing firms where the production of goods can be adjusted according to the demand of customers, hospitality firms do not have the ability to alter the capacity of…

Abstract

Unlike manufacturing firms where the production of goods can be adjusted according to the demand of customers, hospitality firms do not have the ability to alter the capacity of the changing demand of guests in a short period of time. Given the relatively fixed capacity or supply, maximizing revenue through inventory control is essential for hospitality operations. This chapter covers operations inventory control extracted from the field of revenue management. First, the concept of capacity management and planning is enclosed and various capacity management tactics and inventory control strategies are explored. Next, the management and principles of space inventory through inventory-based restrictions, strategic pricing, displacement analysis, and distribution channel management are addressed. Finally, the respective applications of these principles, strategies, and tactics in several hospitality sectors are discussed.

Details

Operations Management in the Hospitality Industry
Type: Book
ISBN: 978-1-83867-541-7

Keywords

Book part
Publication date: 21 July 2004

Pervaiz Alam and Eng Seng Loh

We examine the sample self-selection and the use of LIFO or FIFO inventory method. For this purpose, we apply the Heckman-Lee’s two-stage regression to the 1973–1981 data, a…

Abstract

We examine the sample self-selection and the use of LIFO or FIFO inventory method. For this purpose, we apply the Heckman-Lee’s two-stage regression to the 1973–1981 data, a period of relatively high inflation, during which the incentive to adopt the LIFO inventory valuation method was most pronounced. The predicted coefficients based on the reduced-form probit (inventory choice model) and the tax functions are used to derive predicted tax savings in the structured probit. Specifically, the predicted tax savings are computed by comparing the actual LIFO (FIFO) taxes vs. predicted FIFO (LIFO) taxes. Thereafter, we estimate the dollar amount of tax savings under different regimes. The two-stage approach enables us to address not only the managerial choice of the inventory method but also the tax effect of this decision. Previous studies do not jointly consider the inventory choice decision and the tax effect of that decision. Hence, the approach we use is a contribution to the literature. Our results show that self-selection bias is present in our sample of LIFO and FIFO firms and correcting for the self-selection bias shows that the LIFO firms, on average, had $282 million of tax savings, which explains why a large number of firms adopted the LIFO inventory method during the seventies.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-0-76231-118-7

Book part
Publication date: 12 November 2014

Matthew Lindsey and Robert Pavur

A Bayesian approach to demand forecasting to optimize spare parts inventory that requires periodic replenishment is examined relative to a non-Bayesian approach when the demand…

Abstract

A Bayesian approach to demand forecasting to optimize spare parts inventory that requires periodic replenishment is examined relative to a non-Bayesian approach when the demand rate is unknown. That is, optimal inventory levels are decided using these two approaches at consecutive time intervals. Simulations were conducted to compare the total inventory cost using a Bayesian approach and a non-Bayesian approach to a theoretical minimum cost over a variety of demand rate conditions including the challenging slow moving or intermittent type of spare parts. Although Bayesian approaches are often recommended, this study’s results reveal that under conditions of large variability across the demand rates of spare parts, the inventory cost using the Bayes model was not superior to that using the non-Bayesian approach. For spare parts with homogeneous demand rates, the inventory cost using the Bayes model for forecasting was generally lower than that of the non-Bayesian model. Practitioners may still opt to use the non-Bayesian model since a prior distribution for the demand does not need to be identified.

Details

Advances in Business and Management Forecasting
Type: Book
ISBN: 978-1-78441-209-8

Keywords

Book part
Publication date: 1 November 2007

Irina Farquhar and Alan Sorkin

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative…

Abstract

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.

Details

The Value of Innovation: Impact on Health, Life Quality, Safety, and Regulatory Research
Type: Book
ISBN: 978-1-84950-551-2

Book part
Publication date: 14 December 2023

William M. Baker

This chapter presents a new approach to teach process costing that uses worksheets to create the information necessary to account for costs. The approach employs a five-column…

Abstract

This chapter presents a new approach to teach process costing that uses worksheets to create the information necessary to account for costs. The approach employs a five-column, five-row worksheet that presents weighted-average and FIFO costs per equivalent unit simultaneously. Then, the goal of process costing, accounting for costs, is formally presented in a manner to emphasize its importance. As a result, students are better able to compare and contrast the two process-costing methods.

Details

Advances in Accounting Education: Teaching and Curriculum Innovations
Type: Book
ISBN: 978-1-83797-172-5

Keywords

1 – 10 of over 4000