Business Commons^™

Capacity-Driven Pricing Mechanism In Special Service Industries, Lijian Chen, Suraj M. Alexander

MIS/OM/DS Faculty Publications

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 …

Volume And Cost Implications Of Product Portfolio Complexity, Mark A. Jacobs

MIS/OM/DS Faculty Publications

Business leaders are concerned about the impacts of increasing levels of product portfolio complexity since many sense that complexity related costs such as order management, procurement, and inventory threaten to undermine operational efficiencies and consume profits. Even so, managers do not fully understand the extent and breadth of the impacts of product portfolio complexity. A more complete understanding of the operational effects of product portfolio complexity is lacking partially because researchers have not yet offered a robust theoretical perspective or studied it in a focused controlled way; until now. Herein, measures of product portfolio complexity are developed and related to …

Product Complexity: A Definition And Impacts On Operations, Mark A. Jacobs

MIS/OM/DS Faculty Publications

The difficulty for organizations arises because neither complexity nor its impacts on performance are well understood (Fisher & Ittner, 1999b). The mechanisms through which it affects cost, quality, delivery, and flexibility need to be explained (Ramdas, 2003). However, this cannot happen until complexity can be explained theoretically. But, to build theory there must first be a common understanding about the construct of interest (Wacker, 2004). Only then can researchers operationalize it and search for meaningful relationships. In light of this, I develop a definition of complexity below. A sampling of the operations management literature is then presented within the context …

Cio Lateral Influence Behaviors: Gaining Peers' Commitment To Strategic Information Systems, Harvey Enns, Sid L. Huff, Christopher A. Higgins

MIS/OM/DS Faculty Publications

In order to develop and bring to fruition strategic information systems (SIS) projects, chief information officers (CIOs) must be able to effectively influence their peers. This research examines the relationship between CIO influence behaviors and the successfulness of influence outcomes, utilizing a revised model initially developed by Yukl (1994). Focused interviews were first conducted with CIOs and their peers to gain insights into the phenomenon. A survey instrument was then developed and distributed to a sample of CIO and peer executive pairs to gather data with which to test a research model. A total of 69 pairs of surveys were …

Pricing And Product Mix Optimization In Freight Transportation, Michael F. Gorman

MIS/OM/DS Faculty Publications

We propose improved pricing and market mix can improve the profitability of the freight transportation provider through the reduction of equipment repositioning costs. We hypothesize that because of complexities surrounding pricing and equipment repositioning costing, existing pricing strategies in freight transportation fail to fully consider these costs. We test this hypothesis in an applied setting in which Monte Carlo simulation captures the stochasticity of market conditions inherent in the problem. We use a heuristic to improve the nondifferentiable, discontinuous objective function.

Our results from test cases show with high confidence that current prices are not optimal, as indicated by a …

Enhancing Manufacturing Planning And Control Systems Through Artificial Intelligence Techniques, Ronald S. Dattero, John J. Kanet, Edna M. White

MIS/OM/DS Faculty Publications

Manufacturing planning and control systems are currently dominated by systems based upon Material Requirements Planning (MRP). MRP systems have a number of fundamental flaws. A potential alternative to MRP systems is suggested after research into the economic batch scheduling problem.

Based on the ideas of economic batch scheduling, and enhanced through artificial intelligence techniques, an alternative approach to manufacturing planning and control is developed. A framework for future research on this alternative to MRP is presented.