Publications

20 Dec 2004
Research & Ideas

How an Order Views Your Company

profitable parts of their business. It also enabled them to segment different types of order to improve their efficiency. Taken together, the improvements in efficiency and the greater focus on highly profitable View Details

Keywords: by Sarah Jane Johnston

Article

Multi-Echelon Inventory Management Under Short-Term Take-or-Pay Contracts

By: Joel Goh and Evan L. Porteus

We extend the Clark–Scarf serial multi-echelon inventory model to include procuring production inputs under short-term take-or-pay contracts at one or more stages. In each period, each such stage has the option to order/process at two different cost rates; the cheaper... View Details

Keywords: Inventory Management; Multi-echelon Inventory Theory; Karush Lemma; Clark-Scarf Model; Convex Ordering Cost; Advance Commitments; Supply Chain

October 2007 (Revised January 2009)
Background Note

Analyzing Relative Costs

By: Hanna Halaburda and Jan W. Rivkin

Introduces students to the technique of relative cost analysis, a core technique of strategists. Among the intricate quantitative analyses that strategists undertake, relative cost analysis may be the most common. The goal of a relative cost analysis is simply to... View Details

Keywords: Cost; Management Analysis, Tools, and Techniques; Mathematical Methods; Competition; Competitive Advantage

Educators

24 Apr 2014
News

Mobile robots revolutionize order fulfillment

orders. Kiva’s distribution center automation technology simplifies operations and reduces costs while increasing flexibility. When orders are received, hundreds of autonomous mobile robots are directed by a... View Details

March 2005 (Revised March 2006)
Background Note

Activity-Based Costing and Capacity

By: Robert S. Kaplan

Discusses the use of budgeted rather than historical data in an activity-based costing (ABC) model and argues for calculating rates using practical capacity, not actual utilization. An ABC model need not be limited to analysis of historical data. When cost driver rates... View Details

Keywords: Activity Based Costing and Management; Accounting Industry

Educators

December 2019
Article

Brokers and Order Flow Leakage: Evidence from Fire Sales

By: Andrea Barbon, Marco Di Maggio, Francesco Franzoni and Augustin Landier

Using trade-level data, we study whether brokers play a role in spreading order flow information. We focus on large portfolio liquidations, which result in temporary drops in stock prices, and identify the brokers that intermediate these trades. We show that these... View Details

Keywords: Predatory Trading; Back Running; Fire Sales; Brokers; Stocks; Price; Information; Knowledge Dissemination; Ethics

Read Now

12 Nov 2001
Research & Ideas

Facing the New World Order

continuation of the process of globalization. I think this is a safe bet, although one has to be rather nervous right now with the higher costs of trade, the difficulties of moving people around, the difficulties of crossing borders, the... View Details

Keywords: by Staff

October 2000 (Revised April 2001)
Case

Cost of Capital at Ameritrade

By: Mark L. Mitchell and Erik Stafford

Ameritrade Holding Corp. is planning large marketing and technology investments to improve the company's competitive position in deep-discount brokerage by taking advantage of emerging economies of scale. In order to evaluate whether the strategy would generate... View Details

Keywords: Developing Countries and Economies; Asset Pricing; Cash Flow; Cost of Capital; Investment; Marketing; Mathematical Methods; Competition; Information Technology; Internet and the Web; Financial Services Industry

Educators

Using trade-level data, we study whether brokers play a role in spreading order flow information. We focus on large portfolio liquidations, which result in temporary drops in stock prices, and identify the brokers that intermediate these... View Details

24 Jan 2005
Research & Ideas

Rethinking Activity-Based Costing

department's activities. Activity % of Time Spent Assigned Cost Activity Quantity Cost-Driver Rate Process customers orders 70% $392,000 49,000 $8 per order Handle customer... View Details

Keywords: by Robert S. Kaplan & Steven R. Anderson

11 Apr 2007
Research & Ideas

Adding Time to Activity-Based Costing

companies do not need a full-fledged ERP system to get most of the benefits. The TDABC system can import data from separate systems, such as the monthly general ledger, a production scheduling system, and a customer order file, and still... View Details

Keywords: by Sarah Jane Gilbert

28 Jul 2003
Research & Ideas

It’s India Above China in New World Order

insolvent. The banking problem is one of the biggest costs of the delay associated with developing a vibrant, domestic private sector. Here are our concerns for India. How will India rein in its fiscal deficit? How will India discipline... View Details

Keywords: by Martha Lagace

25 Sep 2019
Research & Ideas

The Economic Cost of Physician Burnout

or leave their jobs due to burnout. They then correlated those numbers with the percentage of burnout experienced by doctors in different age groups and medical disciplines in order to estimate the overall effects of burnout on staffing... View Details

Keywords: by Michael Blanding; Health

12 Aug 2009
Working Paper Summaries

Culture Clash: The Costs and Benefits of Homogeneity

Keywords: by Eric J. Van den Steen

October 2010
Article

Culture Clash: The Costs and Benefits of Homogeneity

By: Eric Van den Steen

This paper develops an economic theory of the costs and benefits of corporate culture-in the sense of shared beliefs and values in order to study the effects of "culture clash" in mergers and acquisitions. I first use a simple analytical framework to show that shared... View Details

Keywords: Cost vs Benefits; Organizational Culture; Economics; Information Management; Forecasting and Prediction; Values and Beliefs; Mergers and Acquisitions; Framework; Satisfaction; Motivation and Incentives; Power and Influence; Communication

2009
Working Paper

Culture Clash: The Costs and Benefits of Homogeneity

By: Eric J. Van den Steen

This paper develops an economic theory of the costs and benefits of corporate culture—in the sense of shared beliefs and values—in order to study the effects of "culture clash" in mergers and acquisitions. I first use a simple analytical framework to show that shared... View Details

Keywords: Mergers and Acquisitions; Cost vs Benefits; Values and Beliefs; Organizational Change and Adaptation; Organizational Culture; Motivation and Incentives; Theory