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Full-Text Articles in Business
Capacity Planning With Financial And Operational Hedging In Low‐Cost Countries, Lijian Chen, Shanling Li, Letian Wang
Capacity Planning With Financial And Operational Hedging In Low‐Cost Countries, Lijian Chen, Shanling Li, Letian Wang
Lance (Lijian) Chen
The authors of this paper outline a capacity planning problem in which a risk-averse firm reserves capacities with potential suppliers that are located in multiple low-cost countries. While demand is uncertain, the firm also faces multi-country foreign currency exposures. This study develops a mean-variance model that maximizes the firm’s optimal utility and derives optimal utility and optimal decisions in capacity and financial hedging size. The authors show that when demand and exchange rate risks are perfectly correlated, a risk- averse firm, by using financial hedging, will achieve the same optimal utility as a risk-neutral firm. In this paper as well, …
A Simulation-Based Approach To Solve A Specific Type Of Chance Constrained Optimization, Lijian Chan
A Simulation-Based Approach To Solve A Specific Type Of Chance Constrained Optimization, Lijian Chan
Lance (Lijian) Chen
We solve the chance constrained optimization with convex feasible set through approximating the chance constraint by another convex smooth function. The approximation is based on the numerical properties of the Bernstein polynomial that is capable of effectively controlling the approximation error for both function value and gradient. Thus, we adopt a first-order algorithm to reach a satisfactory solution which is expected to be optimal. When the explicit expression of joint distribution is not available, we then use Monte Carlo approach to numerically evaluate the chance constraint to obtain an optimal solution by probability. Numerical results for known problem instances are …
Re-Solving Stochastic Programming Models For Airline Revenue Management, Lijian Chen, Tito Homem-De-Mello
Re-Solving Stochastic Programming Models For Airline Revenue Management, Lijian Chen, Tito Homem-De-Mello
Lance (Lijian) Chen
We study some mathematical programming formulations for the origin-destination model in airline revenue management. In particular, we focus on the traditional probabilistic model proposed in the literature. The approach we study consists of solving a sequence of two-stage stochastic programs with simple recourse, which can be viewed as an approximation to a multi-stage stochastic programming formulation to the seat allocation problem. Our theoretical results show that the proposed approximation is robust, in the sense that solving more successive two-stage programs can never worsen the expected revenue obtained with the corresponding allocation policy. Although intuitive, such a property is known not …
Ancillary Service Capacity Optimization For Both Electric Power Suppliers And Independent System Operator, Lijian Chen, Dengfeng Sun, Guang Li
Ancillary Service Capacity Optimization For Both Electric Power Suppliers And Independent System Operator, Lijian Chen, Dengfeng Sun, Guang Li
Lance (Lijian) Chen
Ancillary Services (AS) in electric power industry are critical to support the transmission of energy from generators to load demands while maintaining reliable operation of transmission systems in accordance with good utility practice. The ancillary services are procured by the independent system operator (ISO) through a process called the market clearing process which can be modeled by the partial equilibrium from the ends of ISO. There are two capacity optimization problems for both Market participants (MP) and Independent System Operator (ISO). For a market participant, the firm needs to determine the capacity allocation plan for various AS to pursue operating …
Capacity-Driven Pricing Mechanism In Special Service Industries, Lijian Chen, Suraj M. Alexander
Capacity-Driven Pricing Mechanism In Special Service Industries, Lijian Chen, Suraj M. Alexander
Lance (Lijian) Chen
We propose a capacity driven pricing mechanism for several service industries in which the customer behavior, the price demand relationship, and the competition are significantly distinct from other industries. According our observation, we found that the price demand relationship in these industries cannot be modeled by fitted curves; the customers would neither plan in advance nor purchase the service strategically; and the competition would be largely local. We analyze both risk neutral and risk aversion pricing models and conclude the proposed capacity driven model would be the optimal solution under mild assumptions. The resulting pricing mechanism has been implemented at …
Collaborative Standards, Voluntary Codes And Industry Self-Regulation, Lawrence J. Lad, Craig B. Caldwell
Collaborative Standards, Voluntary Codes And Industry Self-Regulation, Lawrence J. Lad, Craig B. Caldwell
Craig B. Caldwell
In a complex, global economy, firms seek a range of mechanisms for addressing regulatory and social movement pressures. This requires an evolution beyond our current models of response to regulation and control. This paper offers ideas on collaborative control and industry self-regulation as alternative mechanisms for addressing regulatory complexity. It explores a range of self-regulatory practices worldwide, proposes a framework for examining its use, potential and limits, and discusses the critical role of third-party organisations in the process.
Can Leaders Step Outside Of The Gender Box? An Examination Of Leadership And Gender Role Stereotypes, Margaret Y. Padgett, Craig B. Caldwell, Andrew Embry
Can Leaders Step Outside Of The Gender Box? An Examination Of Leadership And Gender Role Stereotypes, Margaret Y. Padgett, Craig B. Caldwell, Andrew Embry
Craig B. Caldwell
This study examined gender stereotypes for leaders using a more indirect method than is typical in stereotype research. Rather than reveal the leader's gender, this study used vignettes in which the leader's gender was unknown. Consistent with their hypothesis, the authors found that participants were more likely to infer a male (female) gender identity than a female (male) gender identity when presented with a leader using a masculine (feminine) style. They also hypothesized that a leader using a gender-consistent leadership style would be viewed more positively than a leader using a gender-inconsistent style. Contrary to this hypothesis, results revealed that …