Note on the Stock-Wise Utility Function Used in Their Option-Value Analysis

2014 ◽  
Author(s):  
Axel Boersch-Supran
Keyword(s):  
Utility Function ◽  
Option Value ◽  
Value Analysis

Supply Chain Flexible Production Capacity Value Analysis -Based on the View of Real Options

2011 ◽  
Vol 135-136 ◽  
pp. 975-982
Author(s):  
Long Hua Yang ◽  
Dan Ning Zhang
Keyword(s):  
Supply Chain ◽  
Real Options ◽  
Information Flow ◽  
Production Capacity ◽  
Flexible Production ◽  
Option Value ◽  
Parameter Sensitivity Analysis ◽  
Value Analysis ◽  
Matlab Programming

The flagship firm in the supply chain integrates resources through SCM (Supply chain Management), optimizing the information flow，logistics and capital flow in the supply chain to obtain long-term competitive advantage and enable firm to enhance market response and competitive capacity. It has many abilities to get economy rent through implementation of SCM, flexible production capacity is one of those abilities. Based on the view of real options, this paper regarded this ability as a call option. Construct a model to analysis the value of flexible production capacity. Calculate the option value using Monte Carlo simulation，Matlab programming. Illustrate a numerical example and make a parameter sensitivity analysis.

scholarly journals Project Capital Allocation Combination Equilibrium Decision Model Based on Behavioral Option Game

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Meirui Zhong ◽  
Anqi Zeng ◽  
Jianbai Huang ◽  
Kairong Hong
Keyword(s):  
Decision Making ◽  
Utility Function ◽  
Decision Model ◽  
Trigger Point ◽  
Capital Allocation ◽  
Project Managers ◽  
Option Value ◽  
Allocation Decision ◽  
Game Equilibrium ◽  
Behavioral Option

Aiming at option value of the project and fairness preference psychological utility features, this paper modified objective function between players by option game equilibrium and utility function of project managers by inequity aversion. Therefore, under the symmetric and asymmetric information conditions, a project capital allocation combination equilibrium decision model has been built. It draws a conclusion that the option value of projects has changed the utility function of shareholders and managers in capital allocation, whereas fairness preferences of the project managers have changed the way of allocation through psychological utility. These two effects have influenced the trigger point of capital allocation decision-making. One is the decrease of trigger point owing to capital allocation decision-making of a CEO affected by the option value; the other is the reaction due to the crowding-out and crowding-in effect of the project manager’s fairness preference, which restrains the severity of underinvestment. Therefore, a good incentive plan should be a balance among insurance, incentive, and fairness, not only a balance between insurance and incentive.

The Use of Word Associations for Value Analysis

1968 ◽  
Author(s):  
Lorand B. Szalay ◽  
Jack E. Brent ◽  
Dale A. Lysne
Keyword(s):  
Word Associations ◽  
Value Analysis

Pengujian pada Aplikasi Penggajian Pegawai dengan menggunakan Metode Blackbox

2020 ◽  
Vol 5 (1) ◽  
pp. 61
Author(s):  
Vadlan Febrian ◽  
Muhamad Rizki Ramadhan ◽  
Muhammad Faisal ◽  
Aries Saifudin
Keyword(s):  
Data Entry ◽  
Black Box ◽  
Application Form ◽  
Value Analysis ◽  
Test Function ◽  
Testing Method ◽  
Black Box Testing ◽  
Sample Testing ◽  
Testing Techniques ◽  
Program Error

In this employee payroll application, if there is an error program there will be a loss for employees and the company. Losses for employees, if this application program error occurs then the salary reduction will experience delays due to the difficulty in the process of calculating employee salaries and employees will be late in receiving salaries. Losses for the company, if there is an error program in this application, the company will suffer losses if the employee wants a salary reduction quickly but the company cannot calculate quickly and accurately. In solving this problem, the authors use the black box testing method. Black box testing method is a test that sees the results of execution through test data and ensures the function of the software. Black box testing method has several testing techniques, namely Sample Testing, Boundary Value Analysis, Equivalence Partitions and others. From the testing techniques that have been mentioned, we use the Equivalence Partitions testing technique. Equivalence Partitions are tests that refer to data entry on the employee payroll application form, input will be tested and then put together based on the test function, both valid and invalid values. The expected results of this test are a payroll system for employees who are computerized, have standard rules in the process of developing the program so that it is easy to develop and maintain, and can minimize errors in processing salary calculations for employees.

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