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Operations and Supply Chain Management

Singapore Management University

Research Collection Lee Kong Chian School Of Business

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Full-Text Articles in Finance and Financial Management

Bayesian Optimization With Switching Cost: Regret Analysis And Lookahead Variants, Peng Liu, Haowei Wang, Wei Qiyu Aug 2023

Bayesian Optimization With Switching Cost: Regret Analysis And Lookahead Variants, Peng Liu, Haowei Wang, Wei Qiyu

Research Collection Lee Kong Chian School Of Business

Bayesian Optimization (BO) has recently received increasing attention due to its efficiency in optimizing expensive-to-evaluate functions. For some practical problems, it is essential to consider the path-dependent switching cost between consecutive sampling locations given a total traveling budget. For example, when using a drone to locate cracks in a building wall or search for lost survivors in the wild, the search path needs to be efficiently planned given the limited battery power of the drone. Tackling such problems requires a careful cost-benefit analysis of candidate locations and balancing exploration and exploitation. In this work, we formulate such a problem as …

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The Downstream Impact Of Upstream Tariffs: Evidence From Investment Decisions In Supply Chains, Thorsten Martin, Clemens A. Otto Jun 2023

The Downstream Impact Of Upstream Tariffs: Evidence From Investment Decisions In Supply Chains, Thorsten Martin, Clemens A. Otto

Research Collection Lee Kong Chian School Of Business

We study how US manufacturing firms' investment responds to tariff reductions in supplier industries. Our estimates, based on tariff reductions following multinational trade agreements, suggest that a hypothetical 10% reduction of all upstream tariffs would increase downstream investment by 4% to 6%. This estimate is not explained by decreasing uncertainty and stems from tariff reductions for homogeneous and low-R\&D inputs, consistent with the investment response resulting from cost reductions rather than superior foreign technology embodied in imported inputs. Evidence from an instrumental variable estimation using the sudden increase in Chinese import penetration suggests that import competition also increases downstream investment.

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Riding Off Into The Sunset: Dual-Class Structure In The Age Of Unicorns Going Public, Hao Liang, Junho Park, Wei Zhang Oct 2022

Riding Off Into The Sunset: Dual-Class Structure In The Age Of Unicorns Going Public, Hao Liang, Junho Park, Wei Zhang

Research Collection Lee Kong Chian School Of Business

The increasing adoption of dual-class shares (DCS)—an ownership structure that gives corporate insiders greater voting power than other shareholders—among newly listed companies has raisedsignificant governance concerns. We investigate the decision to adopt the DCS structure and itsvalue implications in the recent U.S. IPOs. Using founder cultural traits and Silicon Valley lawfirms as instrumental variables, we find significant post-IPO outperformance by firms adopting DCSwith a sunset clause, especially incapacity-based sunset which stipulates that the DCS will ceaseafter founders’ death, incapacitation or departure, compared to non-DCS firms and DCS firms without sunsets. This outperformance is more pronounced for high-tech firms, after Google’s …

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Endogeneity Of Commodity Price In Freight Cost Models, Kian Guan Lim Jun 2022

Endogeneity Of Commodity Price In Freight Cost Models, Kian Guan Lim

Research Collection Lee Kong Chian School Of Business

In this paper, we answer a novel question on how the value of goods carried can affect the freight cost. We focus on the issue based on a more specialized freight market involving transport of seaborne iron ore from mining ports to Qingdao in China during the period 2014 to 2019. We construct simultaneous systems of demand–supply equations on both the iron ore market and the freight market. In the models, we explain how endogeneity of iron ore as a regressor can arise due to the nexus between the two markets, and that the freight demand is largely a derived …

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Limousine Service Management: Capacity Planning With Predictive Analytics And Optimization, Peng Liu, Ying Chen, Chung-Piaw Teo Jul 2021

Limousine Service Management: Capacity Planning With Predictive Analytics And Optimization, Peng Liu, Ying Chen, Chung-Piaw Teo

Research Collection Lee Kong Chian School Of Business

The limousine service in luxury hotels is an integral component of the whole customer journey in the hospitality industry. One of the largest hotels in Singapore manages a fleet of both in-house and outsourced vehicles around the clock, serving 9,000 trips per month on average. The need for vehicles may scale up rapidly, especially during special events and festive periods in the country. The excess demand is met by having additional outsourced vehicles on standby, incurring millions of dollars of additional expenses per year for the hotel. Determining the required number of limousines by hour of the day is a …

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Designing Efficient Infrastructural Investment And Asset Transfer Mechanisms In Humanitarian Supply Chains, Shantanu Bhattacharya, Sameer Hasija, Luk N. Van Wassenhove Sep 2014

Designing Efficient Infrastructural Investment And Asset Transfer Mechanisms In Humanitarian Supply Chains, Shantanu Bhattacharya, Sameer Hasija, Luk N. Van Wassenhove

Research Collection Lee Kong Chian School Of Business

We analyze the efficacy of different asset transfer mechanisms and provide policy recommendations for the design of humanitarian supply chains. As a part of their preparedness effort, humanitarian organizations often make decisions on resource investments ex ante because doing so allows for rapid response if an adverse event occurs. However, programs typically operate under funding constraints and donor earmarks with autonomous decision-making authority resting with the local entities, which makes the design of efficient humanitarian supply chains a challenging problem. We formulate this problem in an agency setting with two independent aid programs, where different asset transfer mechanisms are considered …

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Stochastic Capacity Investment And Flexible Vs. Dedicated Technology Choice In Imperfect Capital Markets, Onur Boyabatli, L. Bertil Toktay Dec 2011

Stochastic Capacity Investment And Flexible Vs. Dedicated Technology Choice In Imperfect Capital Markets, Onur Boyabatli, L. Bertil Toktay

Research Collection Lee Kong Chian School Of Business

This paper analyzes the impact of endogenous credit terms under capital market imperfections in a capacity investment setting. We model a monopolist firm that decides on its technology choice (flexible versus dedicated) and capacity level under demand uncertainty. Differing from the majority of the stochastic capacity investment literature, we assume that the firm is budget constrained and can relax its budget constraint by borrowing from a creditor. The creditor offers technology-specific loan contracts to the firm, after which the firm makes its technology choice and subsequent decisions. Capital market imperfections impose financing frictions on the firm. Our analysis contributes to …

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Technical Appendix To "Stochastic Capacity Investment And Flexible Vs. Dedicated Technology Choice In Imperfect Capital Markets", Onur Boyabatli May 2011

Technical Appendix To "Stochastic Capacity Investment And Flexible Vs. Dedicated Technology Choice In Imperfect Capital Markets", Onur Boyabatli

Research Collection Lee Kong Chian School Of Business

Technical appendix with proofs for the technical statements in the article: Stochastic capacity investment and flexible vs. dedicated technology choice in imperfect capital markets. (2011). Management Science, 57 (12), 2163 - 2179. https://doi.org/10.1287/mnsc.1110.1395

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