Our goal in this paper is to explain the location of transactions (and contracts) in a larger system of production. We first characterize the system as a network of tasks and transfers. While transfers between agents are necessary and ubiquitous, the mundane transaction costos of standardizing,...

Conventional cost accounting assumes that the relation between cost and volume is symmetric for volume increases and decreases. We test an alternative model where costs increase more when activity rises than they decrease when activity falls by an equivalent amount. We find, for a sample of...

Our goal in this paper is to explain the location of transactions (and contracts) in a system of production. Systems of production are engineered systems, and where to place quot;transactionsquot; is one of the basic engineering problems that the designers of such systems face. We begin by...

Although it is generally agreed that companies are better off with shorter manufacturing lead times, investment in lead time reduction is often difficult to justify using traditional project valuation techniques such as net present value (NPV). In this article, we suggest that evaluating...

The basic financial purpose of an enterprise is maximization of its value. Inventory management should also contribute to realization of this fundamental aim. The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This article presents the consequences for...

Maximization of wealth of his owners is the basic financial aim in management of an enterprise. Decisions in net current assets investments should contribute to realization of this aim. Article presents the discussion about relations between firm's net current assets (working capital) investment...

This paper is a primer on corporate performance, corporate governance, and their interrelationships and measurement systems, with particular focus on Small- and Medium-Sized Enterprises (SMEs). This is the first report of a larger on going research project. In the domain of performance...

How does the stock market affect inventory decisions? The efficient markets view is that low stock price means poor fundamentals, a higher cost of capital, and lower inventory. Normatively, firms should obtain their cost of capital from an efficient markets model of stock prices. My study is...

While the need for, and the value of, Continuous Improvement (CI) Management in practice is well established; their successful implementation has proven problematic. Employee resistance, due to business cultural incompatibility, is considered a major cause. Unfortunately, current budgeting systems...

Business organizations are faced with the financial and physical task of managing interrelated flows of material and cash. Material needs capital, and on the other hand, when finished goods are sold, they contribute to cash reserves. In this paper, we present and study a dynamic model in which...