Search results for: Costs and benefits

Authors: Patrick T. I. Lam, Wenjing Yang

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A smart city project embraces benefits and costs which can be classified under direct and indirect categories. Externalities come into the picture, but they are often difficult to quantify. Despite this barrier, policy makers need to carry out cost-benefit analysis to justify the huge investments needed to make a city smart. The recent trend is towards the engagement of the private sector to utilize their resources and expertise, especially in the Information and Communication Technology (ICT) areas, where innovations blossom. This study focuses on the identification of costs (on a life cycle basis) and benefits associated with smart city project developments based on a comprehensive literature review and case studies, where public-private partnerships would warrant consideration, the related costs and benefits are highlighted. The findings will be useful for policy makers of cities.

Keywords: Costs and benefits, identification, public-private partnerships, smart city projects.

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Authors: Tomáš Brabenec

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Cost contribution arrangements (CCAs) and Cost sharing agreements (CCAs) belong to the tools of modern finance management. Costs spend by associated enterprises on developing producing or obtaining assets, services or rights (in general - benefits) are used for tax optimizing too. The main purpose of joint research and development, producing or obtaining benefits is to lower these costs as much as possible or to maximize the benefits. In this article is mentioned the problematic of transfer pricing and arm's length principle with connection of CCAs, CSAs. Next, there is mentioned how to settle participation shares of the total cost and benefits contributions with respect to the OECD Transfer pricing for MNEs Guidelines and with respect to other significant regulations.

Keywords: Arm's length principle, Cost contribution arrangements, Cost sharing agreements, Reasonable anticipated benefits, Relevant costs, Transfer prices.

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Authors: Faraj El Dabee, Romeo Marian, Yousef Amer

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Just-In-Time (JIT) is a lean manufacturing tool, which provides the benefits of efficiency, and of minimizing unnecessary costs for many organisations. However, the risks arising from these benefits have been disregarded. These risks impact on system processes disrupting the whole supply chain. This paper proposes an inventory model that can simultaneously reduce costs and risks in JIT systems. This model is developed to ascertain an optimal ordering strategy for procuring raw materials by using regular multi-external and local backup suppliers to reduce the total cost of the products, and at the same time to reduce the risks arising from this cost reduction within production systems. Some results that will be illustrated in the second part of this paper are presented.

Keywords: Lean manufacturing, Just-in-Time (JIT), production system, cost-risk reduction, inventory model, eternal supplier, local backup supplier.

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Authors: Iman Atighi, Jalal Soleimannejad, Reza Pourjafarabadi, Saeid Moradpour

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In the past, we could increase profit by increasing product prices. But in the new decade, a competitive market does not let us to increase profit with increased prices. Therefore, the only way to increase profit will be to reduce costs. A significant percentage of production costs are the maintenance costs, and analysis of these costs could achieve more profit. Most maintenance strategies such as RCM (Reliability-Center-Maintenance), TPM (Total Productivity Maintenance), PM (Preventive Maintenance) and etc., are trying to reduce maintenance costs. In this paper, decreasing the maintenance costs of Concentration Plant of Golgohar Iron Ore Mining & Industrial Company (GeG) was examined by using of MTBF (Mean Time Between Failures) and MTTR (Mean Time To Repair) analyses. These analyses showed that instead of buying new machines and increasing costs in order to promote capacity, the improving of MTBF and MTTR indexes would solve capacity problems in the best way and decrease costs.

Keywords: GeG Company, maintainability, maintenance costs, reliability-center-maintenance.

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Authors: Iman Atighi, Jalal Soleimannejad, Ahmad Akbarinasab, Saeid Moradpour

Abstract:

In the past, we could increase profit by increasing product prices. But in the new decade, a competitive market does not let us to increase profit with increase prices. Therefore, the only way to increase profit will be reduce costs. A significant percentage of production costs are the maintenance costs, and analysis of these costs could achieve more profit. Most maintenance strategies such as RCM (Reliability-Center-Maintenance), TPM (Total Productivity Maintenance), PM (Preventive Maintenance) etc., are trying to reduce maintenance costs. In this paper, decreasing the maintenance costs of Concentration Plant of Golgohar Company (GEG) was examined by using of MTBF (Mean Time between Failures) and MTTR (Mean Time to Repair) analyses. These analyses showed that instead of buying new machines and increasing costs in order to promote capacity, the improving of MTBF and MTTR indexes would solve capacity problems in the best way and decrease costs.

Keywords: Golgohar Iron Ore Mining & Industrial Company, maintainability, maintenance costs, reliability-center-maintenance.

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Authors: H. Starzyczna, M. Stoklasa, K. Matusinska

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This article deals with the benefits of regional brands for companies in the Czech Republic. Research was focused on finding out the expected and actual benefits of regional brands for companies. The data were obtained by questionnaire survey and analysed by IBM SPSS. Representative sample of 204 companies was created. The research analysis disclosed the expected benefits that the regional brand should bring to companies. But the actual benefits are much worse. The statistical testing of hypotheses revealed that the benefits depend on the region of origin, which surprised both us and the regional coordinators.

Keywords: Brand, regional brands, product protective branding programs, brand benefits.

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Authors: Mabel A. Leva

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This study defines a methodology to compute unitary costs for freight transportation modes. The main objective was to gather relevant costs data to support the formulation and evaluation of railway, road, pipelines and port projects. This article will concentrate on the following steps: Compilation and analysis of relevant modal cost studies, Methodological adjustments to make cost figures comparable between studies, Definition of typology and scope of transportation modes, Analysis and validation of cost values for relevant freight transportation modes in Chile. In order to define the comparison methodology for the costs between the different transportation modes, it was necessary to consider that the relevant cost depends on who performs the comparison. Thus, for the transportation user (e.g. exporter) the pertinent costs are the mode tariffs, whereas from the operators perspective (e.g. rail manager), the pertinent costs are the operating costs of each mode.

Keywords: Intermodal costs, Logistics, Transportation costs.

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Authors: T. Chaiechi, N. Stoeckl

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Scarcity of resources for biodiversity conservation gives rise to the need of strategic investment with priorities given to the cost of conservation. While the literature provides abundant methodological options for biodiversity conservation; estimating true cost of conservation remains abstract and simplistic, without recognising dynamic nature of the cost. Some recent works demonstrate the prominence of economic theory to inform biodiversity decisions, particularly on the costs and benefits of biodiversity however, the integration of the concept of true cost into biodiversity actions and planning are very slow to come by, and specially on a farm level. Conservation planning studies often use area as a proxy for costs neglecting different land values as well as protected areas. These literature consider only heterogeneous benefits while land costs are considered homogenous. Analysis with the assumption of cost homogeneity results in biased estimation; since not only it doesn’t address the true total cost of biodiversity actions and plans, but also it fails to screen out lands that are more (or less) expensive and/or difficult (or more suitable) for biodiversity conservation purposes, hindering validity and comparability of the results. Economies of scope” is one of the other most neglected aspects in conservation literature. The concept of economies of scope introduces the existence of cost complementarities within a multiple output production system and it suggests a lower cost during the concurrent production of multiple outputs by a given farm. If there are, indeed, economies of scope then simplistic representation of costs will tend to overestimate the true cost of conservation leading to suboptimal outcomes. The aim of this paper, therefore, is to provide first road review of the various theoretical ways in which economies of scope are likely to occur of how they might occur in conservation. Consequently, the paper addresses gaps that have to be filled in future analysis.

Keywords: Cost, biodiversity conservation, Multi-output production systems, Empirical techniques.

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Authors: Subramaniam Chandran

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This paper explores the features of political economy in the dynamics of representative politics in India. Politics is seen as enhancing economic benefits through acquiring and maintenance of power in the realm of democratic set up. The system of representation is riddled with competitive populism. Emerging leaders and parties are forced to accommodate their ideologies in coping with competitive politics. Electoral politics and voting behaviour reflect series of influences mooted by the politicians. Voters are accustomed to expect benefits outs of state exchequer. The electoral competitors show a changing phase of investment and return policy. Every elector has to spend and realize his costs in his tenure. In the case of defeated electors, even the cost recovery is not possible directly; there are indirect means to recover their costs. The series of case studies show the method of party funding, campaign financing, electoral expenditure, and cost recovery. Regulations could not restrict the level of spending. Several cases of disproportionate accumulation of wealth by the politicians reveal that money played a major part in electoral process. The political economy of representative politics hitherto ignores how a politician spends and recovers his cost and multiples his wealth. To be sure, the acquiring and maintenance of power is to enhance the wealth of the electors.

Keywords: Political economy, representative politics, costrecovery, electoral politics

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Authors: Fatemeh Afsharnia, Mohammad Amin Asoodar, Abbas Abdeshahi

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In economical evaluation literature, although the combination of some variables such as repair and maintenance costs and accumulated use hours has been widely considered in determining of optimum life for tractor, no investigation has indicated the influence of failure rate on repair and maintenance costs. In this study, the owners of three hundred tractors, which include Massey Ferguson, John Deere and Universal, were interviewed, from five regions of Khouzestan Province. A regression model was used to predict the tractors annual repair and maintenance costs based on failure rate. Results showed that the maximum percentage of annual repair and maintenance costs occurred in engine parts for MF285, JD3140 and U650 tractors while these costs for tire, ring, ball bearing and operator seat were higher compared to other MF399 tractor systems. According to the results of the regression, the failure rate increase would lead to annual repair and maintenance costs increase for all tractors. But, of all the tractors, repair and maintenance costs of JD3140 tractors extremely affected by the failure rate increase.

Keywords: Failure rate, tractor, annual repair and maintenance costs, regression model, Khouzestan.

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Authors: Roman Asatryan

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The decision-making processes in Corporate Social Responsibility (CSR) among firms in the airlines industry borders on the benefits that accrue to firms through those investments. The crux of the matter is how firms can quantify the benefits derived from such investments. This paper analyses the cost benefit adjustment strategies for firms in the airline industry in their CSR strategy adoption and implementation. The paper discusses the CBA model in order to understand the ways airlines can reduce costs and increase returns on CSR, or balance the cost and benefits. The analysis indicates that, economic concepts especially the CBA are useful, though they are not without challenges. This paper concludes that the CBA model gives a basic understanding of the motivations for investing in intangible assets like CSR. It sets the tone for formulating relevant hypothesis in empirical studies in investment in CSR and other intangible assets in business operations.

Keywords: Cost Benefit Analysis, Corporate Social Responsibility, airline industry.

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Authors: A. Charlangsut, M. Boonthienthong, N. Rugthaicharoencheep

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This paper proposes a mathematical model for transmission expansion employing optimization method with scenario analysis approach. Economic transmission planning, on the other hand, seeks investment opportunities so that network expansions can generate more economic benefits than the costs. This approach can be used as a decision model for building new transmission lines added to the existing transmission system minimizing costs of the entire system subject to various system’s constraints and consider of loss value of transmission system and N-1 checking. The results show that the proposed model is efficient to be applied for the larger scale of power system topology.

Keywords: Transmission Expansion Planning, Economic Dispatch, Scenario Analysis, Contingency.

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Authors: Nahid Hassanshahi, Ayoub Karimi-Jashni, Nasser Talebbeydokhti

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Due to the economic and environmental benefits of producing less waste, the US Environmental Protection Agency (EPA) introduces source reduction as one of the most important means to deal with the problems caused by increased landfills and pollution. Waste reduction involves all waste management methods, including source reduction, recycling, and composting, which reduce waste flow to landfills or other disposal facilities. Source reduction of waste can be studied from two perspectives: avoiding waste production, or reducing per capita waste production, and waste deviation that indicates the reduction of waste transfer to landfills. The present paper has investigated home composting as a managerial solution for reduction of waste transfer to landfills. Home composting has many benefits. The use of household waste for the production of compost will result in a much smaller amount of waste being sent to landfills, which in turn will reduce the costs of waste collection, transportation and burial. Reducing the volume of waste for disposal and using them for the production of compost and plant fertilizer might help to recycle the material in a shorter time and to use them effectively in order to preserve the environment and reduce contamination. Producing compost in a home-based manner requires very small piece of land for preparation and recycling compared with other methods. The final product of home-made compost is valuable and helps to grow crops and garden plants. It is also used for modifying the soil structure and maintaining its moisture. The food that is transferred to landfills will spoil and produce leachate after a while. It will also release methane and greenhouse gases. But, composting these materials at home is the best way to manage degradable materials, use them efficiently and reduce environmental pollution. Studies have shown that the benefits of the sale of produced compost and the reduced costs of collecting, transporting, and burying waste can well be responsive to the costs of purchasing home compost machine and the cost of related trainings. Moreover, the process of producing home compost may be profitable within 4 to 5 years and as a result, it will have a major role in reducing waste management.

Keywords: Compost, home compost, reducing waste, waste management.

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Authors: Anna Dolinayova, Juraj Camaj, Martin Loch

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Presently, it is necessary to ensure the sustainable development of passenger and freight transport. Increasing performance of road freight has had a negative impact to environment and society. It is therefore necessary to increase the competitiveness of intermodal transport, which is more environmentally friendly. The study describes the effectiveness of logistical centers realization for companies and society and research how the partial internalization of external costs reflected in the efficient use of these centers and increase the competitiveness of intermodal transport to road freight. In our research, we use the method of comparative analysis and market research to describe the advantages of logistic centers for their users as well as for society as a whole. Method normal costing is used for calculation infrastructure and total costs, method of conversion costing for determine the external costs. We modelled total society costs for road freight transport and inter modal transport chain (we assumed that most of the traffic is carried by rail) with different loading schemes for condition in the Slovak Republic. Our research has shown that higher utilization of inter modal transport chain do good not only for society, but for companies providing freight services too. Increase in use of inter modal transport chain can bring many benefits to society that do not bring direct immediate financial return. They often bring the multiplier effects, such as greater use of environmentally friendly transport mode and reduce the total society costs.

Keywords: Delivery time, economy effectiveness, logistical centers, ecological efficiency, optimization, society.

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Authors: Chanchai Supaartagorn

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E-retailing is the sale of goods online that takes place over the Internet. The Internet has shrunk the entire World. World eretailing is growing at an exponential rate in the Americas, Europe and Asia. However, e-retailing costs require expensive investment, such as hardware, software, and security systems. Cloud computing technology is internet-based computing for the management and delivery of applications and services. Cloud-based e-retailing application models allow enterprises to lower their costs with their effective implementation of e-retailing activities. In this paper, we describe the concept of cloud computing and present the architecture of cloud computing, combining the features of e-retailing. In addition, we propose a strategy for implementing cloud computing with e-retailing. Finally, we explain the benefits from the architecture.

Keywords: Architecture, cloud computing, e-retailing, internet-based.

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Authors: B. Marasović, S. Pivac, S. V. Vukasović

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Constructing a portfolio of investments is one of the most significant financial decisions facing individuals and institutions. In accordance with the modern portfolio theory maximization of return at minimal risk should be the investment goal of any successful investor. In addition, the costs incurred when setting up a new portfolio or rebalancing an existing portfolio must be included in any realistic analysis. In this paper rebalancing an investment portfolio in the presence of transaction costs on the Croatian capital market is analyzed. The model applied in the paper is an extension of the standard portfolio mean-variance optimization model in which transaction costs are incurred to rebalance an investment portfolio. This model allows different costs for different securities, and different costs for buying and selling. In order to find efficient portfolio, using this model, first, the solution of quadratic programming problem of similar size to the Markowitz model, and then the solution of a linear programming problem have to be found. Furthermore, in the paper the impact of transaction costs on the efficient frontier is investigated. Moreover, it is shown that global minimum variance portfolio on the efficient frontier always has the same level of the risk regardless of the amount of transaction costs. Although efficient frontier position depends of both transaction costs amount and initial portfolio it can be concluded that extreme right portfolio on the efficient frontier always contains only one stock with the highest expected return and the highest risk.

Keywords: Croatian capital market, Fractional quadratic programming, Markowitz model, Portfolio optimization, Transaction costs.

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Authors: Frantisek Bozek, Pavel Budinsky, Ignac Hoza, Alexandr Bozek, Magdalena Naplavova

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A cleaner production project was implemented in a bakery. The project is based on the substitution of the best available technique for an obsolete leaven production technology. The new technology enables production of durable, high-quality leavens. Moreover, 25% of flour as the original raw material can be replaced by pastry from the previous day production which has not been sold. That pastry was previously disposed in a waste incineration plant. Besides the environmental benefits resulting from less waste, lower consumption of energy, reduction of sewage waters quantity and floury dustiness there are also significant economic benefits. Payback period of investment was calculated with help of static method of financial analysis about 2.6 years, using dynamic method 3.5 years and an internal rate of return more than 29%. The supposed annual average profit after taxationin the second year of operation was incompliance with the real profit.

Keywords: Bakery, best available technology, cleaner production, costs, economic benefit, efficiency, energy, environmental benefit, investment, savings.

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Authors: Hussam Al-Shorman, Yosef Hasan Jbara

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A business case is a proposal for an investment initiative to satisfy business and functional requirements. The business case provides the foundation for tactical decision making and technology risk management. It helps to clarify how the organization will use its resources in the best way by providing justification for investment of resources. This paper describes how simulation was used for business case benefits and return on investment for the procurement of 8 production machines. With investment costs of about 4.7 million dollars and annual operating costs of about 1.3 million, we needed to determine if the machines would provide enough cost savings and cost avoidance. We constructed a model of the existing factory environment consisting of 8 machines and subsequently, we conducted average day simulations with light and heavy volumes to facilitate planning decisions required to be documented and substantiated in the business case.

Keywords: Investment cost, business case, return on investment, simulation.

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Authors: Faraj Farhat El Dabee, Rajab Abdullah Hokoma

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Supply Chain Management (SCM) is the integration between manufacturer, transporter and customer in order to form one seamless chain that allows smooth flow of raw materials, information and products throughout the entire network that help in minimizing all related efforts and costs. The main objective of this paper is to develop a model that can accept a specified number of spare-parts within the supply chain, simulating its inventory operations throughout all stages in order to minimize the inventory holding costs, base-stock, safety-stock, and to find the optimum quantity of inventory levels, thereby suggesting a way forward to adapt some factors of Just-In-Time to minimizing the inventory costs throughout the entire supply chain. The model has been developed using Micro- Soft Excel & Visual Basic in order to study inventory allocations in any network of the supply chain. The application and reproducibility of this model were tested by comparing the actual system that was implemented in the case study with the results of the developed model. The findings showed that the total inventory costs of the developed model are about 50% less than the actual costs of the inventory items within the case study.

Keywords: Holding Costs, Inventory, JIT, Modeling, SCM

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Authors: Christian Böning, Henrik Prinzhorn, Eric C. Hund, Malte Stonis

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In this article, the flexible job-shop scheduling problem is extended by consideration of energy costs which arise owing to the power peak, and further decision variables such as work in process and throughput time are incorporated into the objective function. This enables a production plan to be simultaneously optimized in respect of the real arising energy and logistics costs. The energy-costs-aware flexible job-shop scheduling problem (EFJSP) which arises is described mathematically, and a memetic algorithm (MA) is presented as a solution. In the MA, the evolutionary process is supplemented with a local search. Furthermore, repair procedures are used in order to rectify any infeasible solutions that have arisen in the evolutionary process. The potential for lowering the real arising costs of a production plan through consideration of energy consumption levels is highlighted.

Keywords: Energy costs, flexible job-shop scheduling, memetic algorithm, power peak.

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Authors: Hanadi Mubarak AL-Mubaraki, Michael Busler

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In the context of business incubation (BI) as strategic enablers, this paper critically reviews the literature relating to the strategic benefits of BI in the Middle East. The taxonomy of BI benefits in the strategic elements on 1) type, 2) financial model, 3) services, 4) objectives, 5) number of clients, 6) number of graduates, and 7) jobs creation. Understanding the importance of BI benefits can be significant in the economic development although most incubators lead to diversify the economy. Thus, taxonomies of the benefits of BI are produced from both the academic literature and published case studies. In this way, a classification of strategic benefits elements as they relate to incubators has been developed to provide a greater understanding of the benefits needed to obtain a specific element. The result of this paper is Business incubators is aimed entrepreneurship, jobs creation, research commercialization and profitable enterprises in Middle Eastern countries.

Keywords: Economic Development, Incubators, Middle East, Strategic.

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Authors: Fayza Obied-Allah

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Customer’ needs, quality, and value creation while reducing costs through supply chain management provides challenges and opportunities for companies and researchers. In the light of these challenges, modern ideas must contribute to counter these challenges and exploit opportunities. Therefore, this paper discusses the impact of the quality cost on revenue sharing as a most important incentive to configure business networks. This paper develops the quality cost approach to align with the modern era. It develops a model to measure quality costs which might enable firms to manage revenue sharing in a supply chain. The developed model includes five categories; besides the well-known four categories (namely prevention costs, appraisal costs, internal failure costs, and external failure costs), a new category has been developed in this research as a new vision of the relationship between quality costs and innovations in industry. This new category is Recycle Cost. This paper also examines whether such quality costs in supply chains influence the revenue sharing between partners. Using the author's quality cost model, the relationship between quality costs and revenue sharing among partners is examined using a case study in an Egyptian manufacturing company which is a part of a supply chain. This paper argues that the revenue-sharing proportion allocated to supplier increases as the recycle cost of supplier increases, and the revenue-sharing proportion allocated to manufacturer increases as the prevention and appraisal costs increase, as well as the failure costs, the recycle costs of manufacturer, and the recycle costs of suppliers decrease. However, the results present surprising findings. The purposes of this study are developing quality cost approach and understanding the relationships between quality costs and revenue sharing in supply chains. Therefore, the present study contributes to theory and practice by explaining how the cost of recycling can be combined in quality cost model to better understanding the revenue sharing among partners in supply chains.

Keywords: Quality cost, Recycle cost, Revenue sharing, Supply chain.

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Authors: Charawee Butbumrung

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The purpose of this study is to evaluate the monetary worthiness of investment and the usefulness of risk estimation as a tool employed by a production section of an electronic factory. This study employed the case study of accidents occurring in production areas. Data is collected from interviews with six production of safety coordinators and collect the information from the relevant section. The study will present the ratio of benefits compared with the operation costs for investment. The result showed that it is worthwhile for investment with the safety measures. In addition, the organizations must be able to analyze the causes of accidents about the benefits of investing in protective working process. They also need to quickly provide the manual for the staff to learn how to protect themselves from accidents and how to use all of the safety equipment.

Keywords: Cost and benefit, enterprises in Thailand, investment in safety and health, risk estimation.

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Authors: Tomas Cechura, Michal Simon

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The aim of this paper is to create a proposal for determining the costs of logistics processes by using process-oriented calculation methods. The traditional approach is that logistics costs are part of manufacturing overhead which is usually calculated as a percentage surcharge. Therefore in the traditional approach it is not obvious where and in which activities costs were incurred. So it is impossible to trace logistics costs to products. Our point of view is trying to fix or at least improve this issue. Another benefit of applying the process approach is identification of logistics processes which are otherwise part of manufacturing overhead. In the first part this paper describes the development of process-oriented methods over time. The next part shows the possibility of implementing the process-oriented method called Prozesskostenrechnung to logistics processes. The conclusion summarizes advantages and disadvantages of using this method in logistics.

Keywords: Cost, logistics, calculation, process-oriented method.

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Authors: Toshihiko Sasama, Kentaro Kishida, Kazunori Sugahara, Hiroshi Masuyama

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A mobile ad hoc network is a network of mobile nodes without any notion of centralized administration. In such a network, each mobile node behaves not only as a host which runs applications but also as a router to forward packets on behalf of others. Clustering has been applied to routing protocols to achieve efficient communications. A CH network expresses the connected relationship among cluster-heads. This paper discusses the methods for constructing a CH network, and produces the following results: (1) The required running costs of 3 traditional methods for constructing a CH network are not so different from each other in the static circumstance, or in the dynamic circumstance. Their running costs in the static circumstance do not differ from their costs in the dynamic circumstance. Meanwhile, although the routing costs required for the above 3 methods are not so different in the static circumstance, the costs are considerably different from each other in the dynamic circumstance. Their routing costs in the static circumstance are also very different from their costs in the dynamic circumstance, and the former is one tenths of the latter. The routing cost in the dynamic circumstance is mostly the cost for re-routing. (2) On the strength of the above results, we discuss new 2 methods regarding whether they are tolerable or not in the dynamic circumstance, that is, whether the times of re-routing are small or not. These new methods are revised methods that are based on the traditional methods. We recommended the method which produces the smallest routing cost in the dynamic circumstance, therefore producing the smallest total cost.

Keywords: cluster, mobile ad hoc network, re-routing cost, simulation

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Authors: Stephan Printz, Kristina Lahl, René Vossen, Sabina Jeschke

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Strategic investment decisions are characterized by high innovation potential and long-term effects on the competitiveness of enterprises. Due to the uncertainty and risks involved in this complex decision making process, the need arises for well-structured support activities. A method that considers cost and the long-term added value is the cost-benefit effectiveness estimation. One of those methods is the “profitability estimation focused on benefits – PEFB”-method developed at the Institute of Management Cybernetics at RWTH Aachen University. The method copes with the challenges associated with strategic investment decisions by integrating long-term non-monetary aspects whilst also mapping the chronological sequence of an investment within the organization’s target system. Thus, this method is characterized as a holistic approach for the evaluation of costs and benefits of an investment. This participation-oriented method was applied to business environments in many workshops. The results of the workshops are a library of more than 96 cost aspects, as well as 122 benefit aspects. These aspects are preprocessed and comparatively analyzed with regards to their alignment to a series of risk levels. For the first time, an accumulation and a distribution of cost and benefit aspects regarding their impact and probability of occurrence are given. The results give evidence that the PEFB-method combines precise measures of financial accounting with the incorporation of benefits. Finally, the results constitute the basics for using information technology and data science for decision support when applying within the PEFB-method.

Keywords: Cost-benefit analysis, multi-criteria decision, profitability estimation focused on benefits, risk and uncertainty analysis.

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Authors: Jian Yao, Chengwen Yan

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Solar shading designs are important for reduction of building energy consumption and improvement of indoor thermal environment. This paper carried out a number of building simulations for evaluation of the energy performance of different shading devices based on incremental costs. The results show that movable shading devices lower incremental costs by up to 50% compared with fixed ones for the same building energy efficiency for residential buildings, and wing panel shadings are much more suitable in commercial buildings than baring screen ones and overhangs for commercial buildings.

Keywords: Solar shading, Incremental costs, Building energy consumption.

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Authors: Pradip Kundu, Samarjit Kar, Manoranjan Maiti

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In this paper, some practical solid transportation models are formulated considering per trip capacity of each type of conveyances with crisp and rough unit transportation costs. This is applicable for the system in which full vehicles, e.g. trucks, rail coaches are to be booked for transportation of products so that transportation cost is determined on the full of the conveyances. The models with unit transportation costs as rough variables are transformed into deterministic forms using rough chance constrained programming with the help of trust measure. Numerical examples are provided to illustrate the proposed models in crisp environment as well as with unit transportation costs as rough variables.

Keywords: Solid transportation problem, Rough set, Rough variable, Trust measure.

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Authors: Hesham Abdel-Khalek, Sherif M. Hafez, Abdel-Hamid M. el-Lakany, Yasser Abuel-Magd

Abstract:

Investment in a constructed facility represents a cost in the short term that returns benefits only over the long term use of the facility. Thus, the costs occur earlier than the benefits, and the owners of facilities must obtain the capital resources to finance the costs of construction. A project cannot proceed without an adequate financing, and the cost of providing an adequate financing can be quite large. For these reasons, the attention to the project finance is an important aspect of project management. Finance is also a concern to the other organizations involved in a project such as the general contractor and material suppliers. Unless an owner immediately and completely covers the costs incurred by each participant, these organizations face financing problems of their own. At a more general level, the project finance is the only one aspect of the general problem of corporate finance. If numerous projects are considered and financed together, then the net cash flow requirements constitute the corporate financing problem for capital investment. Whether project finance is performed at the project or at the corporate level does not alter the basic financing problem .In this paper, we will first consider facility financing from the owner's perspective, with due consideration for its interaction with other organizations involved in a project. Later, we discuss the problems of construction financing which are crucial to the profitability and solvency of construction contractors. The objective of this paper is to present the steps utilized to determine the best combination of minimum project financing. The proposed model considers financing; schedule and maximum net area .The proposed model is called Project Financing and Schedule Integration using Genetic Algorithms "PFSIGA". This model intended to determine more steps (maximum net area) for any project with a subproject. An illustrative example will demonstrate the feature of this technique. The model verification and testing are put into consideration.

Keywords: Project Management, Large-scale ConstructionProjects, Cash flow, Interest, Investment, Loan, Optimization, Scheduling, Financing and Genetic Algorithms.

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Authors: L. Edirisinghe, Z. Jin, A. W. Wijeratne, R. Mudunkotuwa

Abstract:

Empty container repositioning is a fundamental problem faced by the shipping industry. The virtual container yard is a novel strategy underpinning the container interchange between carriers that could substantially reduce this ever-increasing shipping cost. This paper evaluates the shipping industry perception of the virtual container yard using chi-square tests. It examines if the carriers perceive that the selected independent variables, namely culture, organization, decision, marketing, attitudes, legal, independent, complexity, and stakeholders of carriers, impact the efficiency and benefits of the virtual container yard. There are two major findings of the research. Firstly, carriers view that complexity, attitudes, and stakeholders may impact the effectiveness of container interchange and may influence the perceived benefits of the virtual container yard. Secondly, the three factors of legal, organization, and decision influence only the perceived benefits of the virtual container yard. Accordingly, the implementation of the virtual container yard will be influenced by six key factors, namely complexity, attitudes, stakeholders, legal, organization and decision. Since the virtual container yard could reduce overall shipping costs, it is vital to examine the carriers’ perception of this concept.

Keywords: Virtual container yard, imbalance, management, inventory.

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