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Operations and Supply Chain Management Commons™

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Research Collection Lee Kong Chian School Of Business

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Articles 151 - 180 of 276

Full-Text Articles in Operations and Supply Chain Management

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, …

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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.

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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. …

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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 …

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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 …

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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 …

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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, …

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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.

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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 …

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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 …

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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 …

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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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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 …

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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 …

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Cellular Bucket Brigades On U-Lines With Discrete Work Stations, Yun Fong Lim, Yue Wu Jul 2014

Cellular Bucket Brigades On U-Lines With Discrete Work Stations, Yun Fong Lim, Yue Wu

Research Collection Lee Kong Chian School Of Business

It is challenging to maximize and maintain productivity of a U-line with discrete stations under the impact of variability. This is because maximizing productivity requires assigning workers to suitable tasks and maintaining productivity requires sufficient flexibility in task assignment to absorb the impact of variability. To achieve this goal, we propose an operating protocol to coordinate workers on the U-line. Under the protocol the system can be configured such that its productivity is maximized. Workers are allowed to dynamically share work so that the system can effectively absorb the impact of variability. Analysis based on a deterministic model shows that …

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Modeling Queues With Simulation Versus M/M/C Models, Kum Khiong Yang, Joyce M. W. Low, Cayirli Tugba Jun 2014

Modeling Queues With Simulation Versus M/M/C Models, Kum Khiong Yang, Joyce M. W. Low, Cayirli Tugba

Research Collection Lee Kong Chian School Of Business

This paper examines the performance of single-queue service systems using a combination of computer simulation and M/M/C queuing models. Our results show that the accuracy of M/M/C models is significantly affected by the assumptions supporting the models. Managers should therefore exercise caution in using the M/M/C models for designing queuing systems when the models’ assumptions are violated. Our results show that cost-centric and servicecentric firms should manage their queues differently. While cost-centric firms should target higher arrival load, single service session, and front-loaded arrival pattern for higher efficiency, service-centric firms should strive for lower arrival load, multiple short sessions and …

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Robust Two-Stage Stochastic Linear Programs With Moment Constraints, Sarah Yini Gao, Lingchen Kong, Jie Sun Jun 2014

Robust Two-Stage Stochastic Linear Programs With Moment Constraints, Sarah Yini Gao, Lingchen Kong, Jie Sun

Research Collection Lee Kong Chian School Of Business

We consider the two-stage stochastic linear programming model, in which the recourse function is a worst case expected value over a set of probabilistic distributions. These distributions share the same first- and second-order moments. By using duality of semi-infinite programming and assuming knowledge on extreme points of the dual polyhedron of the constraints, we show that a deterministic equivalence of the two-stage problem is a second-order cone optimization problem. Numerical examples are presented to show non-conservativeness and computational advantage of this approach.

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Service Systems With Finite And Heterogeneous Customer Arrivals, Rowan Wang, Oualid Jouini, Saif Benjaafar Jun 2014

Service Systems With Finite And Heterogeneous Customer Arrivals, Rowan Wang, Oualid Jouini, Saif Benjaafar

Research Collection Lee Kong Chian School Of Business

We consider service systems with a finite number of customer arrivals, where customer interarrival times and service times are both stochastic and heterogeneous. Applications of such systems are numerous and include systems where arrivals are driven by events or service completions in serial processes as well as systems where servers are subject to learning or fatigue. Using an embedded Markov chain approach, we characterize the waiting time distribution for each customer, from which we obtain various performance measures of interest, including the expected waiting time of a specific customer, the expected waiting time of an arbitrary customer, and the expected …

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The Sourcing Hub And Upstream Supplier Networks, Anupam Agrawal, Luk N. Van Wassenhove, Arnoud De Meyer Mar 2014

The Sourcing Hub And Upstream Supplier Networks, Anupam Agrawal, Luk N. Van Wassenhove, Arnoud De Meyer

Research Collection Lee Kong Chian School Of Business

In this paper, we explore how firms can better manage their sourcing by developing relationships not only with their suppliers but also with their suppliers' suppliers. We detail an empirical case study explaining how the firm developed relationships with its suppliers and raw material suppliers via a collaborative center, the sourcing hub. We then analytically model the scenarios encountered in our empirical work and examine two facets of upstream sourcing under uncertain demand scenarios: (a) firms can supply raw material directly to their suppliers, and this may be beneficial for the firm and its suppliers; and (b) firms can bring …

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Joint Product Improvement By Client And Customer Support Center: The Role Of Gain-Share Contracts In Coordination, Shantanu Bhattacharya, Alok Gupta, Sameer Hasija Mar 2014

Joint Product Improvement By Client And Customer Support Center: The Role Of Gain-Share Contracts In Coordination, Shantanu Bhattacharya, Alok Gupta, Sameer Hasija

Research Collection Lee Kong Chian School Of Business

We study the role of different contract types in coordinating the joint product improvement effort of a client and a customer support center. The customer support center's costly efforts at joint product improvement include transcribing and analyzing customer feedback, analyzing market trends, and investing in product design. Yet this cooperative role must be adequately incentivized by the client, since it could lead to fewer service requests and hence lower revenues for the customer support center. We model this problem as a sequential game with double-sided moral hazard in a principal-agent framework (in which the client is the principal). We follow …

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Distributionally Robust Mixed Integer Linear Programs: Persistency Models With Applications, Xiaobo Li, Karthik Natarajan, Chung-Piaw Teo, Zhichao Zheng Mar 2014

Distributionally Robust Mixed Integer Linear Programs: Persistency Models With Applications, Xiaobo Li, Karthik Natarajan, Chung-Piaw Teo, Zhichao Zheng

Research Collection Lee Kong Chian School Of Business

In this paper, we review recent advances in the distributional analysis of mixed integer linear programs with random objective coefficients. Suppose that the probability distribution of the objective coefficients is incompletely specified and characterized through partial moment information. Conic programming methods have been recently used to find distributionally robust bounds for the expected optimal value of mixed integer linear programs over the set of all distributions with the given moment information. These methods also provide additional information on the probability that a binary variable attains a value of 1 in the optimal solution for 0–1 integer linear programs. This probability …

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New Bounds For The Price Of Anarchy Under Nonlinear And Asymmetric Cost, Deren Han, Jie Sun, Marcus Ang Feb 2014

New Bounds For The Price Of Anarchy Under Nonlinear And Asymmetric Cost, Deren Han, Jie Sun, Marcus Ang

Research Collection Lee Kong Chian School Of Business

We derive new bounds for the price of anarchy under nonlinear and asymmetric costs. The bounds depend on an additional factor called the intrinsic cost of the system and therefore tend to be more accurate than the current bounds that are dependent only on the degree of asymmetry of the Jacobian and the degree of the nonlinearity of the cost function.

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Comparison As Incentive: Newsvendor Decisions In A Social Context, Buket Avci, Zeina Loutfi, Jurgen Mihm, Elena Belavina, Steffen Keck Feb 2014

Comparison As Incentive: Newsvendor Decisions In A Social Context, Buket Avci, Zeina Loutfi, Jurgen Mihm, Elena Belavina, Steffen Keck

Research Collection Lee Kong Chian School Of Business

Explicit formal mechanisms dominate the discussion about incentives in Operations Management, yet many other mechanisms exist. Social comparison between peers may provide strong implicit incentives for individuals. Social comparison arises naturally in all social settings and may thus be unintended; however, many companies deliberately use it to motivate employees. In this study, we model a social context in which purchasers evaluate their performance relative to their peers; a feeling of inferiority results in a negative contribution to utility, whereas a feeling of superiority results in a positive contribution. We find that social comparison induces characteristic deviations from the newsvendor optimum …

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