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Articles 241 - 270 of 409

Full-Text Articles in Operations and Supply Chain Management

Electricity Trading And Negative Prices: Storage Vs. Disposal, Yangfang (Helen) Zhou, Alan Scheller-Wolf, Nicola Secomandi, Stephen Smith Mar 2016

Electricity Trading And Negative Prices: Storage Vs. Disposal, Yangfang (Helen) Zhou, Alan Scheller-Wolf, Nicola Secomandi, Stephen Smith

Research Collection Lee Kong Chian School Of Business

Electricity cannot yet be stored on a large scale, but technological advances leading to cheaper and more efficient industrial batteries make grid-level storage of electricity surpluses a natural choice. Because electricity prices can be negative, it is unclear how the presence of negative prices might affect the storage policy structure known to be optimal when prices are only non-negative, or even how important it is to consider negative prices when managing an industrial battery. For fast storage (a storage facility that can both be fully emptied and filled up in one decision period), we show analytically that negative prices can …


Improving The Maritime Transshipment Operations At The Noble Group, Fragkos I., Bert De Reyck Mar 2016

Improving The Maritime Transshipment Operations At The Noble Group, Fragkos I., Bert De Reyck

Research Collection Lee Kong Chian School Of Business

The Noble Group is a market-leading global supply chain manager of agricultural products, metals, and minerals, operating in more than 140 locations. This paper focuses on Noble’s maritime operations in Indonesia, where coal is transported from mines to ocean-bound vessels via roads and rivers. Currently, transportation delays are causing Noble to lose tens of millions of dollars per year in demurrage and detention penalties. Although the company can hire additional resources (such as barges and floating cranes) in advance to minimize the impact of delays, the economic benefit of doing so is often unclear. To reduce or eliminate these delays, …


Made In Singapore, Plugged Into The World, Arnoud Cyriel Leo De Meyer Mar 2016

Made In Singapore, Plugged Into The World, Arnoud Cyriel Leo De Meyer

Research Collection Lee Kong Chian School Of Business

Manufacturing in Singapore is not an outmoded sector. Instead, it is a job multiplier and can be a source of innovation as well as a vital way to plug the Republic into the global manufacturing network.


Scenario-Based Simulation Game For Hospital Beds Capacity Planning In Singapore, Cheong, Michelle L. F., Li Siong Lim Mar 2016

Scenario-Based Simulation Game For Hospital Beds Capacity Planning In Singapore, Cheong, Michelle L. F., Li Siong Lim

Research Collection School Of Computing and Information Systems

A complete learning object with scenario-based simulation game and accompanying materials, which allows self-directed learners to learn and apply the theory, concepts and calculations for capacity planning, in the hospital beds capacity planning scenario in Singapore, was designed, developed and immplemented. It guides the learners through the key considerations for capacity planning, the computation of actual capacity needed, deciding the time for capacity increments, as well as the economies and diseconomies of scale when adding capacity. All the learnings are applied in a scenario where the learners make decision on how much and when to add hospital beds to existing …


Achieving Stable And Fair Profit Allocation With Minimum Subsidy In Collaborative Logistics, Lucas Agussurja, Hoong Chuin Lau, Shih-Fen Cheng Feb 2016

Achieving Stable And Fair Profit Allocation With Minimum Subsidy In Collaborative Logistics, Lucas Agussurja, Hoong Chuin Lau, Shih-Fen Cheng

Research Collection School Of Computing and Information Systems

With the advent of e-commerce, logistics providers are faced with the challenge of handling fluctuating and sparsely distributed demand, which raises their operational costs significantly. As a result, horizontal cooperation are gaining momentum around the world. One of the major impediments, however, is the lack of stable and fair profit sharing mechanism. In this paper, we address this problem using the framework of computational cooperative games. We first present cooperative vehicle routing game as a model for collaborative logistics operations. Using the axioms of Shapley value as the conditions for fairness, we show that a stable, fair and budget balanced …


Cost-Reducing Innovation And The Role Of Patent Intermediaries In Increasing Market Efficiency, Anupam Agrawal, Shantanu Bhattacharya, Sameer Hasija Feb 2016

Cost-Reducing Innovation And The Role Of Patent Intermediaries In Increasing Market Efficiency, Anupam Agrawal, Shantanu Bhattacharya, Sameer Hasija

Research Collection Lee Kong Chian School Of Business

Patent intermediaries have gained importance as non-practicing entities in the innovation domain, buying innovations from an external provider and then licensing them to practicing firms. In this study, we analyze the competition between two identical incumbent firms and a patent intermediary for the acquisition and licensing of a cost-reducing innovation developed by an external innovator. We show that the outcome of the IP acquisition and licensing game critically depends on the degree of the cost-reducing innovation. Patent intermediaries win IP rights in patent markets if the innovation is incremental. They also win the IP rights when the innovation is moderate …


A Proactive Sampling Approach To Project Scheduling Under Uncertainty, Pradeep Varakantham, Na Fu, Hoong Chuin Lau Feb 2016

A Proactive Sampling Approach To Project Scheduling Under Uncertainty, Pradeep Varakantham, Na Fu, Hoong Chuin Lau

Research Collection School Of Computing and Information Systems

Uncertainty in activity durations is a key characteristic of many real world scheduling problems in manufacturing, logistics and project management. RCPSP/max with durational uncertainty is a general model that can be used to represent durational uncertainty in a wide variety of scheduling problems where there exist resource constraints. However, computing schedules or execution strategies for RCPSP/max with durational uncertainty is NP-hard and hence we focus on providing approximation methods in this paper. We pro- vide a principled approximation approach based on Sample Average Approximation (SAA) to compute proactive schedules for RCPSP/max with durational uncertainty. We further contribute an extension to …


Enabling Carrier Collaboration Via Order Sharing Double Auction: A Singapore Urban Logistics Perspective, Handoko Stephanus Daniel, Hoong Chuin Lau Jan 2016

Enabling Carrier Collaboration Via Order Sharing Double Auction: A Singapore Urban Logistics Perspective, Handoko Stephanus Daniel, Hoong Chuin Lau

Research Collection School Of Computing and Information Systems

A recent exploratory study on the collaborative urban logistics in Singapore suggests that cost reduction and privacy preservation are two main drivers that would motivate the participation of carriers in consolidating their last mile deliveries. With Singapore's mild restrictions on the vehicle types or the time windows for the last-mile delivery, we believe that with proper technology in place, an Urban Consolidation Center like the Tenjin Joint Distribution System in Fukuoka Japan may be implemented to achieve cost reduction with some degree of privacy preservation. Participating carriers keep their respective private orders and have the option to get their remaining …


Delayering The Global Production Network Into Congruent Subnetworks, Kasra Ferdows, Ann Vereecke, Arnoud De Meyer Jan 2016

Delayering The Global Production Network Into Congruent Subnetworks, Kasra Ferdows, Ann Vereecke, Arnoud De Meyer

Research Collection Lee Kong Chian School Of Business

The literature in operations management has not kept up with the growing complexity of and opportunities offered by global production networks. Managers need new tools to cope with this complexity. We propose one that is based on a model that delayers the global plant network into a set of subnetworks on the basis of complexity and proprietary information in the products they produce and production processes they use to produce them. This allows examining whether each subnetwork is congruent i.e., has an appropriate manufacturing mission and the competencies that it would need to carry it out. We apply this tool …


The Impact Of Budget Constraints On Flexible Vs. Dedicated Technology Choice, Onur Boyabatli, Tiecheng Leng, L. Beril Toktay Jan 2016

The Impact Of Budget Constraints On Flexible Vs. Dedicated Technology Choice, Onur Boyabatli, Tiecheng Leng, L. Beril Toktay

Research Collection Lee Kong Chian School Of Business

This paper studies the flexible versus dedicated technology choice and capacity investment decisions of a multiproduct firm under demand uncertainty in the presence of budget constraints. The firm operates under a capital budget for financing the capacity investment, and an operating budget, which is uncertain in the capacity investment stage, for financing the production. We investigate how the tightening of the capital budget and a lower financial flexibility in the production stage (the likelihood of having a sufficient operating budget) shape the optimal technology choice. We find that the dominant regime is one where dedicated technology should be adopted for …


A Quay Crane System That Self-Recovers From Random Shocks, Yun Fong Lim, Yan Zhang, Chen Wang Dec 2015

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 Dec 2015

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 …


Transforming The Traditional Indian Retailer, Ashish J. Jha, Varun Jain, Vridhi Chowdhry, Indranil Bose Nov 2015

Transforming The Traditional Indian Retailer, Ashish J. Jha, Varun Jain, Vridhi Chowdhry, Indranil Bose

Asian Management Insights

Connecting the unconnected ‘kirana’ stores through social supply chain innovation can help small Indian businesses draw more benefits from the increasing purchasing power of consumers.


A Two-Item Two-Warehouse Periodic Review Inventory Model With Transshipment, Koushik S. Ramakrishna, Sharafali Moosa, Yun Fong Lim Oct 2015

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 …


A Rolling Horizon Auction Mechanism And Virtual Pricing Of Shipping Capacity For Urban Consolidation Centers, Chen Wang, Hoong Chuin Lau, Yun Fong Lim Sep 2015

A Rolling Horizon Auction Mechanism And Virtual Pricing Of Shipping Capacity For Urban Consolidation Centers, Chen Wang, Hoong Chuin Lau, Yun Fong Lim

Research Collection School Of Computing and Information Systems

A number of cities around the world have adopted urban consolidation centers (UCCs) to address challenges of last-mile deliveries. At the UCC, goods are consolidated based on their destinations prior to their deliveries into city centers. Typically, a UCC owns a fleet of ecofriendly vehicles to carry out such deliveries. Shippers/carriers that make use of the UCC’s service hence no longer need to be restricted by timewindow and vehicle-type regulations. As a result, they retain the ability to deploy large trucks for the economies of scale from the source to the UCC which is located outside the city center. Furthermore, …


Dynamic Pricing For Hotel Rooms When Customers Request Multiple-Day Stays, Selvaprabu Nadarajah, Yun Fong Lim, Qing Ding Aug 2015

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 Jun 2015

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 May 2015

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 …


Combating Strategic Counterfeiters In Licit And Illicit Supply Chains, Soo-Haeng Cho, Xin Fang, Sridhar Tayur Apr 2015

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 …


Electric Vehicles With A Battery Switching Station: Adoption And Environmental Impact, Buket Avci, Karan Girotra, Serguei Netessine Apr 2015

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 …


Pricing Information Goods: A Strategic Analysis Of The Selling And Pay-Per-Use Mechanisms, Sridhar Balasubramanian, Shantanu Bhattacharya, Vish V. Krishnan Mar 2015

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, …


Managing Value In Supply Chains: Case Studies On The Sourcing Hub Concept, Anupam Agrawal, Arnoud De Meyer, Luk N. Van Wassenhove Dec 2014

Managing Value In Supply Chains: Case Studies On The Sourcing Hub Concept, Anupam Agrawal, Arnoud De Meyer, Luk N. Van Wassenhove

Research Collection Lee Kong Chian School Of Business

A firm’s raw material sourcing knowledge can be a strategic resource. This article explores how firms can capture and use this knowledge. It examines the sourcing experiences of four firms in four different countries in the automotive industry and identifies the raw material sourcing knowledge-related parameters. Synthesizing the findings from these case studies, it proposes the concept of the sourcing hub—a collaborative center involving the firm, its suppliers, and raw material suppliers—which can effectively capture and deploy the raw material sourcing knowledge for managing value in upstream sourcing.


A Universal Appointment Rule With Patient Classification For Service Times, No-Shows And Walk-Ins, Cayirli Tugba, Kum Khiong Yang Dec 2014

A Universal Appointment Rule With Patient Classification For Service Times, No-Shows And Walk-Ins, Cayirli Tugba, Kum Khiong Yang

Research Collection Lee Kong Chian School Of Business

This study evaluates patient classification for scheduling and sequencing appointments for patients differentiated by their mean and standard deviation of service times, no-show, and walk-in probabilities. Alternative appointment systems are tested through simulation using a universal Dome rule and some of the best traditional appointment rules in the literature. Our findings show that the universal Dome rule performs better in terms of reducing the total cost of patient’s waiting time, doctor’s idle time, and overtime, and its performance improves further with the right sequencing of patient groups. Although it is a challenge to find the best sequence, we propose a …


The Role Of Operations Executives In Strategy Making, Lieven Demeester, Arnoud De Meyer, Jovan Grahovac Nov 2014

The Role Of Operations Executives In Strategy Making, Lieven Demeester, Arnoud De Meyer, Jovan Grahovac

Research Collection Lee Kong Chian School Of Business

Creating competitive advantage based on operations capabilities is likely to require much analysis and communication within the operations function. At the same time, much communication and joint strategizing with the top and other functional executives is likely to be needed as well. Hence, given that operations executives have limited time and also have to perform many other routine tasks, they need to manage two tradeoffs. The first one is between the time spent on strategy making and the time spent on everything else. The other is within strategy making, between the time spent on "functional deliberation" within the operations function …


Stability And Endogenous Formation Of Inventory Transshipment Networks, Xin Fang, Soo-Haeng Cho Oct 2014

Stability And Endogenous Formation Of Inventory Transshipment Networks, Xin Fang, Soo-Haeng Cho

Research Collection Lee Kong Chian School Of Business

This paper studies a cooperative game of inventory transshipment among multiple firms. In this game, firms first make their inventory decisions independently and then decide collectively how to transship excess inventories to satisfy unmet demands. In modeling transshipment, we use networks of firms as the primitive, which offer a richer representation of relationships among firms by taking the coalitions used in all previous studies as special cases. For any given cooperative network, we construct a dual price allocation under which the network is stable for any residual demands and supplies in the sense that no firms find it more profitable …


Auction With Rolling Horizon For Urban Consolidation Centre, Chen Wang, Stephanus Daniel Handoko, Hoong Chuin Lau Oct 2014

Auction With Rolling Horizon For Urban Consolidation Centre, Chen Wang, Stephanus Daniel Handoko, Hoong Chuin Lau

Research Collection School Of Computing and Information Systems

A number of cities around the world have adopted urban consolidation centres (UCCs) to address some challenges of their last-mile deliveries. At the UCC, goods are consolidated based on their destinations prior to their deliveries into the city centre. In many examples, the UCC owns a fleet of eco-friendly vehicles to carry out the deliveries. A carrier/shipper who buys the UCC’s service hence no longer needs to enter the city centre in which time-window and vehicle-type restrictions may apply. As a result, it becomes possible to retain the use of large trucks for the economies of scale outside the city …


Strategic Sourcing In The Presence Of Uncertain Supply And Retail Competition, Jianqing Chen, Zhiling Guo Oct 2014

Strategic Sourcing In The Presence Of Uncertain Supply And Retail Competition, Jianqing Chen, Zhiling Guo

Research Collection School Of Computing and Information Systems

This paper develops an analytical model to evaluate competing retail firms’ sourcing strategies in the presence of supply uncertainty. We consider a common supplier that sells its uncertain supply to two downstream retail firms engaging in price competition in a horizontally differentiated product market. The focal firm has a dual-sourcing option, while the rival firm can only source from the common supplier. We assess the system-wide effects of supply uncertainty on the focal firm's incentive to pursue the dual-sourcing strategy. We find that the focal firm's dual-sourcing strategy can create a win-win situation that leads to increased retail prices and …


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 …


Chain Liability In Multitier Supply Chains? Responsibility Attributions For Unsustainable Supplier Behavior, Julia Hartmann, Sabine Benoit Jul 2014

Chain Liability In Multitier Supply Chains? Responsibility Attributions For Unsustainable Supplier Behavior, Julia Hartmann, Sabine Benoit

Research Collection Lee Kong Chian School Of Business

When it becomes publicly known that products are associated with suppliers that engage in unsustainable behaviors, consumers protest, as Nestlé, Zara, and Kimberly Clark, among others, have learned. The phenomenon by which consumers hold firms responsible for the unsustainable behavior of their upstream partners suggests the notion of “chain liability.” This study aims to generate insights into the antecedents and consequences of such consumer responsibility attributions. Using data from four vignette-based survey experiments, the authors find that the chain liability effect increases if an environmental degradation incident (1) results from supplier behavior rather than force majeure, (2) results from a …


Impact Of Component Supplier Branding On Profitability, Stefan Worm, Rajendra K. Srivastava Jul 2014

Impact Of Component Supplier Branding On Profitability, Stefan Worm, Rajendra K. Srivastava

Research Collection Lee Kong Chian School Of Business

In recent years, many business-to-business (B2B) component supplier (CS) firms have added branding to their marketing toolbox. By extending the logic of ingredient branding to B2B components, they aim to create “pull” from B2B end customers by building a strong CS brand image among their customers' customers. In contrast with the established “push” approach of building strong relationships with original equipment manufacturers (OEMs), it is unclear whether and under which conditions CS branding is a worthy strategy. On the one hand, anecdotal evidence suggests that suppliers can leverage strong CS brand image in negotiations with increasingly powerful OEMs to enhance …