Modelling financial

A growing number of engaged physicists [325,326] have recently attempted to analyze and model financial markets and economic systems in general as initiated by the classical work of Majorana [327] and others [328,329]. In 1990s the new field of econophysics emerged [330] being complementary to the traditional approaches of mathematical finance [312],... 

Additionally, as indicated by Varma et al. (2007) there is a need to model financial planning decisions, R D resource allocation, as well as capacity expansion decisions within an integrated model, so that capital and capacity allocation can be performed simultaneously with R D projects selection and prioritization in order to enhance value generation. Certainly, R D decisions necessarily impact the design and the regular activities of the entire SC. Thus, such operational impact should be considered and assessed at the time R D and SC decisions are taken. 

Considerable attention has been focused on the kind of motives which drive the decisions and choices of individuals in a work setting. An influential model of motivation was the "scientific management" movement of F. W. Taylor (1911) which viewed motivation largely in terms of rational individual decisions to maximize financial gain. This theory claimed that workers only wanted to make as much as possible for as little effort as possible, and that they were neither interested in, nor capable of planning and decision- making. 

Value driver analysis, a development of financial analysis visualizations first created at DuPont [19], provides an intuitive, graphical way of breaking down the sources of value (Fig. 11.4) and, in conjunction with stochastic models of the project process, can be used to quantify the likely contribution of different kind of change. 

Figure 24.4 The decision-analytic model shows the three strategies that were examined by Arnold and researchers [22] to evaluate the financial implications of the direct thrombin inhibitor argatroban for early treatment (<48 hours after thrombocytopenia onset), compared with delayed treatment, of heparin-induced thrombocytopenia (HIT) with or without thrombosis.

To better understand managed care and the reasons for its growth, it is useful to discuss the evolution of payment mechanisms for health care from no insurance, to traditional indemnity insurance, to managed care. In the no-insurance model, the patient selects a health care provider and then pays the provider directly for health care goods and services. The choice of health care provider and the type and number of services provided are limited only by the financial constraints of the patient. The problem with this model is that the patient is exposed to potentially catastrophic health care expenses. Health insurance was developed as a way to protect patients against this risk. Health insurance often is provided through the employer and prior to the mid-1980s was likely to be indemnity fee-for-service insurance. In this traditional insurance... 

More recently, large databases have been used to estimate the effect of drug co-payment in the USA under different insurance schemes.10 The conclusion reached is that there is a significant interaction effect between the behaviour of demand and prescriber incentives. Thus, larger prescription drug copayments are associated with lower expenditure when the doctor does not share the financial risk of the cost of the drugs (that is, practises in an independent practice association) but this effect is barely perceived in managed care models in which the doctor has incentives for cost containment. 

We acknowledge financial support by the MIUR SPARX and MIUR-FSRIS project Impianti Innovativi multiscopo per la produzione di radiazione X and by the INFN project PLASMON-X. Access to the IOQ installation was supported by LASERLAB. We thank F. Cornolti from the Physics Department of the University of Pisa for fruitful discussion and suggestions on the preliminary modeling of the data. 

The critical load concept is intended to achieve the maximum economic benefit from the reduction of pollutant emissions since it takes into account the estimates of differing sensitivity of various ecosystems to acid deposition. Thus, this concept is considered to be an alternative to the more expensive BAT (Best Available Technologies) concept (Posch et al., 1996). Critical load calculations and mapping allow the creation of ecological-economic optimization models with a corresponding assessment of minimum financial investments for achieving maximum environmental protection. 

Make an early architectural decision about how much you will tradeoff performance, seamlessness, reuse, code flexibility, and so on. If your clients shout for little functional enhancements every day (something that is typical for in-house financial trading software), optimize the underlying communications and infrastructure but leave the business model pristine. But if your software will be embedded in a million car engines for 10 years, optimize for performance. 

The extent to which the code reflects the business model is related to the architecture. If the code must be changed every few days to keep competitive with others (for example, financial dealing systems), the requirements of users should translate directly to code changes, which must closely reflect a suitably flexible business model. If high performance is needed and changes are rare (as in an... 

The important thing is that we are not dealing with a model of ary of the programs that communicate. Instead, at issue is a model of what they are talking to each other about, whether documents, financial transactions, aircraft positions, or talking pictures. 

For example, a financial system typically has not only the bare functional requirements (of settling trades or whatever) but also must conform to the company s business rales and the legal constraints and the interface conventions of the external accountancy systems. Each of these sets of rales is defined with its own model, and each may impose its own rales on the system. 

Value input data are given parameters to be entered by the planner in the model provide by controlling or finance functions in the company and often determined by financial markets. 

The value objective function is oriented at the company s profit and loss definitions. Guiding principle is to only use value parameters that can be found in the cost controlling of the company signed by controlling. Penalty costs and without currency and weighting factors being applied to steer optimization results but having no actual financial impact - as it can be often found in supply chain optimization models - do not meet this requirement. 

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