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Full-Text Articles in Business
Decision Support For Lead Time And Demand Variability Reduction, Xin Fang, Cheng Zhang, David J. Robb, Joseph D. Blackburn
Decision Support For Lead Time And Demand Variability Reduction, Xin Fang, Cheng Zhang, David J. Robb, Joseph D. Blackburn
Research Collection Lee Kong Chian School Of Business
Companies undertaking operations improvement in supply chains face many alternatives. This work seeks to assist practitioners to prioritize improvement actions by developing analytical expressions for the marginal values of three parameters – (i) lead time mean, (ii) lead time variance, and (iii) demand variance – which measure the marginal cost of an incremental change in a parameter. The relative effectiveness of reducing lead time mean versus lead time variance is captured by the ratio of the marginal value of lead time mean to that of lead time variance. We find that this ratio strongly depends on whether the lead time …
Optimal Investment Under Operational Flexibility, Risk Aversion, And Uncertainty, Michail Chronopoulos, Bert De Reyck, Afzal Siddiqui
Optimal Investment Under Operational Flexibility, Risk Aversion, And Uncertainty, Michail Chronopoulos, Bert De Reyck, Afzal Siddiqui
Research Collection Lee Kong Chian School Of Business
Traditional real options analysis addresses the problem of investment under uncertainty assuming a risk-neutral decision maker and complete markets. In reality, however, decision makers are often risk averse and markets are incomplete. We confirm that risk aversion lowers the probability of investment and demonstrate how this effect can be mitigated by incorporating operational flexibility in the form of embedded suspension and resumption options. Although such options facilitate investment, we find that the likelihood of investing is still lower compared to the risk-neutral case. Risk aversion also increases the likelihood that the project will be abandoned, although this effect is less …
Towards A Single European Sky, Yael Gruksha-Cockayne, Bert De Reyck
Towards A Single European Sky, Yael Gruksha-Cockayne, Bert De Reyck
Research Collection Lee Kong Chian School Of Business
We describe an integrated decision-making framework and model that we developed to aid EUROCONTROL, the European air traffic management organization, in its vital role of constructing a single unified European sky. Combining multicriteria decision analysis with large-scale optimization methods, such as integer programming and column generation using branch and price, our model facilitates the process by which the numerous European aviation stakeholders evaluate and select technological enhancements to the European air traffic management system. We consider multiple objectives and potential disagreements by stakeholders regarding the impact of proposed system enhancements and allow for different priorities for each key performance area. …
An Integrated Decision– Making Approach For Improving European Air Traffic Management, Yael Gruksha-Cockayne, Bert De Reyck, Zeger Degraeve
An Integrated Decision– Making Approach For Improving European Air Traffic Management, Yael Gruksha-Cockayne, Bert De Reyck, Zeger Degraeve
Research Collection Lee Kong Chian School Of Business
We develop a multistakeholder, multicriteria decision-making framework for Eurocontrol, the European air traffic management organization, for evaluating and selecting operational improvements to the air traffic management system. The selected set of improvements will form the master plan of the Single European Sky initiative for harmonizing air traffic, in an effort to cope with the forecasted increase in air traffic, while maintaining safety, protecting the environment, and improving predictability and efficiency. The challenge is to select the set of enhancements such that the required performance targets are met and all key stakeholders are committed to the decisions. In this paper, we …