The extended MRP model for the evaluation and financing of superannuation schemes in a supply chain

Abstract

The retirement age of industrial workers in national pension schemes is being raised. However, many industrial workers are not able to work until they have reached the increased retirement age. This problem is decreasing social security, increasing workers anxiety regarding the future and influencing the quality and timing of production processes. Disruptions and lower quality items produced in one activity cell of a supply chain can have a ripple effect throughout an entire supply chain. To solve this problem, we should put in place supplementary occupational pension schemes, which would compensate firms for the depreciated ability of their elderly workers to work when they have reached the previous retirement age but have not yet reached the new, higher retirement age. This article is introduces a model that is based on extended MRP Theory. The model can be used as a basis for negotiations between employers and employees to keep production at the same level of quality. The trade-off between higher contributions to supplementary occupational pension schemes and lower added values is considered. Contributions enable the early retirement of industrial workers at one or more workplaces in a supply chain, while lower added value is the result of lower quality and the perturbed timing of items that are produced in one or more activity cells of a supply chain: these issues have a ripple effect throughout an entire supply chain. The net present value approach is used.

Keywords:

• labour
• superannuation
• supply chain
• risk
• management
• decision model

JEL Classification:

• C54
• C61
• C67
• J08
• J24
• M54
• P41

Additional information

Notes on contributors

David Bogataj

David BOGATAJ received BSc in Insurance Engineering, University of Ljubljana, FPP in 1997 and defended Diploma Thesis in Transportation Technology in 2000. He received Master of Actuarial Science (Joint program at University of Ljubljana in cooperation with Faculty of Actuaries Edinburgh and Institute of Actuaries, Oxford) in 2001. He is Qualified Actuary and full member of Slovenian Actuarial Society since 2011. He received his PhD at European Faculty of Law in 2012, where he is employed as Assistant Professor. He is partly employed also as a Research Fellow at MEDIFAS since 2012. He is Elected Representative of Slovenian Association of Actuaries in EUROPEAN ACTUARIAL CONSULTATIVE GROUP in Brussels (GROUPE CONSULTATIF ACTUARIEL EUROPEEN). He is author of many Slovenian pension schemes at insurance companies and public institutions. He wrote 7 scientific articles, 10 papers in Proceedings and 6 books or part of books.

Robert Vodopivec

Robert VODOPIVEC received BSc Degree in Economics (1984) and MSc Degree (Business policy and organisation, 1990). He continued as research fellow at University of Massachusetts USA and after returning home he defended his PhD Thesis at University of Maribor in 1996. He has become assistant professor at University of Ljubljana, FPP. He was Visiting Professor at many institutions of higher education. Since 2010 he is partly employed at Faculty of Organization Studies, where he was Vice Dean for research since 2010 till this autumn. He is also director of MEDIFAS. He wrote 11 scientific articles, 11 invited papers and 22 other papers in Proceedings, 27 books or part of books and many national and international research reports.

Marija Bogataj

Marija BOGATAJ received Math. BSc Degree (1974), MSc Degree (Operations Research, 1978) and Doctor of Engineering Science-Spatial (Urban) modelling – Degree at University of Ljubljana in 1983. She started university career as a lecturer at University of Maribor. In 1994 she was elected Full Professor of Operations Research and Statistics at University of Ljubljana, teaching also Actuarial mathematics, Location theory and Supply chain topics. She was Dean of Faculty of Maritime Studies and Transportation 1993–1999. She is now Head of department for Quantitative Methods at Faculty of Organizational Studies and Head of CERRISK at MEDIFAS. She is supervisor of some master and doctoral students at University of Ljubljana and Independent Faculty of Organizational Studies. During 38 years teaching at University she was/is member of many Scientific Committees of International, Slovenian, Czech and Croatian Journals and Proceedings. In the last 20 years she was visiting professor at many EU Universities. She is author, co-author, or editor/coeditor, of 25 books, author or co-author of 168 articles, essays and working papers, of which 61 have been published in highly ranked scientific journals. She was leading researcher or participated substantially at 49 national and international research projects.