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Fixing Inventory Inaccuracies at Scale Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-03-14 Vivek F. Farias, Andrew A. Li, Tianyi Peng
Problem definition: Inaccurate records of inventory occur frequently and, by some measures, cost retailers approximately 4% in annual sales. Detecting inventory inaccuracies manually is cost-prohibitive, and existing algorithmic solutions rely almost exclusively on learning from longitudinal data, which is insufficient in the dynamic environment induced by modern retail operations. Instead, we propose
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Service Quality Implications of Long Periods of Consecutive Working Days: An Empirical Study of Neonatal Intensive Care Nursing Teams Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-03-12 F. Miedaner, L. Kuntz, K. Eilermann, B. Roth, S. Scholtes
Problem definition: We examine the effects of prolonged consecutive working days without breaks on care quality and explore its association with daily staffing levels in neonatal intensive care nursing teams. Academic/practical relevance: Healthcare organizations typically base staffing guidelines on safe daily metrics like nurse-to-patient ratios. However, in response to unforeseen demand spikes or
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Optimal Consolidation of Polling Locations Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-03-07 Adam P. Schmidt, Duncan Buell, Laura A. Albert
Problem definition: Many logistical and financial challenges of facilitating an election lead election officials to consolidate polling locations. However, determining when it is appropriate to consolidate polling locations and how to consolidate polling locations, if necessary, is a difficult and high-stakes decision that influences voter participation. Methodology/results: We formalize the set of
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Improving Farmers’ Income on Online Agri-Platforms: Evidence from the Field Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-03-06 Retsef Levi, Manoj Rajan, Somya Singhvi, Yanchong Zheng
Problem definition: To improve the welfare of smallholder farmers, multiple countries (e.g., Ethiopia and India) have launched online agri-platforms to transform traditional markets. However, there is still mixed evidence regarding the impact of these platforms and, more generally, how they can be leveraged to enable more efficient agricultural supply chains and markets. This paper describes work conducted
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Retail Category Management with Slotting Fees Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-03-06 Yasin Alan, Mümin Kurtuluş, Alper Nakkas
Problem definition: Slotting fees are lump-sum payments retailers demand from manufacturers to include manufacturers’ products in their assortments. Although retailers regard slotting fees as part of doing business, some manufacturers claim that slotting fees limit their ability to compete on a level playing field with other manufacturers. Considering these conflicting views, we study the role of manufacturer
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Frontiers in Operations: The Confidence Trap in Operations Management Practices: Anatomy of Man-Made Disasters Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-03-01 Akhil Bhardwaj, Henk Akkermans
Problem definition: Reducing the likelihood of man-made disasters that cause harm to life, property, and the environment is a key societal goal. To that end, regulatory agencies are responsible for ensuring man-made disasters do not occur. In practice, to accomplish this task, regulators have to rely on and cooperate with operators. However, how much cooperation is optimal? In this study, we explore
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Aggregating Distributed Energy Resources: Efficiency and Market Power Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-03-01 Zuguang Gao, Khaled Alshehri, John R. Birge
Problem definition: The rapid expansion of distributed energy resources (DERs) is one of the most significant changes to electricity systems around the world. Examples of DERs include solar panels, electric storage, thermal storage, and combined heat and power plants. Because of the small supply capacities of these DERs, it is impractical for them to participate directly in the wholesale electricity
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Frontiers in Operations: Does Physician’s Choice of When to Perform EHR Tasks Influence Total EHR Workload? Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-29 Umit Celik, Sandeep Rath, Saravanan Kesavan, Bradley R. Staats
Problem definition: Physicians spend more than five hours a day working on Electronic Health Record (EHR) systems and more than an hour doing EHR tasks after the end of the workday. Numerous studies have identified the detrimental effects of excessive EHR use and after-hours work, including physician burnout, physician attrition, and appointment delays. However, EHR time is not purely an exogenous
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Inventory Management with Advance Booking Information: The Case of Surgical Supplies and Elective Surgeries Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-29 Jacky Chan, Berk Görgülü, Vahid Sarhangian
Problem definition: Medical operations require a large volume and variety of consumable supplies that are kept in hospital inventory and replenished on a regular basis. Stringent requirements on the availability of these supplies, together with high variability in their daily usage, contribute to the high inventory costs of the surgical departments in hospitals. We investigate the value of utilizing
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Frontiers in Operations: Battery as a Service: Flexible Electric Vehicle Battery Leasing Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-27 Lingling Shi, Bin Hu
Problem definition: The electric vehicle (EV) manufacturer NIO adopts a swappable-battery design and a battery-leasing business model known as battery as a service (BaaS). It recently introduced flexible battery leasing, which allows customers to temporarily up-/downgrade their primary leased batteries based on the needs for range. We investigate whether this business model innovation is viable, namely
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Condition-Based Production for Stochastically Deteriorating Systems: Optimal Policies and Learning Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-27 Collin Drent, Melvin Drent, Joachim Arts
Problem definition: Production systems deteriorate stochastically due to use and may eventually break down, resulting in high maintenance costs at scheduled maintenance moments. This deterioration behavior is affected by the system’s production rate. Although producing at a higher rate generates more revenue, the system may also deteriorate faster. Production should thus be controlled dynamically to
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Evaluation of a Split Flow Model for the Emergency Department Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-27 Juan Camilo David Gomez, Amy L. Cochran, Brian W. Patterson, Gabriel Zayas-Cabán
Problem definition: Split flow models, in which a physician rather than a nurse performs triage, are increasingly being used in hospital emergency departments (EDs) to improve patient flow. Before deciding whether such interventions should be adopted, it is important to understand how split flows causally impact patient flow and outcomes. Methodology/results: We employ causal inference methodology
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Market Thickness in Online Food Delivery Platforms: The Impact of Food Processing Times Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-27 Yanlu Zhao, Felix Papier, Chung-Piaw Teo
Problem definition: Online food delivery (OFD) platforms have witnessed rapid global expansion, partly driven by shifts in consumer behavior during the COVID-19 pandemic. These platforms enable customers to order food conveniently from a diverse array of restaurants through their mobile phones. A core functionality of these platforms is the algorithmic matching of drivers to food orders, which is the
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Anticipated Wait and Its Effects on Consumer Choice, Pricing, and Assortment Management Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-26 Ruxian Wang, Chenxu Ke, Zifeng Zhao
Problem definition: We investigate the effects of waiting time, mainly due to production in a make-to-batch-order (MTBO) system, on consumer choice behavior, pricing, assortment, and model estimation. In an MTBO system, the seller/manufacturer first collects orders placed within a certain period of time into a batch and then starts the production process. After the production of all orders in a batch
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When Yield Is Not the Only Supply Uncertainty: Newsvendor Model of a Trade Agent Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-23 Özden Engin Çakıcı, Itir Karaesmen
Problem definition: We study the procurement decisions of a trade agent: The agent chooses a bid (unit price to pay) to procure the goods available from seller(s). If the agent wins the bid, the supply is used to meet the buyer’s demand. Methodology/results: The trade agent’s single-period, single-product problem is a new type of newsvendor problem. We analyze the agent’s optimal bid for a seller with
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Fast or Slow? Competing on Publication Frequency Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-21 Lin Chen, Guillaume Roels
Problem definition: For many information goods, longer publication cycles (or batches of information) are more economical, but often result in less timely—and, therefore, less valuable—information. Whereas the digitalization of publication processes has reduced fixed publication costs, making shorter publication cycles more economically viable, competing firms have adapted their publication cycles
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Supply Chain Contracts in the Small Data Regime Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-16 Xuejun Zhao, William B. Haskell, Guodong Yu
Problem definition: We study supply chain contract design under uncertainty. In this problem, the retailer has full information about the demand distribution, whereas the supplier only has partial information drawn from historical demand realizations and contract terms. The supplier wants to optimize the contract terms, but she only has limited data on the true demand distribution. Methodology/results:
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Recharging Retail: Estimating Consumer Demand Spillovers from Electric Vehicle Charging Stations Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-12 Yash Babar, Gordon Burtch
Problem definition: We estimate the impact of electric vehicle (EV) charging stations on volumes of consumer foot traffic received by nearby retail establishments. We also explore the conditions under which any effects manifest. Methodology/results: We use a differences-in-differences design, exploiting the staggered introduction of Tesla Supercharger stations across the United States. We combine data
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Reliable Frequency Regulation Through Vehicle-to-Grid: Encoding Legislation with Robust Constraints Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-02-09 Dirk Lauinger, François Vuille, Daniel Kuhn
Problem definition: Vehicle-to-grid increases the low utilization rate of privately owned electric vehicles by making their batteries available to electricity grids. We formulate a robust optimization problem that maximizes a vehicle owner’s expected profit from selling primary frequency regulation to the grid and guarantees that market commitments are met at all times for all frequency deviation trajectories
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Paid Priority in Service Systems: Theory and Experiments Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-01-19 Andrew E. Frazelle, Elena Katok
Problem definition: Motivated by the prevalence of paid priority programs in practice, we study a service provider operating a system in which customers have random waiting costs and choose between two queues: regular (no cost) or priority (for a fee). We also consider a mechanism by which the provider redistributes a portion of priority revenue to compensate regular-queue customers for their longer
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Product Development in Crowdfunding: Theoretical and Empirical Analysis Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-01-17 Sıdıka Tunç Candoğan, Philipp B. Cornelius, Bilal Gokpinar, Ersin Körpeoğlu, Christopher S. Tang
Problem definition: Crowdfunding goes beyond raising funds. Entrepreneurs often use crowdfunding to solicit feedback from customers to improve their products and may therefore prefer to launch their crowdfunding campaigns using basic versions of their products with fewer features. However, customers may not be persuaded by a campaign if the product appears to be underdeveloped. In view of this tradeoff
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What Causes Delays in Admission to Rehabilitation Care? A Structural Estimation Approach Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-01-09 Jing Dong, Berk Görgülü, Vahid Sarhangian
Problem definition: Delays in admission to rehabilitation care can adversely impact patient outcomes. In addition, delayed patients keep occupying their acute care beds, making them unavailable for incoming patients. Admission delays are mainly caused by a lack of rehabilitation bed capacity and the time required to plan for rehabilitation activities, which we refer to as processing times. Because
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To Earmark or to Nonearmark? The Role of Control, Transparency, and Warm-Glow Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2024-01-05 Özalp Özer, Gloria Urrea, Sebastián Villa
Problem definition: Charities face tension when deciding whether to earmark donations, that is, allow donors to restrict the use of their donations for a specific purpose. Research shows that earmarking decreases operational performance because it limits charities’ flexibility to use donations. However, there is also a common belief that earmarking increases donations. Earmarking is assumed to increase
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Decarbonizing OCP Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-12-28 Dimitris Bertsimas, Ryan Cory-Wright, Vassilis Digalakis
Problem definition: We present our collaboration with the OCP Group, one of the world’s largest producers of phosphate and phosphate-based products, in support of a green initiative designed to reduce OCP’s carbon emissions significantly. We study the problem of decarbonizing OCP’s electricity supply by installing a mixture of solar panels and batteries to minimize its time-discounted investment cost
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Inventory Productivity and Stock Returns in Manufacturing Networks Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-12-22 Deepak Agrawal, Nikolay Osadchiy
Problem definition: We provide a novel, supply network-based perspective on inventory productivity and incentives for its improvement. Methodology/results: Using data from 2003 to 2019, we find that inventory productivity is lower materially and statistically for firms located upstream in the supply network, and higher for high degree and more central firms. Firms with high inventory productivity show
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Waste Not Want Not? The Environmental Implications of Quick Response and Upcycling Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-12-21 Xiaoyang Long, Luyi Gui
Problem definition: Overproduction is often cited as the fashion industry’s biggest environmental issue, as textile production is notoriously resource intensive and pollutive, and much of the textile produced may end up as “deadstock” fabric or finished goods that do not sell. In this paper, we study two major approaches to address this issue: quick response, whereby finished goods inventory is replenished
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Online Learning for Dual-Index Policies in Dual-Sourcing Systems Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-12-12 Jingwen Tang, Boxiao Chen, Cong Shi
Problem definition: We consider a periodic-review dual-sourcing inventory system with a regular source (lower unit cost but longer lead time) and an expedited source (shorter lead time but higher unit cost) under carried-over supply and backlogged demand. Unlike existing literature, we assume that the firm does not have access to the demand distribution a priori and relies solely on past demand realizations
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OM Forum—The Operations of Well-Being: An Operational Take on Happiness, Equity, and Sustainability Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-12-08 Charles J. Corbett
Problem definition: The meaning of life must surely be more about well-being than wealth, but what does that have to do with operations? Well-being encompasses a lot: Are we happy as individuals? Are groups treated fairly? Is society sustainable? Operations management has many impacts on well-being at each of these levels, some more obvious than others. Methodology/results: This MSOM Fellow forum article
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Shortening Emergency Medical Response Time with Joint Operations of Uncrewed Aerial Vehicles with Ambulances Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-12-07 Xiaoquan Gao, Nan Kong, Paul Griffin
Problem definition: Uncrewed aerial vehicles (UAVs) are transforming emergency service logistics applications across sectors, offering easy deployment and rapid response. In the context of emergency medical services (EMS), UAVs have the potential to augment ambulances by leveraging bystander assistance, thereby reducing response times for delivering urgent medical interventions and improving EMS outcomes
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Private vs. Pooled Transportation: Customer Preference and Design of Green Transport Policy Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-12-06 Kashish Arora, Fanyin Zheng, Karan Girotra
Problem definition: Large cities around the globe are facing an alarming growth in traffic congestion and greenhouse gas emissions, to which a significant contributor in recent years are on-demand cabs operated by ride-hailing platforms. Newly emerged pooled transportation options like shuttle services are cheaper and greener alternatives. However, those alternatives are still new to many customers
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Scheduling Smarter: Scheduling Decision Impact on Nurse-Aide Turnover Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-11-28 Kevin Mayo, Eric Webb, George Ball, Kurt Bretthauer
Research problem: High turnover rates in long-term nursing facilities exacerbate the existing shortage of caregivers, a trend that will only worsen as the population of the United States ages. Part-time certified nursing assistants (CNAs) provide a significant amount of patient care in these facilities. CNAs also have high annual rates of turnover, which can harm health outcomes and increase the cost
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Multiproduct Dynamic Pricing with Limited Inventories Under a Cascade Click Model Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-11-22 Sajjad Najafi, Izak Duenyas, Stefanus Jasin, Joline Uichanco
Problem definition: Designing effective operational strategies requires a good understanding of customer behavior. The classic economic theory of customer choice has long been the paradigm in the operations literature. However, the rise of online marketplaces such as e-commerce has triggered considerable efforts in academia and industry to develop alternative models that not only provide a good approximation
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Got (Optimal) Milk? Pooling Donations in Human Milk Banks with Machine Learning and Optimization Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-11-17 Timothy C. Y. Chan, Rafid Mahmood, Deborah L. O’Connor, Debbie Stone, Sharon Unger, Rachel K. Wong, Ian Yihang Zhu
Problem definition: Human donor milk provides critical nutrition for millions of infants who are born preterm each year. Donor milk is collected, processed, and distributed by milk banks. The macronutrient content of donor milk is directly linked to infant brain development and can vary substantially across donations, which is why multiple donations are typically pooled together to create a final product
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Should Gig Platforms Decentralize Dispute Resolution? Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-11-16 Wee Kiat Lee, Yao Cui
Problem definition: Disputes on online labor platforms have traditionally been mediated by the platform itself, which is often viewed as unhelpful or biased. However, there are emerging platforms that promise to resolve disputes with a novel tribunal system and relegate dispute resolution to individual platform users through a voting mechanism. We aim to examine the dispute resolution systems used
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Agricultural Supply Chains in Emerging Markets: Competition and Cooperation Under Correlated Yields Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-11-14 Jian Li, Panos Kouvelis, Maqbool Dada
Problem definition: We model the development of effective agricultural supply chains (agri-chains) in emerging economies for better utilization of land and intermediate processing resources for harvested export-oriented goods. We study decisions made by farmers, intermediate processors, and government officials in agri-chains. The structure and management of supply chains and government minimum guaranteed
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Data-Driven Allocation of Preventive Care with Application to Diabetes Mellitus Type II Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-11-06 Mathias Kraus, Stefan Feuerriegel, Maytal Saar-Tsechansky
Problem definition: Increasing costs of healthcare highlight the importance of effective disease prevention. However, decision models for allocating preventive care are lacking. Methodology/results: In this paper, we develop a data-driven decision model for determining a cost-effective allocation of preventive treatments to patients at risk. Specifically, we combine counterfactual inference, machine
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The Effect of Probabilistic Selling on Channel Dynamics in Supply Chains Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-11-02 Scott Fay, Shahryar Gheibi
Problem definition: Probabilistic selling (PS) is a business model whereby, in addition to selling transparent products, a firm sells an opaque good, which is unknown to buyers until after purchase. We examine how PS affects retailer-manufacturer interactions in markets for physical goods and how upstream competition impacts channel members’ incentives to facilitate PS. Methodology/results: Using a
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A Branch-and-Price Algorithm Enhanced by Decision Diagrams for the Kidney Exchange Problem Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-10-27 Lizeth C. Riascos-Álvarez, Merve Bodur, Dionne M. Aleman
Problem definition: Kidney paired donation programs allow patients registered with an incompatible donor to receive a suitable kidney from another donor, as long as the latter’s co-registered patient, if any, also receives a kidney from a different donor. The kidney exchange problem (KEP) aims to find an optimal collection of kidney exchanges taking the form of cycles and chains. Methodology/results:
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In-Person or Virtual? What Will Operations Management/Research Conferences Look Like? Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-10-25 Antonio Cavallin Toscani, Atalay Atasu, Luk N. Van Wassenhove, Andrea Vinelli
Problem definition: We examine the environmental implications of shifting from in-person to virtual conference formats and identify the effects of such a shift on the value conferences provide to our societies. We extend work from other fields to present a more comprehensive comparison of the environmental impact and perceived value of different conference formats for the operations management/research
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Quick Response Under Strategic Manufacturer Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-10-17 Jiguang Chen, Qiying Hu, Duo Shi, Fuqiang Zhang
Problem definition: Quick response is a classic operations strategy that allows a retailer to place a rapid replenishment order during the selling season using information learned from early sales. The benefits of quick response are widely studied in the literature under the condition that the manufacturer’s wholesale prices are exogenously given. Motivated by the practice of emerging small and medium-sized
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Popularity Bias in Online Dating Platforms: Theory and Empirical Evidence Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-10-17 Musa Eren Celdir, Soo-Haeng Cho, Elina H. Hwang
Problem definition: Generating recommendations of compatible dating partners is a challenging task for online dating platforms because uncovering users’ idiosyncratic preferences is difficult. Thus, platforms tend to recommend popular users to others more frequently than unpopular users. This paper studies such popularity bias in an online dating platform’s recommendations and its consequences for
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Strategic Heterogeneous Customers in a Transportation Station: Information and Pricing Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-10-11 Athanasia Manou, Pelin G. Canbolat, Fikri Karaesmen
Problem definition: We consider pricing of services with strategic customers who have heterogeneous delay costs motivated by transportation systems. Customers are strategic decision makers who weigh the reward from the transport service against the waiting cost for the vehicle at a transportation station. Customers arrive at the station according to a Poisson process, and the vehicle visits the station
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Is Full Price the Full Story When Consumers Have Time and Budget Constraints? Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-10-11 Simin Li, Martin A. Lariviere, Achal Bassamboo
Problem definition: A canonical model in service management assumes that consumers base the purchase of a service on its full price, that is, a linear combination of the monetary price and the expected time commitment. Although analytically convenient, when this assumption holds is an unexplored question. Methodology/results: We present a model of consumers allocating their time and money between working
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Optimal Intraproject Learning Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-10-10 Huan Cao, Nicholas G. Hall, Guohua Wan, Wenhui Zhao
Problem definition: Intraproject learning in project scheduling involves the use of learning among the similar tasks in a project to improve the overall performance of the project schedule. Under intraproject learning, knowledge gained from completing some tasks in a project is used to execute similar later tasks in the same project more efficiently. We provide the first model and solution algorithms
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Shared Service Delivery Can Increase Client Engagement: A Study of Shared Medical Appointments Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-09-29 Ryan W. Buell, Kamalini Ramdas, Nazlı Sönmez, Kavitha Srinivasan, Rengaraj Venkatesh
Problem definition: Clients and service providers alike often consider one-on-one service delivery to be ideal, assuming, perhaps unquestioningly, that devoting individualized attention best improves client outcomes. In contrast, in shared service delivery, clients are served in batches and the dynamics of group interaction could lead to increased client engagement, which could improve outcomes. However
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Buffer Times Between Scheduled Events in Resource Assignment Problem: A Conflict-Robust Perspective Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-09-26 Jinjia Huang, Chung-Piaw Teo, Fan Wang, Zhou Xu
Problem definition: In many resource scheduling problems for services with scheduled starting and completion times (e.g., airport gate assignment), a common approach is to maintain appropriate buffer between successive services assigned to a common resource. With a large buffer, the chances of a “crossing” (i.e., a flight arriving later than the succeeding one at the gate) will be significantly reduced
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The Driver-Aide Problem: Coordinated Logistics for Last-Mile Delivery Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-09-25 S. Raghavan, Rui Zhang
Problem definition: Last-mile delivery is a critical component of logistics networks, accounting for approximately 30%–35% of costs. As delivery volumes have increased, truck route times have become unsustainably long. To address this issue, many logistics companies, including FedEx and UPS, have resorted to using a “driver aide” to assist with deliveries. The aide can assist the driver in two ways
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On the Interplay of Production Flexibility, Capital Structure, and Investment Timing Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-09-25 Guoming Lai, Peter Ritchken, Qi Wu
Problem definition: Modern technologies have made it viable for firms to lower the costs of switching on and off production in response to market changes. In this paper, we explore how production start–stop flexibility impacts joint operating policies, financing, and investment timing decisions. Methodology/results: We develop a continuous-time, optimal stopping model in which equity holders of the
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Dynamic Pricing and Capacity Optimization in Railways Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-09-25 Chandrasekhar Manchiraju, Milind Dawande, Ganesh Janakiraman, Arvind Raghunathan
Problem definition: Revenue management in railways distinguishes itself from that in traditional sectors, such as airline, hotel, and fashion retail, in several important ways. (i) Capacity is substantially more flexible in the sense that changes to the capacity of a train can often be made throughout the sales horizon. Consequently, the joint optimization of prices and capacity assumes genuine importance
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Effect of Guided Delegation and Information Proximity on Multitier Responsible Sourcing Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-09-19 Sammi Y. Tang, Jing-Sheng Song
Problem definition: Guided delegation, a practice in which companies provide guidelines when delegating supplier management to tier 1 firms, is a common practice in managing complex supply chains. We study the benefits and risks of this approach in a three-tier supply chain setting consisting of a buying firm, a tier 1 contract manufacturer, and tier 2 suppliers, where responsibility risk stems from
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Selecting Cover Images for Restaurant Reviews: AI vs. Wisdom of the Crowd Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-09-07 Warut Khern-am-nuai, Hyunji So, Maxime C. Cohen, Yossiri Adulyasak
Problem definition: Restaurant review platforms, such as Yelp and TripAdvisor, routinely receive large numbers of photos in their review submissions. These photos provide significant value for users who seek to compare restaurants. In this context, the choice of cover images (i.e., representative photos of the restaurants) can greatly influence the level of user engagement on the platform. Unfortunately
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Do Noisy Customer Reviews Discourage Platform Sellers? Empirical Analysis of an Online Solar Marketplace Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-09-01 Herbie Huang, Nur Sunar, Jayashankar M. Swaminathan, Rahul Roy
Problem definition: Customer reviews are essential to online marketplaces. However, reviews typically vary; ratings of a product or service are rarely the same. In many service marketplaces, including the ones for solar panel installations, supply-side participants are active. That is, a seller must make a proposal to serve each customer. In such marketplaces, it is not clear how (or if) the dispersion
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Truncated Balancing Policy for Perishable Inventory Management: Combating High Shortage Penalties Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-09-01 Can Zhang, Turgay Ayer, Chelsea C. White
Problem definition: Motivated by a platelet inventory management problem, we study a fixed lifetime perishable inventory management problem under a general demand process. Determining an optimal ordering policy for perishable inventory systems is particularly challenging because of the well-known “curse of dimensionality.” Approximation policies with worst-case performance bounds have been developed
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Mind the Gap: Gender Disparity in Online Learning Platform Interactions Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-08-31 Zhihan (Helen) Wang, Jun Li, Di (Andrew) Wu
Problem definition: Education technology innovations, such as massive open online course (MOOC) platforms, could potentially enable a more inclusive learning environment by delivering education to traditionally disadvantaged learners, like women. However, inclusivity does not necessarily translate into equal treatment on the platform. We investigate whether female and male learners benefit equally
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Supply Chain Finance Redefined: A Supply Chain-Centric Viewpoint of Working Capital, Hedging, and Risk Management Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-08-29 Panos Kouvelis
Problem definition: The narrow definition of supply chain finance (SCF) as a financing scheme for accounts receivables fails to capture the knowledge creation of MSOM research scholars of the last 25 years who labored in the area under this label. A redefined definition of the research-and-application field, under the acronym integrated SCF (iSCF), better reflects the interplay of operational, financial
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Sustainability Implications of Supply Chain Responsiveness Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-08-16 Ali Kaan Tuna, Robert Swinney
Problem definition: A critical decision made by firms is whether to adopt a responsive supply chain (prioritizing speed) or an efficient supply chain (prioritizing cost). We consider the environmental implications of this choice, distinguishing between responsiveness achieved via three pathways: responsive offshore supply chains increase speed by using expedited production and distribution methods;
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Performance Guarantees for Network Revenue Management with Flexible Products Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-08-11 Wenchang Zhu, Huseyin Topaloglu
Problem definition: We consider network revenue management problems with flexible products. We have a network of resources with limited capacities. To each customer arriving into the system, we offer an assortment of products. The customer chooses a product within the offered assortment or decides to leave without a purchase. The products are flexible in the sense that there are multiple possible combinations
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Admission Control Bias and Path-Dependent Feedback Under Diagnosis Uncertainty Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-08-10 Song-Hee Kim, Jordan Tong
Problem definition: Do physicians exhibit predictable behavioral bias when making admission control decisions under patient diagnosis uncertainty with stochastic arrivals and lengths of stay? How can we structure feedback to help improve their decision making? Methodology/results: We use a behavioral model to theorize how a diagnosis anchoring and insufficient adjustment heuristic may lead to an over-rationing
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On the Distributed Energy Storage Investment and Operations Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-08-09 Owen Q. Wu, Roman Kapuscinski, Santhosh Suresh
Problem definition: Energy storage has become an indispensable part of power distribution systems, necessitating prudent investment decisions. We analyze an energy storage facility location problem and compare the benefits of centralized storage (adjacent to a central energy generation site) versus distributed storage (localized at demand sites). This problem encompasses optimizing storage capacities
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Disease Bundling or Specimen Bundling? Cost- and Capacity-Efficient Strategies for Multidisease Testing with Genetic Assays Manuf. Serv. Oper. Manag. (IF 6.3) Pub Date : 2023-08-08 Douglas R. Bish, Ebru K. Bish, Hussein El Hajj
Problem definition: Infectious disease screening can be expensive and capacity constrained. We develop cost- and capacity-efficient testing designs for multidisease screening, considering (1) multiplexing (disease bundling), where one assay detects multiple diseases using the same specimen (e.g., nasal swabs, blood), and (2) pooling (specimen bundling), where one assay is used on specimens from multiple