Technical Sessions – Monday July 11

TD-04 IFORS 2011 - Melbourne
2 - A Multi-objective Genetic Algorithm to Determine Accrue
Provision Rates Achieving Smooth and Low Inventory
Write-downs with Real Settings in a Semiconductor
Memory Maker
Jei-Zheng Wu, Business Administration, Soochow University, 56
Kueiyang St., Sec. 1„ 100, Taipei, Taiwan, jzwu@scu.edu.tw
Most of semiconductor memory manufacturers have suffered from high inventory
write-downs and subsequent negative impacts on stock market performance.
This study aims to develop a multi-objective genetic algorithm to determine
accrue provision rates that can generate a set of nondominated solutions
of low inventory write-downs and low write-downs variation. A case study was
conducted for validation. The proposed algorithm can help top managers compare
and determine a number of write-down strategies by an interactive process
to extract their preferences over write-downs levels and stability.
3 - Two-Warehouse Supply Chain Model with Power-form
Stock Dependent Demand
Chaman Singh, Mathematics, Acharya Narendra Dev College,
(University of Delhi), Chaman Singh, Dept. of Mathematics„
Acharya Narendra Dev College, (Unviersity of Delhi),
Govindpuri, KalkaJi, 110019, New Delhi, Delhi, India,
chamansingh07@gmail.com, Shivraj Singh
In realistic world, there usually exist various factors that induce the retailer to
order more items than the capacity of his Own-warehouse (OW). Therefore,
for the retailer, it is very practical to determine whether or not to rent other
warehouse and what order policy to adopt if other warehouse is indeed needed.
For the stock dependent demand pattern, retailer has his own warehouse to display
the items and may hire another warehouse of the larger capacity, treated as
rented warehouse (RW) to storage the excess inventory. In this paper, a supply
chain model with power form stock-dependent demand rate is developed. The
demand rate is assumed to be a polynomial form of current inventory level in
Own-warehouse. It is considered that the deterioration rate per unit items in
the RW and OW are different due to different preservation environments as a
consequence the holding costs per unit item in RW and OW are also different.
Proposed model is illustrated with some numerical example along with some
sensitivity analysis of parameters.
� TD-04
Tuesday, 17:00-18:30
Meeting Room 103
Revenue Management 1
Stream: Revenue Management and Dynamic Pricing
Invited session
Chair: Joern Meissner, Kuehne Logistics University, Hamburg,
Germany, joe@meiss.com
1 - The Use of Design of Experiment in Strategic Decision
Making
Emre Alptekin, Industrial Engineering Dept., Galatasaray
University, Turkey, ealptekin@gsu.edu.tr, Gülfem Isiklar
Alptekin
In todays’ the economic world, the capacity and the existence of the companies
become directly related to their market value. It is essential that the company
or the organization addresses to its current and prospective customers; and the
best way of carrying out this is marketing. As marketing become more and
more important, a need for making strategic decisions in this field emerged. In
this work, we have analyzed which factors influence the market share value of
a globally known soft drink company.
2 - Challenges in Air Cargo Revenue Management
Joern Meissner, Kuehne Logistics University, Hamburg,
Germany, joe@meiss.com, Kevin Glazebrook, Emily Cookson
The Air Cargo industry faces some unique challenges: Highly volatile demand,
weight/volume uncertainty even for pre-booked allotments and very
short booking cycles are some of the features. We propose a new dynamic
programming formulation that an air cargo company can use to maximize its
expected profit. Our formulation differs from previous ones in that capacity
and demand uncertainty is incorporated into the model using probability distributions.
We present first numerical results from an industry project with the
cargo division of a major airline.
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3 - Risk Minimizing Strategies for RM Problems with Target
Values
Joern Meissner, Kuehne Logistics University, Hamburg,
Germany, joe@meiss.com, Matthias Koenig
We consider a risk-averse decision maker in the setting of a single-leg dynamic
revenue management problem with revenue controlled by limiting capacity for
a fixed set of prices. Instead of focussing on maximizing the expected revenue,
the decision maker has the objective of minimizing the risk of failing to
achieve a given target revenue. Interpreting the problem in the framework of
finite Markov decision processes, we augment the state space and change the
objective to the probability of failing a specified target revenue. We present a
numerical study and discuss advantages and limitations.
� TD-05
Tuesday, 17:00-18:30
Meeting Room 104
Marketing/Operations IV
Stream: OR and Marketing
Invited session
Chair: Wei Shi Lim, NUS Business School, 12345, Singapore,
Singapore, weishi@nus.edu.sg
1 - Optimal Dynamic Pricing Strategies in the Presence
of Speculators and Forward Looking Consumers: Are
Speculators Friends or Foes?
Wei Shi Lim, NUS Business School, 12345, Singapore,
Singapore, weishi@nus.edu.sg, Christopher Tang
In a market with speculators whose sole objective is to arbitrage on the anticipated
price differential to make a profit, we identify conditions under which
the firm should deliberately price lower in Period 1 by selling to speculators so
as to increase the number of arrivals in Period 2 in a downward market. We
fruther show that speculators can help the firm to "price into the future’ in a
rising market if increased sales in Period 1 can boost the potential demand in
Period 2. Finally, we examine whether a third-party should and could deter
speculators’ entry by imposing an entry barrier.
2 - Information Provision and Price Competition in a
Duopoly Setting
Chung-Chi Hsieh, Department of Industrial and Information
Management, National Cheng Kung University, 1, University
Road, 701, Tainan, Taiwan, jcchsieh@mail.ncku.edu.tw, Wei Shi
Lim
This paper studies the retailers’ information provision and pricing strategies in
a duopoly setting in the presence of heterogeneous consumers. By characterizing
heterogeneity of consumers in terms of information possessed and loyalty,
we develop an approximate yet analytical model of the retailers’ equilibrium
decisions. We then analyze how consumer heterogeneity and search cost shape
the retailers’ equilibrium decisions and profits.
3 - Optimal Pricing and Inventory Strategies With Stochastic
Demands and The Option of Overselling
Wee Meng Yeo, Singapore Institute of Manufacturing
Technology, 71 Nanyang Drive, 638075, Singapore,
yeowm3@singnet.com.sg, Wei Shi Lim
We examine a two-period model in a duopoly where each seller may also adopt
the overselling strategy, where goods sold earlier may be resold to late consumers
as long as an appropriate compensation is provided to the early consumers.
This work extends the majority of overbooking literature that do not
consider price discrimination, much less pricing strategies. We provide exact
conditions under which overselling and conventional selling are equilibrium
selling strategies.
4 - Optimal Pricing of Customized Products
Brigitte Werners, Management and Economics, Ruhr-University
Bochum, Universitätsstr, 44780, Bochum, Germany, or@rub.de,
Niels Becker