The aim of this paper is to illustrate the determination of the Economic Order Quantity (EOQ) or Economic Number of Orders (ENO) when the Total Ordering Cost (TOC) and Total Handling Cost (THC) are not equally the same. For this purpose, two assumptions of the basic EOQ model - (a) the constant...

Problem/Relevance - This paper presents new description of the business cycles that for decades remain as relevant and important economic problem. Research Objective/Questions - We propose that econometrics can provide sufficient data for assessments of risk ratings for almost all economic...

Stochastic independence (SI) has a complex status in probability theory. It is not part of the definition of a probability measure, but it is nonetheless an essential property for the mathematical development of this theory, hence a property that any theory on the foundations of probability...

We propose a unified framework for equity and credit risk modeling, where the default time is a doubly stochastic random time with intensity driven by an underlying affine factor process. This approach allows for flexible interactions between the defaultable stock price, its stochastic...

The integrated circuit (IC) packaging and testing industry is an important link in the semiconductor industrial chain that may decide the success or failure of the foundry industry. The purpose of this study was to compare the competitiveness of the packaging and testing industry in the rear...

In the present paper, I derive the law of motion for the aggregate distribution directly from the laws of motion for the individuals' states. By relying on concepts from measure theory, the derivation is concise and intuitive. I address random shocks both at the micro level and at the macro...

In stock management, Economic Order Quantity (EOQ) is an important inventory management system that demonstrates the quantity of an item to reduce the total cost of both handling of inventory (Handling Cost) and order processing (Ordering Cost). The purpose of determining the EOQ is to minimise...

An aim of considerations is to show that the linear algebra lectured at all technical universities and in the majority of economic schools, offers very adequate tools for presentation of the most important notions in the field of financial engineering. It provides the opportunity to clearly...

During the first decades following Black and Scholes, the quantitative finance have been focus mainly on the modeling of the volatility. Indeed, the expansion of derivatives product brought some liquidity regarding this parameter. The implied volatility is the reflect of market convention for...

Floating rate bonds are coupon-paying instruments generally indexed to interest parameters. At the trading date, the payment dates and indexation rules are known, while the value of future coupons is uncertain. In this perspective, floating rate bonds are generally seen as a portfolio of zero...