Due to changes in individual demand, manufacturing processes have become more complex and dynamic. To cope with respective fluctuations as well as machine breakdowns, capacity adjustment is one of the major effective measures. Instead of labor-oriented methods, we propose a machinery-based...

The transaction-level analysis of security price changes by Madhavan, Richardson, and Roomans (1997, hereafter MRR) is a useful framework for financial analysis. The first-order Markov property of trading indicator variables is a critical assumption in the MRR model, which contradicts the...