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1 – 10 of over 75000This study aims to shed light on defining precisely variables of logistics costs model in Indonesia’s cement projects and generally other projects scientifically. The variables…
Abstract
Purpose
This study aims to shed light on defining precisely variables of logistics costs model in Indonesia’s cement projects and generally other projects scientifically. The variables have previously so far been identified based on pragmatism and practical experience without rigorous scientific and empirical findings. The models are deeply awaited by every project practitioner, especially project controllers, in Indonesia.
Design/methodology/approach
Data for the period 2010–2018 of eight cement projects were taken in quarterly and tested with a statistical tool EVIEWS10 to develop a robust proposed model. Investigating models were done by literature studies and empirical studies, and the results had been examined by statistical tests to be determined as robust or not-robust models. The certain period taken due to the availability data of the cement projects in which after 2018 was unavailable because the cement product is overcapacity in Indonesia.
Findings
The model proposed is resulted by synthesizing logistics literature and empirical from the cement projects in which the model consists of foreign logistics costs, domestic manufacture, and domestic logistics costs as the best findings to develop logistics model for the cement projects with a-10 independent variable. It significantly found the variable of foreign logistics costs have taken higher portions in the model, and therefore must be prior carefully anticipated.
Practical implications
To guide investors to alert with several important variables of logistics in Indonesia. As education that to invest in Indonesia, the best logistics model must prior be known to anticipate further uncertainty.
Originality/value
This study is advanced applied research of logistics models developed by author for future possibility implementation in the sector beyond cement projects.
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Agnieszka Zalejska‐Jonsson, Hans Lind and Staffan Hintze
The purpose of this paper is to investigate the commercial aspect of “green” building construction and whether increased investment costs are profitable taking the reduction in…
Abstract
Purpose
The purpose of this paper is to investigate the commercial aspect of “green” building construction and whether increased investment costs are profitable taking the reduction in operating costs into account. The investment viability is approached by comparing investment in conventional and “green” residential building, particularly passive houses, using real construction and post‐occupancy conditions.
Design/methodology/approach
The key data were obtained by surveys and personal interviews. The first survey was directed to the companies which had experience of building low‐energy housing and the second survey to housing companies that actively manage operation of low‐energy houses.
Findings
Findings indicate that low‐energy buildings are considered an interesting and sound business opportunity, and investment analysis indicates that low‐energy houses (particularly passive houses) can be more attractive investments than conventional residential buildings. The long‐term strategy of building low‐energy buildings can give competitive advantages. The government initiative and the construction regulations are found to be necessary in eliminating the initial barrier to energy‐efficient projects and achieving long‐term environmental goals.
Originality/value
This paper provides insights into the investment decisions and contributes to the understanding of the construction, operation and profitability of energy‐efficient residential buildings.
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James A. Larson, Tun‐Hsiang Yu, Burton C. English, Daniel F. Mooney and Chenguang Wang
The US Department of Energy has a goal to make ethanol from biomass cost competitive with petroleum by 2012. Feedstock procurement is expected to represent a significant portion…
Abstract
Purpose
The US Department of Energy has a goal to make ethanol from biomass cost competitive with petroleum by 2012. Feedstock procurement is expected to represent a significant portion of the operating costs for a refinery that produces ethanol from biomass such as switchgrass. Thus, cost‐effective feedstock logistics will be a key factor for the future development of a capital intensive cellulosic ethanol industry. The purpose of this paper is to analyze the cost of various logistic methods of switchgrass production, harvesting, storing, and transportation.
Design/methodology/approach
This study applied enterprise budgeting and geographical information system (GIS) software to analyze the costs of three logistic methods of acquiring switchgrass feedstock for a 25 million gallon per year refinery. Procurement methods included traditional large round and rectangular bale harvest and storage systems and satellite preprocessing facilities using field‐chopped material. The analysis evaluated tradeoffs in operating costs, dry matter losses during storage, and investment requirements among the three systems.
Findings
Results suggest that the preprocessing system outperformed the conventional bale harvest methods in the delivered costs of switchgrass.
Practical implications
The cost savings in harvest, transportation, and dry matter losses for the preprocessing system offset their extensive capital costs and generated cost advantages over the conventional methods.
Social implications
The traditional round bale system has a higher overall investment cost, may not be the most cost‐effective way to procure switchgrass feedstock for a refinery, and may limit farmer participation in the feedstock value chain.
Originality/value
GIS methods combined with enterprise budgeting can be useful tools for evaluating investment in feedstock supply chain infrastructure.
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Ahmed Mohammed, Qian Wang and Xiaodong Li
The purpose of this paper is to investigate the economic feasibility of a three-echelon Halal Meat Supply Chain (HMSC) network that is monitored by a proposed radio frequency…
Abstract
Purpose
The purpose of this paper is to investigate the economic feasibility of a three-echelon Halal Meat Supply Chain (HMSC) network that is monitored by a proposed radio frequency identification (RFID)-based management system for enhancing the integrity traceability of Halal meat products and to maximize the average integrity number of Halal meat products, maximize the return of investment (ROI), maximize the capacity utilization of facilities and minimize the total investment cost of the proposed RFID-monitoring system. The location-allocation problem of facilities needs also to be resolved in conjunction with the quantity flow of Halal meat products from farms to abattoirs and from abattoirs to retailers.
Design/methodology/approach
First, a deterministic multi-objective mixed integer linear programming model was developed and used for optimizing the proposed RFID-based HMSC network toward a comprised solution based on four conflicting objectives as described above. Second, a stochastic programming model was developed and used for examining the impact on the number of Halal meat products by altering the value of integrity percentage. The ε-constraint approach and the modified weighted sum approach were proposed for acquisition of non-inferior solutions obtained from the developed models. Furthermore, the Max-Min approach was used for selecting the best solution among them.
Findings
The research outcome shows the applicability of the developed models using a real case study. Based on the computational results, a reasonable ROI can be achievable by implementing RFID into the HMSC network.
Research limitations/implications
This work addresses interesting avenues for further research on exploring the HMSC network design under different types of uncertainties and transportation means. Also, environmentalism has been becoming increasingly a significant global problem in the present century. Thus, the presented model could be extended to include the environmental aspects as an objective function.
Practical implications
The model can be utilized for food supply chain designers. Also, it could be applied to realistic problems in the field of supply chain management.
Originality/value
Although there were a few studies focusing on the configuration of a number of HMSC networks, this area is overlooked by researchers. The study shows the developed methodology can be a useful tool for designers to determine a cost-effective design of food supply chain networks.
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Konstantinos J. Liapis, Dimitrios D. Kantianis and Christos L. Galanos
The main purpose of this paper is the incorporation of life-cycle costs (LCC) and whole-life costing (WLC) method and the taxation environment into the investment appraisal…
Abstract
Purpose
The main purpose of this paper is the incorporation of life-cycle costs (LCC) and whole-life costing (WLC) method and the taxation environment into the investment appraisal procedure for commercial real property projects.
Design/methodology/approach
The paper initially presents the methodologies of LCC and WLC together with the NPV measure for the evaluation of real estate investments. These methods are incorporated into a decision-making model using mathematical approaches. The model is applied to a typical commercial property project (office building) in order to explore the significance of impacts from changes in structured variables and the taxation environment by introducing direct, indirect and property taxes in the evaluation of commercial real estate projects.
Findings
Testing of the methodology on the Greek economic environment revealed that time, cost, the tax regime, the financial variables of funding and the monetary and fiscal environment in a commercial real property project are the main variables of net present value (NPV) of the investment.
Practical implications
From the calibration of any impact from affected variables, decision-making aiding tools can be extracted for controlling the project throughout its entire life-cycle.
Originality/value
An integrated WLC mathematical model for the investment appraisal of commercial property projects is introduced. The herein proposed methodology contributes to taxation policy and real estate theory in general and assists industry professionals in effective commercial property management and decision-making.
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The purpose of this paper is to analyse how the regional effects of expansion can be managed under the constraints of voluntary cooperation. This paper studies international…
Abstract
Purpose
The purpose of this paper is to analyse how the regional effects of expansion can be managed under the constraints of voluntary cooperation. This paper studies international cooperation on electricity transmission expansions in a region of countries that shares a joint electricity infrastructure.
Design/methodology/approach
Cooperative game theory and the partition-function form were applied in combination with benefit–cost ratios to model and analyse the incentives to cooperate under different cost allocation rules. Empirical background was provided by a case study of a transmission investment agreement made on the Nordic electricity market.
Findings
Both cost sharing and the composition of expansion plans were identified as ways of reaching regional agreements. It was found that agreements based on proportional division of costs in relation to benefits were the best choice for voluntary cooperation.
Research limitations/implications
The study did not analyse the effects or relevance of surplus sharing in addition to that implied by cost sharing, nor has it studied the regulatory and legal requirements for implementing side-payments between countries in grid expansions. These issues could benefit from more study.
Practical implications
The results are relevant for the development of international cooperation on grid expansions and as an input to regulations and policies aimed at promoting regional perspectives, in particular for the case of a single internal energy market in Europe.
Originality/value
The paper contributes with an analysis of incentives for transmission expansions in a multinational environment subject to voluntary provision and a lack of supranational authorities with decision power.
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Varangkanar Jirarattanasopha, Nopphol Witvorapong and Piya Hanvoravongchai
The purpose of this paper is to evaluate the cost and benefit of a community-based alcohol consumption control program during the Buddhist Lent (BL) period in terms of social…
Abstract
Purpose
The purpose of this paper is to evaluate the cost and benefit of a community-based alcohol consumption control program during the Buddhist Lent (BL) period in terms of social return on investment (SROI).
Design/methodology/approach
The research team evaluated the program in four selected villages from four regions using standard SROI. Relevant stakeholders were involved in the evaluation design and program impact map construction. Data, including costs, were collected from literatures, official documents, stakeholder interviews and focus group discussions. Alcohol abstinence and related data during and after the 2015 BL period were gathered from a survey questionnaire. The SROI ratio presented the social benefits compared against the total social investment.
Findings
The program was effective in producing a greater social value (2.7–5.9 times) than the cost of investment in every village. Cost savings from alcohol consumption constituted a major proportion of the program’s value.
Originality/value
The community-based alcohol consumption control program during BL can provide value for investment. Information from this study can be used by policy makers in their decision to continue or scale up the program. The SROI approach mainly relies on stakeholders that may present a bias; however, further study such as social cost-benefit analysis could provide additional insights.
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Defines life cycle costing, which gives rise to Life Cycle Cost(LCC). Defines LCC as “The total cost of the system or productunder study over its complete life cycle or the…
Abstract
Defines life cycle costing, which gives rise to Life Cycle Cost (LCC). Defines LCC as “The total cost of the system or product under study over its complete life cycle or the duration of the period of study, whichever is the shorter”. Stresses that LCC can be used at whatever level is chosen (estate or, say, a boiler). Explains the timing and mechanism of measurement. Argues that the application of LCC at an early design stage will greatly enhance system design and operation. Offers other pertinent definitions.
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Adam Liberacki, Bartosz Dziugiel, Paulina Woroniecka, Piotr Ginter, Anna Dorota Stanczyk, Anna Maria Mazur, Jens T. Ten Thije and Marta Tojal Castro
The purpose of the paper is the identification of the main factors affecting the cost of urban air mobility (UAM) based on results of ASSURED-UAM project. These factors can be…
Abstract
Purpose
The purpose of the paper is the identification of the main factors affecting the cost of urban air mobility (UAM) based on results of ASSURED-UAM project. These factors can be found among such cost areas as investments (infrastructure, aircraft), operational, energy, end of life, delay and environmental. Once determined, they can be of great value for all UAM stakeholders, including manufacturers, urban planners and air service providers.
Design/methodology/approach
The obtained results were based on the outcomes of ASSURED-UAM project. Having the information about the magnitude of each cost category, we were able to identify the most costly factors of UAM. As a result, it was possible to suggest feasible cost reduction means.
Findings
For each cost category, there is the possibility to lower its value among the total cost of UAM. Each cost category has its own cost reduction means. It is vital however that the obtained results depend strongly on the assumptions made at the beginning of cost calculations.
Originality/value
The value of this paper is the identification of key UAM costs reduction means which may be found beneficial for all UAM stakeholders involved in the development of UAM infrastructure and services.
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Emmanouil Sfakianakis and Mindel van de Laar
PPPs can impose important future public costs, while PPP government guarantees create explicit contingent liabilities similar to public debt obligations. The risk that arises from…
Abstract
Purpose
PPPs can impose important future public costs, while PPP government guarantees create explicit contingent liabilities similar to public debt obligations. The risk that arises from such partnerships must be transparently valued to assess a country's fiscal profile. The purpose of this study is to show that the notion of a PPP as a (set of) contingent claim(s) can also be used to value the PPP public risk.
Design/methodology/approach
Taking a finance perspective, the paper refers to more traditional cases of asset valuation, applies them to a PPP and compares more carefully different set-ups of a PPP. The paper introduces and analyzes the different scenarios that were at the government's disposal for executing a transport infrastructure project.
Findings
The findings reveal that, for the first years, the burden on the surplus or deficit will be less in the case of the PPP compares to typical public investment. Secondly, the net contingent PPP flows constitute the real effect on the deficit and correspondingly on the public debt and weaken the government's fiscal position. Finally, the paper attributes a specific price to the PPP public risk introducing CDS valuation with and without counterparty (government) default.
Originality/value
This study, by proposing a method to evaluate PPP risk, complements previous literature on PPPs, which touches upon issues mainly related to the description of PPP types, the effect of contingent commitments and the accounting classification of PPP assets.
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