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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: LLCF who wrote (68484)2/16/2001 12:44:08 PM
From: Les H  Read Replies (1) of 436258
 
CPU hedonics from fallstreet

--Exactly how much more productive is a Pentium 1.4 G than a 700 MHz system?

According to the latest BLS figures the hedonic adjustment for CPU speed is $3.53 per
MHz. That is, the workers producing the 1.4 GHz PC are assumed to have created an extra
$2471 worth of value with their time, over & above the sale of the PC.
If 1.4 GHz PCs sell now for the same price 700 MHz PCs sold last year -- say $2000, just to
make up a number -- and if it took the exact same amount of labor and capital to produce
both PCs, then the change in "hedonic value" is (2000+2471)/2000 = 224%. J.S.

With all this "New Age" / "New Economy" business of computerized supply chain
management, enterprise resource management, just in time inventory, etc., why are we
going through a massive inventory correction? Weren't the gee-whiz software of firms like
Manugistics and Oracle supposed to prevent this? I wonder what guarantees or
warranties for defective merchandise provided. C.S.
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