Fariborz Y. Partovi, Jonathan Burton and Avijit Banerjee
The use of Analytical Hierarchy Process (AHP) is an effective wayto deal with qualitative decision areas of operations management. Fourpublished applications of AHP are briefly…
Abstract
The use of Analytical Hierarchy Process (AHP) is an effective way to deal with qualitative decision areas of operations management. Four published applications of AHP are briefly reviewed in forecasting, supplier selection, facility location, and choice of technology. Furthermore, four more potential applications are suggested in other areas of operations management, including product design, plant layout, maintenance frequency selection, and choice of logistic carrier. In addition, suggestions for other areas of research are discussed.
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Avijit Banerjee and Seung‐Lae Kim
Derives an integrated inventory replenishment model for a buyerthat buys a single product from a vendor that manufactures this item anddelivers it to the former in fixed…
Abstract
Derives an integrated inventory replenishment model for a buyer that buys a single product from a vendor that manufactures this item and delivers it to the former in fixed quantities. It is assumed that both parties co‐operate and exchange information, including cost data, which is not unheard of in a JIT based partnering relationship, in deriving a jointly optimal inventory replenishment policy, rather than individually deriving their own independent policies. Such an approach can result in significant savings in the joint total relevant cost incurred by both parties. These savings may be shared in some fair and equitable manner, so that, from an economic standpoint, both the buyer and the vendor derive substantive benefits from such an integrated, jointly optimal policy. Illustrates the model and the related concepts through a simple numerical example.
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There have been limited studies which investigate the interlinkage between crime and economic affluence. The purpose of this paper is to investigate the linkage between crime and…
Abstract
Purpose
There have been limited studies which investigate the interlinkage between crime and economic affluence. The purpose of this paper is to investigate the linkage between crime and economic affluence in India.
Design/methodology/approach
The study is based on annual data spans over the time period 1982-2013. Standard econometric tools like unit root test, co-integration and two stage least square technique have been used to analyze data and to draw inferences.
Findings
The study finds that crime and economic affluence are interlinked in India. However, the nature of the linkage is not uniform over the time span. It is observed that economic affluence affects violent crime positively in the long run, but crime effects affluence negatively. In the short run, however, the relationship between crime and economic affluence is observed to be reversed.
Originality/value
This study is first of its nature to investigate the bi-directional linkage between crime and economic affluence in India. This study helps us to understand that controlling the crime rate is the urgent need of the hour to alleviate the pace of long run economic affluence in India.
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Satyajit Dhar and Avijit Bakshi
The purpose of this paper is to examine the factors that influence the variability of loan losses (termed as non-performing advances or NPA in India) of Indian banks in the public…
Abstract
Purpose
The purpose of this paper is to examine the factors that influence the variability of loan losses (termed as non-performing advances or NPA in India) of Indian banks in the public sector during the period of five years from 2001 to 2005.
Design/methodology/approach
The analysis is based on a panel approach, which considers both spatial and time dimensions of observations. Panel regression was used to explore the impact of different bank-specific factors on NPAs of 27 public sector banks (PSBs). Standard tests were used to find out suitability of different models of panel data analysis. Eight bank-specific factors were identified for analysis on the basis of review of extant literature.
Findings
Certain bank-specific factors, in particular, net interest margin and capital adequacy ratio exhibit negative and significant impact on gross non-performing advances (GNPA) ratio of Indian PSBs. The results also suggest that relative quantum of sensitive sector (SEN) (comprised of commercial real estate, commodity and capital market) advances has a positive relationship with NPA ratio, and such a relationship is statistically significant.
Research limitations/implications
The sample is restricted to India and may not be reflective of other countries. The study considers bank-level factors, and there are some macro factors (e.g. gross domestic product, interest rate and inflation rate) which could have explained the variability of GNPA ratio.
Practical implications
Provisioning against loan losses is a major issue for stability of the banking system. Identification of appropriate causes of variability of such loan losses is important for managing credit portfolio of a bank. A positive and significant relationship between SEN advances and NPA calls for a more cautionary approach toward lending to those sectors.
Originality/value
This paper is believed to be the first attempt to empirically examine the role of bank-specific factors. This study attempts to enrich empirical research in the field and provides an insight into the role of various bank-specific factors on loan losses in the context of Indian PSBs. The study provides contrary evidence regarding the role of priority sector advances on a GNPA ratio.