Vinicius Amorim Sobreiro

Product mix: the approach of throughput per day

Defining product mix is very important for organisations because it determines how productive resources are allocated among various operations. However, it is often defined subjectively. The methods commonly used for this definition are Integer Linear Programming and heuristics based in Theory of Constraints, which use maximum throughput as a performance measure. Although this measure provides maximum throughput to specific problem, it does not consider aspects of time, as days, utilised to make the throughput. Taking this into account, the aim of this paper is to present a throughput per day approach to define product mix, as well as to propose a constructive heuristic to help in this process. The results show that the proposed heuristic obtained satisfactory approximation when compared to the optimum values obtained by enumeration.

A measure of sustainability of Brazilian agribusiness using directional distance functions and data envelopment analysis

The social and environmental impacts caused by the modernization of Brazilian agribusiness have evoked a growing interest in the search of balance between social-economics development and the adequate use of natural resources, driving the country to sustainable development. Therefore, the main aim of this article is to estimate a set of indicators of relative efficiency in the Brazilian agricultural sector, which satisfy the concept of Pareto optimality, potentiates simultaneously both economic, ecological dimensions and social functions. To reach this purpose, the method of directional distance functions and data envelopment analysis was applied. These indicators confirm, in different ways, the hypothesis that it is possible to perform consistent productive strategies with the maximization of social welfare, despite the apparent antagonism among these three dimensions. In addition, it is shown that efficient Brazilian states tend to combine the three dimensions in different ways. Hence, it can be concluded that several equilibrium taken sustainable can be achieved through different actions on poverty and environmental impact reduction without necessarily generating productive inefficiencies. This result can be considered of prominent importance for sustainable development in Brazil and can also serve as a reference in the definition of goals of the plan ‘Brazil without Misery’ and international commitments to reduce Greenhouse Gas – GHG – in Brazil, especially for the 17 inefficient Brazilian states.

When less is better: Insights from the product mix dilemma from the Theory of Constraints perspective

Perhaps due to its origins in a production scheduling software called Optimised Production Technology (OPT), plus the idea of focusing on system constraints, many believe that the Theory of Constraints (TOC) has a vocation for optimal solutions. Those who assess TOC according to this perspective indicate that it guarantees an optimal solution only in certain circumstances. In opposition to this view and founded on a numeric example of a production mix problem, this paper shows, by means of TOC assumptions, why the TOC should not be compared to methods intended to seek optimal or the best solutions, but rather sufficiently good solutions, possible in non-deterministic environments. Moreover, we extend the range of relevant literature on product mix decision by introducing a heuristic based on the uniquely identified work that aims at achieving feasible solutions according to the TOC point of view. The heuristic proposed is tested on 100 production mix problems and the results are compared with the responses obtained with the use of Integer Linear Programming. The results show that the heuristic gives good results on average, but performance falls sharply in some situations.

A systematic review of literature about finance and sustainability

ABSTRACT The relationship between finance and environmental sustainability areas has increasingly been attracting the attention of researchers and professionals in this field. However, there are not many studies that gather and systematize the available knowledge about the issue of financial management and the concern with sustainable development. The objective of this paper is to present the results or main gaps from a systematic review of literature about the relationship between finance and sustainability. We have adapted the methods presented by Lage Junior et al. [2010. “Variations of the Kanban System: Literature Review and Classification”.International Journal of Production Economics 125 (1), 13–21.], Jabbour [2013. Environmental Training in Organisations: From a Literature Review to a Framework for Future Research. Resources, Conservation and Recycling 74, 144–155] and Seuring [2013. A Review of Modeling Approaches for Sustainable Supply Chain Management. Decision Support Systems 54 (4), 1513–1520], and we then analysed the articles published between 2011 and 2015 in the main journal of the area, the Journal of Sustainable Finance & Investment. The method applied allowed us to identify existing gaps in the literature, such as, for example, a greater focus on developing countries or the use of empiric studies with a quantitative approach.

Stochastic Cash Flow Management Models: A Literature Review Since the 1980s

Defining cash balance is a classic problem in firms’ financial management. For this reason, the aim of this study is to carry out a literature review, presenting the main cash flow management models from the Baumol and Tobin models in 1950s, to Miller–Orr model in 1960s and their development since the 1980s, focused essentially in stochastic models, with publication in economic, financial, and operation research journals. Thus, this chapter provides a review on cash balance management models in order to obtain a more consistent model on a par with investment analysis, observing the characteristics associated with cash maintenance, as well as diversification of financial applications and resources and the lack of literature in stochastic models for this problem.

Prepurchase financing pool: Revealing the IRR problem

ABSTRACT Internal rate of return (IRR) is one of the most common and important indicators in investment analysis because it is often used by managers and practitioners as a decision-making criterion. Moreover, the IRR reflects the financial cost in financing decisions and it helps to answer the following question when comparing different financing alternatives: “Which loan is the cheapest?” Among the different types of loans in Brazil, there is a financial product called a prepurchase financing pool (PPFP) that is generally regarded as the best option for financing or loans. The objective of this article is to use the prepurchase financing pool to show the flaws of IRR in financial analysis. In particular, when IRR is used to evaluate the prepurchase financing pool, one finds problems of reliability regarding (i) existence, (ii) uniqueness, and (iii) economic interpretation of the rate. The results show that the prepurchase financing pool is relevant evidence that the IRR flaws are found in financial products.

Connecting the pieces of the puzzle toward sustainable organizations : a framework integrating OM principles with GSCM

Purpose – The purpose of this paper is to propose a framework integrating the Hart and Milstein (2003) strategies for organizational sustainable development (SD) with the ideas of Kleindorfer et al. (2005) on sustainable operations management (SOM), which requires guidance of green supply chain management (GSCM). Design/methodology/approach – The construction of the framework was based on previous studies that discussed synergies between operations management principles with environmental bias and studies on adoption of GSCM practices. Findings – The proposed framework guides managers to reconcile operations management practices/principles that are already being implemented in organizations with an environmental perspective because these practices sustain organizations to simultaneously reach SOM and SD. Originality/value – The paper presents a framework that provides guidance on how organizations can seek sustainability in their operations, considering that articles on the topic of sustainability have not been developed with this specific focus.

Capital structure management differences in Latin American and US firms after 2008 crisis

Purpose – This paper aims to analyse the capital structure determining factors of Latin American and US corporations after the crisis of 2008, as a means of comparing theoretical assumptions and empirical results in markets of different efficiency levels. Design/methodology/approach – The study sample comprises 1,091 companies belonging to the six largest economies in Latin America plus the USA, in the years 2009 to 2013. The authors performed a regression with data from a balanced overview, which were obtained by using the criterion of minimum weighted square. Findings – The results demonstrated differences in determining factors of capital structure between companies from Latin America and from the USA. The pecking order theory was mostly observed in Latin American companies and the trade-off theory greater was closely aligned with US firms. Originality/value – This research brings new contributions to the issue, once the differences and determinative of the debt profile in companies from different economic contexts are compared.

Evaluation of the relationship between education and sustainability in peasant movements: The experience of the National Education Program in Agrarian Reform

Brazil is one of the largest agricultural producers in the world. However, its agrarian composition is based on two markedly different production models, particularly in relation to sustainability: a peasant family agriculture, which plays an important role in food production for domestic consumption and advocates agro-ecological practises; and agribusiness, the politically and economically hegemonic model that produces commodities for export based on monoculture and intensive use of pesticides. Therefore, in order to create the means to develop peasant lands, social movements and peasants have engaged themselves politically and defended an education model grounded in sustainable practises of production and social organisation. Taking this into account, the main purpose of this paper is to analyse and assess the Brazilian experience of integration between education and sustainability, in the National Education Program in Agrarian Reform (PRONERA). To accomplish this aim, a survey with a semi-structured questionnaire was carried out among teachers, students, monitors, and coordinators of the course offered by PRONERA. The surveys showed that the courses are promoting the concepts of sustainability among peasants. However, many adjustments need to be taken into consideration during the planning process for the next courses offered by PRONERA.

Income inequality and environmental degradation: estimates with panel data in Brazilian states

In recent years, income inequality and environmental degradation studies of BRICs members or countries such as Brazil have become a topic of lively debate because of their significant influence on regional and global affairs and fast–growing economies. Taking this into account and extending the line of research of Bhattacharya and Lueck, Chimeli, Vollebergh, Melenberg and Dijkgraaf and Wei, the present paper examines the economic relationship between income inequality and environmental degradation with panel data in the Brazilian states. In order to examine this way, in which subjects are connected, the ordinary least squares - OLS is used, considering the fuzzy set theory. In conclusion, we identified that the relationship between the social and environmental indexes were not significant. Consequently, we believe that the main explanation for this result is the lack of non–specialised workforce and several laws for controlling the environmental degradation in many Brazilian states.