Economies of Scale in Brazilian Supplementary Health

Low profitability has been responsible for the insolvency of a large number of health plan operators (HPO) in recent years, which increasingly requires these entities to assess which services can be optimized without compromising their final activities. An answer to this problem may lie in the adequate dimensioning of support activities. Therefore, the aim of this study is to investigate the economies of scale in the support activities of Brazilian HPO. In the presence of such economies, it can be considered that operators have room to dilute their administrative expenses, suggesting that profitability can be increased without the need for large price increases, which can guarantee the survival of companies in the sector without penalizing their customers. For this purpose, panel data regressions with Random Effects (RE), Fixed Effects (FE) and pooled were estimated, considering 5,185 observations for the period 2011 – 2018. The results found by estimating the total cost function were favorable to the hypothesis of economies of scale in the supplementary health sector. Finally, it was also possible to verify that the type of operator and the geographic location of the administrative headquarters of these entities contribute to the scale effect to a greater or lesser extent. These results show that the economies of scale existing in the sector can significantly contribute to the operational and financial maintenance of various HPO, providing an alternative to mitigate the low profitability of these companies.

The EOQ Model for Deteriorating Items with a Conditional Trade Credit Linked to Order Quantity in a Supply Chain System

For generality, we observed that some of the optimization methods lack the mathematical rigor and some of them are based on intuitive arguments which result in the solution procedures being questionable from logical viewpoints of a mathematical analysis such as those in the work by Ouyang et al. (2009). They consider an economic order quantity model for deteriorating items with partially permissible delays in payments linked to order quantity. Basically, their inventory models are interesting, however, they ignore explorations of interrelations of functional behaviors (continuity, monotonicity properties, differentiability, et cetera) of the total cost function to locate the optimal solution, so those shortcomings will naturally influence the implementation of their considered inventory model. Consequently, the main purpose of this paper is to provide accurate and reliable mathematical analytic solution procedures for different scenarios that overcome the shortcomings of Ouyang et al.

Photo Sequences of Varying Emotion: Optimization with a Valence-Arousal Annotated Dataset

Synthesizing photo products such as photo strips and slideshows using a database of images is a time-consuming and tedious process that requires significant manual work. To overcome this limitation, we developed a method that automatically synthesizes photo sequences based on several design parameters. Our method considers the valence and arousal ratings of images in conjunction with parameters related to both the visual consistency of the synthesized photo sequence and the progression of valence and arousal throughout the photo sequence. Our method encodes valence, arousal, and visual consistency parameters as cost terms into a total cost function while applying a Markov chain Monte Carlo optimization techniques called simulated annealing to synthesize the photo sequence based on user-defined target objectives in a few seconds. As our method was developed for the synthesis of photo sequences using the valence-arousal emotional model, a user study was conducted to evaluate the efficacy of the synthesized photo sequences in triggering valence-arousal ratings as expected. Our results indicate that the proposed method synthesizes photo sequences in which valence and arousal dimensions are perceived as expected by participants; however, valence may be more appropriately perceived than arousal.

An Inventory Ordering Model for Deteriorating Items with Compounding and Backordering

We consider the optimal order quantity problem for exponentially deteriorating items where the opportunity cost is based on compound interest and backorders are allowed. Our objectives in this research are to develop a model that accurately models deterioration, compound interest and backordering, and determine a near-optimal and intuitive closed-form solution for the proposed model. Deteriorating items include various chemicals, gasoline and petroleum products, fresh produce, bulk and liquid food products, batteries, and some electronic components. These items incur losses over time due to spoilage, evaporation, chemical decomposition, breakdown, or deterioration in general. Exponential deterioration is commonly used to model this phenomenon, which results in a negative exponential inventory level function, which is asymmetric in the sense that the rate of depletion is highest at the beginning of an ordering cycle, and lowest at the end. On the other hand, the rate of deterioration for individual items is the same at both ends of the cycle, which means it is symmetric. Compounding also leads to exponential terms in the opportunity cost function. Both of these factors result in a total cost function that does not have a closed-form optimal solution. We therefore approximate the total cost function using a Taylor series expansion approximation of the exponential function and derive a closed-form solution that is simple and logical, and very close to the exact optimum, which makes it attractive to the practitioners as a quick and accurate calculation. Our closed form solutions for both the basic and the planned backorders models are very close to the exact optimum, as shown by extensive numerical experiments.

Economics of Potato Production for Autumn Season 2015-2016 (Baghdad Governorate as A Practical Case)

"The research aimed at estimating the production function and the total cost function, as well as measuring the efficiency of resource use, technical, economic, price and cost efficiency. The study was based primarily on a simple random sample of (155) farmers in Baghdad governorate for the autumn season (2015-2016), The double logarithmic formula was the most suitable for the production function. The results of the resource efficiency criteria indicated that potato farmers were efficient in using resources (seed, phosphate fertilizer, human labor) and were inefficient in using irrigation and pesticides. While the cubic formula was more suitable for the total cost function according to the statistical, econometrical and economical tests, and from it we showed that the optimum size of production and size that maximize profit are (119.069, 143.398) ton consequently. Technical, economic and price efficiencies were estimated at (34.25933, 34.25937, 73.521)% consequently, while cost efficiency was estimated at (0.454), and the net farm income that achieved over all the sample less about (10380.741) thousand dinars than that achieved at optimal size. The research concluded that the quantity of seeds had the greatest impact on potato production and that there was waste in using the available resources, which led to actual production being less than optimum production. The research recommends that the related institutions should work to provide a good quality potato seeds to cover the needs of local farmers, from good sources in a timely manner and at the right price to increase the production and productivity of this important crop and reduce production costs. As well as the protection of the local producer by adopting price policies that grant best income of farmers. Corresponding author: E-mail(Faisal@gmail) Al- Muthanna University All rights reserved"

Sustainable optimal ordering quantity for non-instantaneous deteriorating items under joint replenishment with substitution and carbon emission

Purpose Carbon emission is a significant issue for the current business market and global warming. Nowadays, most countries have focused to reduce the environmental impact of business with durable financial benefits. The purpose of this study is to optimize the entire cost functions with carbon emission and to find the sustainable optimal ordering quantity for retailers. Design/methodology/approach This paper illustrates a sustainable inventory model having a set of two non-instantaneous substitutable deteriorating items under joint replenishment with carbon emission. In this model demand and deterioration rate are considered as deterministic, constant and triangular fuzzy numbers. The objective is to find the optimal ordering quantity for retailers and to minimize the total cost function per unit time with carbon emission. The model is then solved with the help of Maple software. Findings This paper presents a solution method and also develop an algorithm to determine the order quantities which optimize the total cost function. A numerical experiment illustrates the improvement in optimal total cost of the inventory model with substitution over without substitution. The graphical results show the convexity of the cost function. Finally, sensitivity analysis is given to get the impact of parameters and validity of the model. Originality/value This study considers a set of two non-instantaneous substitutable deteriorating items under joint replenishment with carbon emission. From the literature review, in the authors’ knowledge no researcher has undergone this kind of study.

Economic Ordering Policy for VAR Deterioration Model with Non-stationary Two-warehouse Inventory and Demand

This paper adopts the two-warehouse inventory, determination on the first run-time and VAR (Vector Auto Regression) deterioration model. The optimal EOQ in the interval of the finite horizon is determined under critical considerations. The non-stationary two-warehouse inventory, i.e. the inventory and initial inventory are non-stationary at level, but stationary after lag difference similar to demand (demand and initial demand). The output of the proposed model represented the optimal order quantity and optimal first run-time, the optimal total cost as integration of first order with the significant trend and intercept. The optimal demand is decreased during more risk as a deterioration variable to reduce the quantity in the stock. The initial demand is stationary after a first lag and the demand is stationary.Keywords: initial inventory; optimal of first run-time; EOQ (Economic Ordering Quantity); total cost function (TC). AbstrakPenelitian ini mengadopsi inventori dengan dua gudang penyimpanan, penentuan pada waktu run (run-time) awal, dan model deteriorating VAR (Vector Auto Regression). Nilai optimal EOQ dalam interval horizon berhingga ditentukan dengan pertimbangan kritis. Inventori dengan dua gedung yang tidak stasioner, yaitu inventori dan inventori awal tidak stasioner pada level, tetapi stasioner setelah perbedaan lag seperti halnya pada permintaan (permintaan dan permintaan awal). Hasil dari model yang diajukan menunjukkan nilai orde yang optimal dan waktu run awal yang optimal, total biaya optimal sebagai integrasi dari orde pertama dengan tren dan intercept yang signifikan. Permintaan optimal mengalami penurunan ketika lebih banyak risiko sebagai variabel deteroriating untuk mengurangi jumlah dalam stok. Permintaan awal menunjukkan stasioner setelah perbedaan lag pertama dan permintaan juga stasioner.Kata kunci: inventori awal; optimal run-time awal; EOQ (Economic Ordering Quantity); fungsi biaya total.

Inventory Control Model with Time-Linked Holding Cost, Salvage Value and Probabilistic Deterioration following Various Distributions

This paper proposes a study on inventory model for time linked holding cost and salvage value with probabilistic deterioration following various distributions. Shortage is assumed to be partially backlogged. Demand rate is time linked. Deterioration is a continuous random variable following some probabilistic distributions. We consider the uniform and triangular distributions. An expression for average total cost is derived as an Economic Order Quantity problem. Using the probabilistic distribution, the average total cost function is divided into two models - Model−I, and Model−II. To explain the solution procedure, two numerical examples are provided for both models. The convex property for the concerned average total cost functions is justified with the help of graphs in three dimensions. The optimal results are compared graphically for both the models

A heuristic algorithm for multiple trip vehicle routing problems with time window constraint and outside carrier selection

Purpose In this paper, the authors introduced a real world new problem, the multi-trip vehicle routing problem with time windows and the possible use of a less-than-truckload carrier to satisfy customer demands. The purpose of this paper is to develop a heuristic algorithm to route the private trucks with time windows and to make a selection between truckload and less-than-truckload carriers by minimizing a total cost function. Design/methodology/approach Both mathematical model and heuristic algorithm are developed for routing the private trucks with time windows and for selecting of less-than-truckload carriers by minimizing the total cost function. Findings In all, 40 test problems were examined with the heuristics. Computational results show that the algorithm obtains the optimal or near-optimal solutions efficiently in terms of time and accuracy. Originality/value The research described in this paper differs from the previous one on fleet planning or vehicle routing, in that it modifies the Clarke and Wright method by shifting the performance measure from a distance to cost and also incorporates the fixed cost of different types of trucks into the model. In addition, the authors simultaneously consider the multiple trip vehicle routing problems with time windows and the selection of less-than-truckload carriers that is an integrated scenario of real-world application. To the best of the authors’ knowledge, this scenario has not been considered in the literature.

Salvage value and three variable Weibull deteriorating rate for non-instantaneous deteriorating items

Existing study gives ordering policy for non-instantaneous deteriorating items having three-variable Weibull distribution deterioration rate. Demand rate varies in different time interval. Before deterioration starts, demand is constant and after that it decreases exponentially with respect to time. The study considers total cost function as objective function including salvage value. Shortages are not allowed to stay in time-based competition. Results are proved theoretically and numerically. Sensitivity analysis is performed with respect to salvage value, scale parameter, shape parameter and location parameter including in deterioration rate function to show the liability of the model.