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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.

This paper aims to address the important issue of world food pricing from a new perspective of demand, supply production and preferences.

This paper reviews the models of demand and supply and introduces the author's own modeling idea in this field of global food pricing and production.

There is no such thing as permanent food scarcity, and that food scarcity is as much an ethical problem as is artificially generated scarcity of the good things of life, the basic needs of life, on which life has a fair share. The paper goes on to explain a relational model of learning to understand complementarities between the basic needs, amongst which essentially is food as a globally provisioned social good. Also endemic in this transformation are the preferences that conscious consumers ought to have, the production that appropriate technology should bring about, and the supply as an elastic function of price in a basic‐needs regime of food production and pricing.

Further statistical data needed for estimation.

The paper explains such a relational model of ethically‐induced perspectives on food demand, supply, production and pricing. The paper then investigates how the same issues can be examined in the conventional large‐scale econometric models against the data that are available. The paper suggests revisions in such econometric models in the light of the ethically‐induced relational model for understanding the issues underlying food demand, production, supply and pricing.

Several philosophical questions in regard to the appropriateness of the conventional models that fall short of addressing such essential issues, and thus also fail to predict behavior and forecast future, are examined. Some policy, program and strategic implications of the study are pointed out in the analytical conclusion.

The paper goes on to explain a relational model of learning to understand complementarities between the basic needs, amongst which essentially is food as a globally provisioned social good. Also endemic in this transformation are the preferences that conscious consumers ought to have, the production that appropriate technology should bring about, and the supply as an elastic function of price in a basic‐needs regime of food production and pricing. The paper explains such a relational model of ethically‐induced perspectives on food demand, supply, production and pricing. The paper then investigates how the same issues can be examined in the conventional large‐scale econometric models against the data that are available.

The main purpose of this paper is to develop a traffic demand forecasting model specifically on international sectors from the USA. Also, in this paper, the authors formulate the service positioning matrix (SPM) that enables airlines to accurately position their services and improve their process efficiency.

In this paper, the authors explore international sectors and present a traffic demand model specifically for the same. The distribution of demand is assumed to follow a normal distribution and non‐service variables are introduced in the model. The behavior of the passenger has been captured by deriving the zonal income function. The variables have been drawn from microeconomic theory and the traditional gravity model of physics. The key innovations of the paper are fusion of the gravity model and microeconomic theory to develop the traffic demand model, and transformation of income to zonal income by deriving the aggregate zonal demand function; and development of a service positioning matrix for the airline industry.

In this paper, first, the authors have presented a conceptual model for demand forecasting through usage of zonal income. Second, in recognition of the value add the firm receives by identifying the nature of service and derived customer satisfaction levels, the authors have presented the SPM – a framework to help service providers to position themselves on any one of the four defined states. The empirical work is underway to solidify the conceptions and would provide a robust route demand forecasting model for international route contemplation for airlines operating from the USA and a service positioning matrix.

Although many airline companies and professional bodies are involved in developing forecasts of air transport demand, detailed analysis of the characteristics of demand for air transport over long‐haul or international routes are less researched. This paper attempts to provide a framework for the airlines to forecast demand specifically on international routes operated from major metros of the USA and position their services by designing the service positioning matrix. The model fuses concepts from physics and micro‐economics to enhance the forecasting capabilities. Major benefits include route contemplation, effective fleet scheduling, decisions on aircraft and fuel purchases, improving service efficiency and developing optimal fare policies.

This paper aims to study the impact of existence and lack of discount on the relationships between one manufacturer and one retailer under the cooperative and the non-cooperative games and the members’ profits are compared.

In the first approach, the manufacturer’s price function is constant, and in the second approach, this price function is a decreasing function with respect to lot size. These approaches are modeled through three games structure, including two Stackelberg games and one cooperative game.

Some numerical instances comprising sensitivity analysis are provided, and then the members’ profits in different scenarios are compared. This paper reveals that in the presented models, whether the members are inclined to change their profits.

This paper presents a tool of decision-making for the type of relationships of members in two different circumstances, and an approach is also presented to maximize the members’ profit.

In this paper, the relationships between one manufacturer and one retailer are studied under six different circumstances, where pricing, cooperative advertising and inventory cost are considered simultaneously. Also, a different model is presented to make a balance in individual profits and gain more profit for each member compared to the cooperative and non-cooperative game.

This paper analytically models and numerically investigates two operating levers, namely optimization of product price and optimization of product quality in the context of a manufacturer that sells the products directly in the marketplace. The study attempts to identify how optimizing product quality and product price can fulfill a manufacturer's economic aims such as maximization of the manufacturer's profit and market demand. Anchored to the extant literature, the demand is modeled as a parametric joint multiplicative function of price and quality. Further, price is modeled as a function of product quality.

First, the authors evolve the analytical expression for the manufacturer's profit. Thereafter, following the mathematical principles of unconstrained optimization, the authors arrive at the conditions for optimal product quality and product price. The authors further perform numerical experiments to understand the behavior of economic dimensions such as profit and demand with respect to sensitivities associated with cost, quality and price.

The authors find that under product quality optimization, the optimal product quality is a unique solution in that a highest possible theoretical manufacturer's profit is obtained. However, in the case of product price optimization, the optimal product price is non-unique and is a function of product quality. The authors further find that in the context of functional quality-level expectations, product quality optimization as an operating lever gives a better dividend. However, in the case of higher product quality expectations, product price optimization performs better than product quality optimization. Further, several novel findings are also obtained from numerical experimentations.

The findings of the authors' study have implications for types of industries characterized by relatively low as well as relatively high competitive intensity. Further, as opposed to several extant studies that have often carried out joint optimization of quality and price, the authors' study is one of the first to study the impact of product price and product quality on the manufacturer's economic objective in a disparate and focused manner, thus capturing individual effects.

The purpose of this paper is twofold. First, the author proposes a financial engineering framework to model commodity prices based on market demand processes and demand functions. This framework explains the relation between demand, volatility and the leverage effect of commodities. It is also shown how the proposed framework can be used to price derivatives on commodity prices. Second, the author estimates the model parameters for agricultural commodities and discuss the implications of the results on derivative prices. In particular, the author see how leverage effect (or inverse leverage effect) is related to market demand.

This paper uses a power demand function along with the Cox, Ingersoll and Ross mean-reverting process to find the price process of commodities. Then by using the Ito theorem the constant elastic volatility (CEV) model is derived for the market prices. The partial differential equation that the dynamics of derivative prices satisfy is found and, by the Feynman-Kac theorem, the market derivative prices are provided within a Monte-Carlo simulation framework. Finally, by using a maximum likelihood estimator, the parameters of the CEV model for the agricultural commodity prices are found.

The results of this paper show that derivative prices on commodities are heavily affected by the elasticity of volatility and, consequently, by market demand elasticity. The empirical results show that different groups of agricultural commodities have different values of demand and volatility elasticity.

The results of this paper can be used by practitioners to price derivatives on commodity prices and by insurance companies to better price insurance contracts. As in many countries agricultural insurances are subsidised by the government, the results of this paper are useful for setting more efficient policies.

Approaches that use the methodology of financial engineering to model agricultural prices and compute the derivative prices are rather new within the literature and still need to be developed for further applications.

Line balancing has been an important technique for manufacturing system design, because a completely balanced system can provide maximum resource utilization at the designed capacity. However, even if a system is completely balanced, it still has capacity waste when the entire product life cycle is considered, because real production is often significantly less than capacity. Avoiding this mismatch requires scalable systems such as reconfigurable manufacturing systems (RMSs) to meet changing product demand. Stage paralleling is suggested as an approach to scalability for RMSs. By comparing the economic feasibility of such manufacturing systems with completely balanced transfer line systems with respect to station cost, it is shown that line balancing is not necessarily desirable with this approach. The effect of station cost differences for unbalanced systems is also considered.