Omprakash K. Gupta

Publications (2)0 Total impact

• Article: Optimal hedging under output price uncertainty

  Bala G. Arshanapalli, Omprakash K. Gupta
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  ABSTRACT: This paper provides a theoretical and empirical analysis of optimal hedging under output price uncertainty. The theoretical analysis is facilitated by exploiting the duality between production and cost while the empirical implementation uses the envelope theorem and the indirect expected utility function. Empirically estimable equations are derived by approximating the indirect expected utility function by a Taylor series approximation. The model is tested by using live cattle data as output while using prices of corn, soybeans, and the feeder cattle as inputs. The results support the theoretical predictions and the evidence shows that live cattle farmers exhibit decreasing absolute risk aversion.
  European Journal of Operational Research.
• Article: Distribution centre location modelling for differential sales tax structure

  Balram Avittathur, Janat Shah, Omprakash K. Gupta
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  ABSTRACT: The central sales tax (CST) in India results in a differential sales tax structure. This contributes significantly to distribution network decisions that build logistics inefficiencies in firms operating in India. In this paper, we develop a model for determining distribution centres (DCs) locations considering the impact of CST. A non-linear mixed integer-programming problem that is formulated initially is approximated to a mixed integer-programming problem. Using a numeric example, the effect of CST rates and product variety on DC locations is studied and found to be having impact. It is felt that the Indian Government proposal to switch over from the present sales tax regime to value added tax (VAT) regime would significantly contribute to reducing the logistics inefficiencies of Indian firms.
  European Journal of Operational Research.