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Articles 1 - 9 of 9
Full-Text Articles in Business
A Quay Crane System That Self-Recovers From Random Shocks, Yun Fong Lim, Yan Zhang, Chen Wang
A Quay Crane System That Self-Recovers From Random Shocks, Yun Fong Lim, Yan Zhang, Chen Wang
Research Collection Lee Kong Chian School Of Business
The main challenge for a container terminal is to maximize its throughput using limited resources subject to various operational constraints under uncertainty. Traditional methods try to achieve this through an optimized plan by solving a quay crane scheduling problem; but the plan may become obsolete or infeasible after shocks (changes in the system due to uncertainty). To respond to shocks these methods require frequent re-planning, which increases the operations cost. We propose a new method to counter this. Instead of creating plans, we develop an operating protocol to respond to shocks without re-planning. Under this protocol, each quay crane along …
Supply Management In Multiproduct Firms With Fixed Proportions Technology, Onur Boyabatli
Supply Management In Multiproduct Firms With Fixed Proportions Technology, Onur Boyabatli
Research Collection Lee Kong Chian School Of Business
This paper studies the supply management of a primary input, where this input gives rise to multiple products in fixed proportions. My objective is twofold. First, I study fixed proportions technology under demand uncertainty in comparison with flexible and the dedicated technologies. I show that fixed proportions technology has a cost- pooling value over dedicated technology, which is larger than the capacity-pooling value of flexible technology over dedicated technology. I identify the critical role that demand correlation plays with the fixed proportions technology: In contrast to the capacitypooling value which decreases in demand correlation, the cost-pooling value increases in demand …
A Two-Item Two-Warehouse Periodic Review Inventory Model With Transshipment, Koushik S. Ramakrishna, Sharafali Moosa, Yun Fong Lim
A Two-Item Two-Warehouse Periodic Review Inventory Model With Transshipment, Koushik S. Ramakrishna, Sharafali Moosa, Yun Fong Lim
Research Collection Lee Kong Chian School Of Business
We study a two-item two-warehouse periodic review inventory model that allows transshipment between warehouses and emergency orders. The model helps to determine two decisions: (i) the order up to levels for the two items at the two warehouses, and (ii) whether to accept a transshipment request from the other warehouse. The acceptance of a transshipment request in a warehouse depends on the time until the next review epoch and the inventory level of the warehouse. We propose a search procedure, which is a combination of greedy heuristics and a Lagrangian relaxation method, to minimize the total operating cost of the …
Dynamic Pricing For Hotel Rooms When Customers Request Multiple-Day Stays, Selvaprabu Nadarajah, Yun Fong Lim, Qing Ding
Dynamic Pricing For Hotel Rooms When Customers Request Multiple-Day Stays, Selvaprabu Nadarajah, Yun Fong Lim, Qing Ding
Research Collection Lee Kong Chian School Of Business
Prominent hotel chains quote a booking price for a particular type of rooms on each day and dynamically update these prices over time. We present a novel Markov decision process (MDP) formulation that determines the optimal booking price for a single type of rooms under this strategy, while considering the availability of rooms throughout the multiple-day stays requested by customers. We analyze special cases of our MDP to highlight the importance of modeling multiple-day stays and provide guidelines to potentially simplify the implementation of pricing policies around peak-demand events such as public holidays and conferences. Since computing an optimal policy …
Consignment Contracts With Revenue Sharing For A Capacitated Retailer And Multiple Manufacturers, Yun Fong Lim, Yunzeng Wang, Yue Wu
Consignment Contracts With Revenue Sharing For A Capacitated Retailer And Multiple Manufacturers, Yun Fong Lim, Yunzeng Wang, Yue Wu
Research Collection Lee Kong Chian School Of Business
We consider a retailer with limited storage capacity selling n independent products. Each product is produced by a distinct manufacturer, who is offered a consignment contract with revenue sharing by the retailer. The retailer first sets a common revenue share for all products, and each manufacturer then determines the retail price and production quantity for his product. Under certain conditions on price elasticities and cost fractions, we find a unique optimal revenue share for all products. Surprisingly, it is optimal for the retailer not to charge any storage fee in many situations even if she is allowed to do so. …
A Comparison Of Milestone-Based And Buyout Options Contracts For Coordinating R&D Partnerships, Shantanu Bhattacharya, Vibha Gaba, Sameer Hasija
A Comparison Of Milestone-Based And Buyout Options Contracts For Coordinating R&D Partnerships, Shantanu Bhattacharya, Vibha Gaba, Sameer Hasija
Research Collection Lee Kong Chian School Of Business
We analyze optimal contractual arrangements in a bilateral research and development (R&D) partnership between a risk-averse provider that conducts early-stage research followed by a regulatory verification stage and a risk-neutral client that performs late-stage development activities, including production, distribution, and marketing. The problem is formulated as a sequential investment game with the client as the principal, where the investments are observable but not verifiable. The model captures the inherent incentive alignment problems of double-sided moral hazard, risk aversion, and holdup. We compare the efficacy of milestone-based options contracts and buyout options contracts from the client's perspective and identify conditions under …
Electric Vehicles With A Battery Switching Station: Adoption And Environmental Impact, Buket Avci, Karan Girotra, Serguei Netessine
Electric Vehicles With A Battery Switching Station: Adoption And Environmental Impact, Buket Avci, Karan Girotra, Serguei Netessine
Research Collection Lee Kong Chian School Of Business
The transportation sector's carbon footprint and dependence on oil are of deep concern to policy makers in many countries. Use of all-electric drive trains is arguably the most realistic medium-term solution to address these concerns. However, motorist anxiety induced by an electric vehicle's limited range and high battery cost have constrained consumer adoption. A novel switching-station-based solution is touted as a promising remedy. Vehicles use standardized batteries that, when depleted, can be switched for fully charged batteries at switching stations, and motorists only pay for battery use. We build a model that highlights the key mechanisms driving adoption and use …
Combating Strategic Counterfeiters In Licit And Illicit Supply Chains, Soo-Haeng Cho, Xin Fang, Sridhar Tayur
Combating Strategic Counterfeiters In Licit And Illicit Supply Chains, Soo-Haeng Cho, Xin Fang, Sridhar Tayur
Research Collection Lee Kong Chian School Of Business
Counterfeit goods are becoming more sophisticated, from shoes to infant milk powder to aircraft parts, creating problems for consumers, firms, and governments. By comparing two types of counterfeiters—deceptive, so infiltrating a licit (but complicit) distributor, or nondeceptive in an illicit channel—we provide insights into the impact of anticounterfeiting strategies on a brand-name company, a counterfeiter, and consumers. Our analysis highlights that the effectiveness of these strategies depends critically on whether a brand-name company faces a nondeceptive or deceptive counterfeiter. For example, by improving quality, the brand-name company can improve her expected profit against a nondeceptive counterfeiter when the counterfeiter steals …
Pricing Information Goods: A Strategic Analysis Of The Selling And Pay-Per-Use Mechanisms, Sridhar Balasubramanian, Shantanu Bhattacharya, Vish V. Krishnan
Pricing Information Goods: A Strategic Analysis Of The Selling And Pay-Per-Use Mechanisms, Sridhar Balasubramanian, Shantanu Bhattacharya, Vish V. Krishnan
Research Collection Lee Kong Chian School Of Business
We analyze two pricing mechanisms for information goods. These mechanisms are selling, where up-front payment allows unrestricted use, and pay-per-use, where payments are tailored to use. We analytically model a market where consumers differ in use frequency and where use on a pay-per-use basis invokes a psychological cost associated with the well known "ticking meter" effect. We demonstrate that pay-per-use yields higher profits in a monopoly provided the associated psychological cost is low. In a duopoly, one firm uses selling and the other uses pay-per-use. Here, in contrast to the monopoly, selling yields higher profits than pay-per-use. We demonstrate that, …