Implementing VMI service pricing strategy for 3PL corporation considering recovery costs

The collector managed inventory(CMI)management idea is introduced based on the comparison of manufacturer and third-party logistics(3PL)implementing vendor managed inventory(VMI)services.Considering recovery costs,the service pricing strategies for 3PL corporations implementing VMI are studied to meet two conditions of participation constraints and incentive-compatibility constraints.The numerical simulation results indicate that the supply chain partners' profits change after considering recovery costs,and the 3PL corporation's profits and the total profits increase first,and then decrease.The retailers' and manufacturers' profits also increase.The total profits of the supply chain have a characteristic of increasing first and then decreasing with the increase of the callback ratio of unsold products.The concrete extremum point is codetermined by price flexibility,service pricing of the 3PL corporation,callback price and callback ratio.

Macroeconomic Instabilities and Cost-Recovery Potentials of Public Sector Organisations

The 2008 financial crisis raised concerns over the performance of public sector organisations operating under different cost recovery regimes.These concerns were linked to potential failure in attaining cost recovery targets as a result of declining revenues during economic downturn.This study utilised the Linear Mixed Effect(LME)models to analyse the data from the World Bank Indicator website and from six national Land Administration Organisations(LAOs),two of which being under“No cost recovery”(NCR)and the remaining being in“Full Cost Recovery”(FCR).Cost recovery indicators were computed from financial statement of national LAOs of these countries.The findings establish that a global financial crisis that is associated with declining GDP and a higher inflation rate can insignificantly reduce the level of cost recovery for LAOs while persistent decline in GDP growth rate significantly eliminates potentials for cost recovery.However prospects for recovery can be traced within the cost-revenue microstructures of LAOs themselves.With a significantly negative relationship between spending in information and technology as a ratio of GDP to the degree of cost recovery,LAOs need only to eliminate rigidities in their cost-revenue structure which tie them to macro-instabilities of the real estate market.Such flexibility can be attained through elastic cross-substitution in the LAO’s gross cost-revenues schedules for registration tasks in favour of information delivery tasks.

Environmental and economic vision of plasma treatment of waste in Makkah

An environmental and economic assessment of the development of a plasma-chemical reactor equipped with plasma torches for the environmentally friendly treatment of waste streams by plasma is outlined with a view to the chemical and energetic valorization of the sustainability in the Kingdom of Saudi Arabia（KSA）. This is especially applicable in the pilgrimage season in the city of Makkah, which is a major challenge since the amount of waste was estimated at about 750 thousand tons through Arabic Year 1435 H（2015）, and is growing at a rate of 3%–5% annually. According to statistics, the value of waste in Saudi Arabia ranges between 8 and 9 billion EUR. The Plasma-Treatment Project（PTP） encompasses the direct plasma treatment of all types of waste（from source and landfill）, as well as an environmental vision and economic evaluation of the use of the gas produced for fuel and electricity production in KSA, especially in the pilgrimage season in the holy city Makkah. The electrical power required for the plasmatreatment process is estimated at 5000 kW（2000 kW used for the operation of the system and 3000 kW sold）, taking into account the fact that：（1） the processing capacity of solid waste is 100 tons per day（2） and the sale of electricity amounts to 23.8 MW at 0.18 EUR per kWh.（3） The profit from the sale of electricity per year is estimated at 3.27 million EUR and the estimated profit of solid-waste treatment amounts to 6 million EUR per year and（4） the gross profit per ton of solid waste totals 8 million EUR per year. The present article introduces the first stage of the PTP, in Makkah in the pilgrimage season, which consists of five stages：（1） study and treatment of waste streams,（2） slaughterhouse waste treatment,（3） treatment of refuse-derived fuel,（4）treatment of car tires and（5） treatment of slag（the fifth stage associated with each stage from the four previous stages）.

Why Marginal Pricing?

Under perfect competition,marginal pricing results in short-term efficiency and the subsequent right short-term price signals.However,the main reason for the adoption of marginal pricing is not the above,but investment cost recovery.That is,the fact that the profits obtained by infra-marginal technologies(technologies whose production cost is below the marginal price)allow them just to recover their investment costs.On the other hand,if the perfect competition assumption is removed,investment over-recovery or under-recovery generally occurs for infra-marginal technologies.

Soft-capacitated Facility Location Game

We study the soft-capacitated facility location game which is an extension of the facility location game of Pa1 and Tardos. We propose a 6-approximate cross-monotonic cost-sharing method. Numerical tests indicate that the method is effective.