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The purpose of this paper is to outline a mathematical approach which may prove to be helpful to the decision maker in solving make-buy problems, particularly mathematical programming techniques for make-buy problems in a production scheduling context will be discussed using the Holt Modigliani and Simon and Elmaghrabhy models of production scheduling as point of departure. Every make-buy problem may have noneconomic consequences, often strong enough to dictate a decision regardless of results of an economic analysis. These noneconomic factors should be taken into account even before an attempt to formulate a linear programming make-buy model is made. As in every other model, assumptions made are limiting, since usually make-buy problems are unique for a given firm models presented in this paper have to be altered, amended or enlarged to satisfy the characteristics of a specific make-buy problem. It should also be mentioned, that the authors do not claim to have presented the final solution to the problem. The purpose of the paper consisted only in showing one of many possible solutions, which hopefully will be integrated with other approaches of mathematical budgeting.

The research reported in this paper attempts to make a case for the notion that it may be advantageous for Operations Research (OR)/Management Science (MS) units in organizations to focus on the existing infrastructure of the organization and the means to change the infrastructure as an integral part of their strategy to achieve organizational legitimization. In other words, unless the appropriate organizational form exists, or seems amenable to modification, the acceptance and implementation of rational OR/MS decision algorithms, that is their acceptance by top management and client groups such as corporate planning, marketing, production, will be severely inhibited. This makes it particularly important to explore the measurement of organizational form and the construction of indices that later may be refined and on the basis of a relatively broad and diverse data base, allow the design of organizational forms that can accommodate organizational innovation. Overall, the analysis of organizational form indicators used here implies that removal of organizational bottlenecks is imperative for the implementation of OR/MS decision aids, and should lead to immediate improvements in decision making processes in the region.

The structure of wages and salaries belongs to those components of organizational structure, which have an essential impact on the effectiveness of the firm. As a special object of the theory of pay differentials or pay structures, respectively, it is one of the classical main topics of the ongoing discussion on company pay problems. For this reason, it is surprising to notice deficiencies in conceptualization and operationalization of the variable in question. Unlike other structural variables such as centralization of tasks and decision-making, standardization, formalization and specialization of task fulfillment, or configuration, there is a lack of operational defined characteristics appropriate to describe and compare company pay structures. The present paper is only a first step in research to discover the implications of the Lorenz Curve-Approach for business firms. Therefore, even its potential importance is not quite clear in the moment. Without entering into daring speculations, which might prove to be far too optimistic in the near future, people are convinced that this approach can serve as a fruitful management tool in structural comparisons. Furthermore, it is suitable for intrafirm comparisons on different levels of organizational hierarchy and should even be helpful for certain strategic aspects of personnel planning.

In the cost-price calculation of a product which determines its selling price two components can be distinguished, one depending on measurable values, the other on the estimation of common charges to be apportioned to the various products made by the company. This estimation introduces in the calculation an incertitude the origin of which lies partly in the conception of the data of this estimation, partly in the contingencies of economic life. The first fact is a function of the basic principles allowing the choice of a parameter, the second justifies the modern techniques of management, by directing this latter in accordance with estimates, taking into account the probability, the dimensions and the influence of these contingencies. The incertitude originating from the current methods, which are often empirical, can thus be transformed into quasi-certitude. This paper recalls some principles it relies on considerations on the choice of the parameters and their consequences, as well as on the results obtained according to the application of various conceptions. The observation of frequently used practices shows that this question of cost is often treated in an empiric way, the consequence of which is manifest in the week rentability of certain enterprises. At the origin there is ignorance, not only in the cost formation, but even as regards principles of management and relations between essentials of the latter and the cost formation.

The concept of a minimum required return on investments, or cost of capital as it is often called, is a strategic variable in the modern theory of the investment of the firm. Current formulations of the concept, however, depend in a crucial way on the existence of an organized capital market; for in the absence of an objective estimate of the investment value of a firm's securities, much of the theory must be shunted aside when attempting to analyze investment decisions. Such is the case in the vast majority of firms whose securities are not traded in organized markets. This paper defines an alternative formulations of the cost of capital, derived from a firm's investment demand schedule and sets out an operational method for its estimation which does not depend on the social contrivance of an organized security market. Neo-classical approaches to the problem of analyzing a firm's investment decisions emphasize the role played by the cost of capital. The use of the cost of capital as the rate of discount provides an upper bound to the firm's investment budget and insures that only those projects which offer a positive net return after all costs, including capital costs, have been deducted will be accepted.

The article discusses the potential of accounting as management information system. Much of contemporary literature in management, accounting, data processing and allied disciplines is concerned with the need for timely and relevant information to facilitate the decision-making process at all levels of management. The recommendations in this paper focuses on transactions, as business events which affect the magnitude and nature of the net assets of the business entity, have many dimensions. Accounting for the many dimensions of a transaction facilitates planning, reporting, analysis and control in the business organization. Conventional accounting rules, while important for some purposes, must not constrain the data processed. Non-monetary as well as monetary, predictive as well as historial, data must be generated, reported and evaluated. The double entry network flow mechanism which is characteristic of the accounting model is an excellent mechanism for tracing the flows of recourses, viewed in their many facets, through the various organizational activities and levels. Vector and matrix concepts provide a particularly useful structure for implementing the accounting model.

This article focuses on critical evaluation of IUC-conference held in Bergen, Norway during 1971. The classic mistake during the conference resulted in a perfectly hilarious situation since after all the conference was supposed to be on participation. The whole set-up of the conference therefore was illustrative of the fact which gradually became obvious, namely that management is quite willing to talk about participation as long as the talking is one way and does not deteriorate into the actual thing. The intake of formalized, one-way communication is most efficiently effected by studying the material behind one's own desk in one's own good time. The conference itself should be organized in such a way that groups may be formed around authors who have submitted papers, for formal discussion among individuals who may, in such manner, be expected to be well versed in the subject at hand. But even more important is the provision which should be made for informal contact.