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Sarbanes-Oxley will require radical changes to the manner and speed of information flow within the corporation: IT and its value position will change forever Financial system overhauls will have to address all the control, monitoring, and reporting processes of a company, meaning that a top-to-bottom examination of any and all systems, from inventory control to payroll, will be required IT departments and the company will likely face higher labor costs as they prepare to meet the compliance regulations and then maintain the systems afterward Requests for system changes will likely come fast and often, and projects that might have seemed unjustifiable from a cost-benefit standpoint in the past will likely take on new significance under Sarbanes-Oxley rules As daunting as the task of overhauling a company s IT system is, the CIO faces an even stronger legal hazard from the rollout of the Sarbanes-Oxley Act As it becomes more and more apparent that IT is an integral link in the financial reporting system, CIOs will likely be held to the same liability standards as CEOs and CFOs when it comes to assuring the accuracy of reports In April 2003, HealthSouth s CIO, Kenneth Livesay, was fired and pleaded guilty to federal charges of falsifying financial information and conspiracy to commit wire and securities fraud He and seven other financial employees, including the CFO and Chief Controller, admitted their guilt in the scheme to artificially inflate HealthSouth s earnings and assets during the past several years The information coming out is only as good as the information going in, and the onus will be on the IT department to ensure data integrity, reliability, and accuracy

few years ago, I purchased a toy for my son I had invested an hour or so trying it out and talking to the clerk at ToysR-Us, and was proud of the decision I had made The sales clerk thought he had made a sale But to my surprise and disappointment, my son wasn t interested in the toy at all He didn t thank me or acknowledge my hard work As it turned out, a couple of his friends had the same toy and hated it A few days later, I returned the toy to the store The pride of my decision making was extinguished Both the sales clerk and I learned a valuable selling lesson that day: to make a sale requires that all decision influencers come to terms with the decision

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This relation can be directly veri ed from the explicit formulas (5111) and (522) for Pdelay and Ploss In Section 98 we establish the relation (533) in a more general framework by showing that the state probabilities in a nite-capacity queue with Poisson arrivals are often proportional to the state probabilities in the corresponding in nite-capacity model By formula (522), Ploss =

812 Consider an unreliable production unit whose output is temporarily stored in a nite buffer with capacity K The buffer serves for the demand process as protection against random interruptions in the production process For the output there is a constant demand at rate When operating, the production unit produces at a constant rate P > if the buffer is not full and produces at the demand rate otherwise If demand occurs while the unit is down and the buffer is empty then it is lost The operating time of the unit is exponentially distributed with mean 1/ If a failure occurs, the unit enters repair for an exponentially distributed time with mean 1/ Determine the long-run fraction of demand lost and determine the average inventory level in the buffer (Hint : de ne the state of the system as (1, x) and (0, x) respectively when the inventory in the buffer is x and the unit is operating or down The process regenerates itself each time the system enters state (0,0) Use differential equations to get the desired performance measures) This problem is motivated by Wijngaard (1979)

The key renewal theorem has a long history, and analytic proofs were given under rather restrictive conditions The reader is referred to the book of Feller (1971) for a transparent proof under the weak condition of direct Riemann integrability; see also Asmussen (1987) The results for the alternating renewal process in Section 83 are proved in greater generality in Tak cs (1957) The material from Example 831 is a based on the paper of Van der Heijden (1987) The renewal-theoretic method used in Section 84 to derive asymptotic estimates for ruin and waiting-time probabilities comes from Feller (1971) Another application of this powerful method to a storage problem for dams is given in De Kok et al (1984) A good reference on heavytailed distributions is Embrechts et al (1997)

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