Serial Acquisition as a Capital Budgeting Problem.

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Bibliographic Details
Title:	Serial Acquisition as a Capital Budgeting Problem.
Authors:	Hentschke, Guilbert C.¹, Kehoe, Ellen²
Source:	Journal of the American Society for Information Science. Sep1980, Vol. 31 Issue 5, p357-362. 6p.
Subjects:	Subscription libraries, Periodicals, Capital budget, Universities & colleges, Library inventories, Information technology
Abstract:	This study examines the costs and benefits of purchasing periodicals on a one-year versus a three-year subscription basis. The decision problem is viewed as a capital budgeting problem where the objective is con minimization over a six-year time span. The variables considered critical to the decision include cost of capital, subscription reorder cost facing the library, annual rate of change of subscription rates, and ratio of three-year to one-year subscription cons. The model was developed and applied with the assistance of library managers at the University of Rochester. Results of the study indicate that, even under those conditions most favorable to maintaining a one-year subscription policy, substantial savings can accrue by shifting to a three-year subscription policy. The Serials and Binding Department at the University has, as a consequence, shifted to a three-year purchasing policy for periodicals. Although the model was developed for a specific library system, it is sufficiently general and is simple enough to be applied in other settings without difficulty. [ABSTRACT FROM AUTHOR]
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Database:	Engineering Source

Description
Abstract:	This study examines the costs and benefits of purchasing periodicals on a one-year versus a three-year subscription basis. The decision problem is viewed as a capital budgeting problem where the objective is con minimization over a six-year time span. The variables considered critical to the decision include cost of capital, subscription reorder cost facing the library, annual rate of change of subscription rates, and ratio of three-year to one-year subscription cons. The model was developed and applied with the assistance of library managers at the University of Rochester. Results of the study indicate that, even under those conditions most favorable to maintaining a one-year subscription policy, substantial savings can accrue by shifting to a three-year subscription policy. The Serials and Binding Department at the University has, as a consequence, shifted to a three-year purchasing policy for periodicals. Although the model was developed for a specific library system, it is sufficiently general and is simple enough to be applied in other settings without difficulty. [ABSTRACT FROM AUTHOR]
ISSN:	00028231
DOI:	10.1002/asi.4630310507