SEO Publications

Closing the Gap: A Learning Algorithm for Lost-Sales Inventory Systems with Lead Times

Anonymous — Tue, 27 Apr 2021 14:37:12 +0000

Closing the Gap: A Learning Algorithm for Lost-Sales Inventory Systems with Lead Times Anonymous (not verified) Tue, 04/27/2021 - 08:37

We consider a periodic-review, single-product inventory system with lost sales and positive lead times under censored demand. In contrast to the classical inventory literature, we assume the firm does not know the demand distribution a priori and makes an adaptive inventory-ordering decision in each period based only on the past sales (censored demand) data. The standard performance measure is regret, which is the cost difference between a learning algorithm and the clairvoyant (full-information) benchmark. When the benchmark is chosen to be the (full-information) optimal base-stock policy, Huh et al. [Huh WT, Janakiraman G, Muckstadt JA, Rusmevichientong P (2009a) An adaptive algorithm for finding the optimal base-stock policy in lost sales inventory systems with censored demand. Math. Oper. Res. 34(2):397–416.] developed a nonparametric learning algorithm with a cubic-root convergence rate on regret. An important open question is whether there exists a nonparametric learning algorithm whose regret rate matches the theoretical lower bound of any learning algorithms. In this work, we provide an affirmative answer to this question. More precisely, we propose a new nonparametric algorithm termed the simulated cycle-update policy and establish a square-root convergence rate on regret, which is proven to be the lower bound of any learning algorithm. Our algorithm uses a random cycle-updating rule based on an auxiliary simulated system running in parallel and also involves two new concepts, namely the withheld on-hand inventory and the double-phase cycle gradient estimation. The techniques developed are effective for learning a stochastic system with complex system dynamics and lasting impact of decisions.

Zhang, H., Chao, X., & Shi, C. (2020). Closing the gap: A learning algorithm for lost-sales inventory systems with lead times. Management Science, 66(5), 1962-1980. https://doi.org/10.1287/mnsc.2019.3288

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Operational Transparency on Crowdfunding Platforms

Anonymous — Wed, 29 Apr 2020 20:33:16 +0000

Operational Transparency on Crowdfunding Platforms Anonymous (not verified) Wed, 04/29/2020 - 14:33

Online crowdfunding has emerged as a powerful tool to raise funds for emergency response. Crowdfunding campaigns can use two transparency tools to attract donors: updates and certification. Updates are additional messages that the organizer issues after launching the campaign and are a form of operational transparency when they communicate the campaign’s work to donors. Alternatively, certification is a form of conventional transparency that ensures the campaign truly benefits a charitable purpose. Using an econometric analysis, we investigate the effects of transparency on donations. We study the direction of causality and mechanisms behind work‐related updates by conducting an experiment. Results from the econometric analysis using over 100,000 campaigns benefiting victims of emergencies reveal that both updates and certification have positive effects on donations. Each additional work‐related word in an update (operational transparency) increases donations on average by $65 per month, while certification (conventional transparency) raises funds on average by $22 per month. Results from the experiment confirm the direction of causality; posting work‐related updates in crowdfunding campaigns increases donations. Two mechanisms explain this effect: donors’ enhanced perceptions of effort and perceptions of trust.

Mejia, J., Urrea, G., & Pedraza‐Martinez, A. J. (2019). Operational transparency on crowdfunding platforms: effect on donations for emergency response. Production and Operations Management

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Mejia, J., Urrea, G., & Pedraza‐Martinez, A. J. (2019).

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Inventory Management for Mobile Money Agents in the Developing World

Anonymous — Thu, 15 Aug 2019 02:33:29 +0000

Inventory Management for Mobile Money Agents in the Developing World Anonymous (not verified) Wed, 08/14/2019 - 20:33

Mobile money systems, platforms built and managed by mobile network operators to allow money to be stored as digital currency, have burgeoned in the developing world as a mechanism to transfer money electronically. Mobile money agents exchange cash for electronic value and vice versa, forming the backbone of an emerging electronic currency ecosystem that has potential to connect millions of poor and “unbanked” people to the formal financial system. Unfortunately, low service levels due to agent inventory management are a major impediment to the further development of these ecosystems. This paper describes models for the agent’s inventory problem, unique in that sales of electronic value (cash) correspond to an equivalent increase in inventory of cash (electronic value). This paper presents a base inventory model and an analytical heuristic that are used to determine optimal stocking levels for cash and electronic value given an agent’s historical demand. When tested with a large sample of transaction-level data provided by an East African mobile operator, both the base model and the heuristic improved agent profitability by reducing inventory costs (defined here as the sum of stockout losses and cost of capital associated with holding inventory). The heuristic increased estimated agent profits by 15% relative to profits realized through agents actual decisions, while also offering substantial computational advantages relative to the base model.

Balasubramanian, Karthik and Drake, David and Fearing, Douglas, Inventory Management for Mobile Money Agents in the Developing World (October 12, 2018).

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Balasubramanian, Karthik and Drake, David and Fearing, Douglas, (2018)

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It’s Not Easy Building Green: The Impact of Public Policy, Private Actors, and Regional Logics on Voluntary Standards Adoption

Anonymous — Thu, 15 Aug 2019 02:28:22 +0000

It’s Not Easy Building Green: The Impact of Public Policy, Private Actors, and Regional Logics on Voluntary Standards Adoption Anonymous (not verified) Wed, 08/14/2019 - 20:28

Human-induced climate change is one of the most daunting challenges of the 21st century. Addressing climate change will require new sectors that create economically and ecologically sustainable products and services, often supported through voluntary certification standards. For example, the Leadership in Energy and Environmental Design (LEED) voluntary certification standard seeks to reduce the environmental impacts of buildings through stimulating growth of the “green building” sector. Both public and private actors have attempted to promote such standards; however, we know little about the relative efficacy of such efforts. We know even less about how regional culture conditions the impact of such public and private promotion. In this study, we theorize and test how regional institutional logics filter the efficacy of public and private efforts to promote adoption of standards. Our results demonstrate that, in addition to policy, private actors such as social movement organizations, market intermediaries, and environmental entrepreneurs play a role in bolstering adoption. Yet, the efficacy of such interventions is dependent upon variations in regional culture; only environmental entrepreneurs were able to bridge the cultural divide and be equally effective in regions dominated by either market or community logics. Our findings advance understanding of how new markets are socially constructed and the conditions under which efforts to promote new sectors are more effective.

York, Jeffrey & Vedula, Siddharth & Lenox, Michael. (2017). It's Not Easy Building Green: The Impact of Public Policy, Private Actors, and Regional Logics on Voluntary Standards Adoption. Academy of Management Journal. 61. amj.2015.0769. 10.5465/amj.2015.0769.

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York, Jeffrey & Vedula, Siddharth & Lenox, Michael. (2017).

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Time Compression (Dis)economies: An Empirical Analysis

Anonymous — Tue, 13 Aug 2019 15:13:34 +0000

Time Compression (Dis)economies: An Empirical Analysis Anonymous (not verified) Tue, 08/13/2019 - 09:13

To investigate time compression dis-economies (TCD), this study estimated time-cost elasticities using 459 oil and gas global investment projects (1997-2010). Results show that the average cost of accelerating investments is negative: a firm could cut $6.3 million in costs of a single project by accumulating asset stocks one month faster. About 88 percent of the projects exhibit negative time-cost elasticities with over 39 percent of unrealized economies of time compression. Only 12 percent of the projects are subject to TCD. These time inefficiencies or frictions do not negate the existence of TCD, but suggest they are less prevalent than assumed in the literature. Management experience, R&D investment, firm size, economic development and political stability are shown to be associated with greater time compression efficiency.

Hawk, A., & Pacheco‐de‐Almeida, G. (2018). Time compression (dis)economies: An empirical analysis. Strategic Management Journal, 39(9), 2489-2516. doi:10.1002/smj.2915

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Hawk, Ashton and Pacheco-de-Almeida, Gonçalo. (2018)

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An Identity-Based Approach to Social Enterprise

Anonymous — Sun, 17 Jun 2018 13:41:31 +0000

An Identity-Based Approach to Social Enterprise Anonymous (not verified) Sun, 06/17/2018 - 07:41

Social entrepreneurship has gained widespread acclaim as a tool for addressing social and environmental problems. This paper presents a theory of how and why social entrepreneurs balance the competing goals of social impact and commercial success through creating new ventures. Social psychology identity theories that have shown that most people hold multiple identities – e.g., environmentalist, religious person, entrepreneur, devoted family member. Making one identity salient versus another can alter one’s behavior. The authors use this identity salience framework to explain: (1) how commercial and social welfare goals become relevant to entrepreneurs, (2) how different types of entrepreneurs perceive the tension between these goals, and (3) what implications this has for how entrepreneurs recognize and develop social entrepreneurship opportunities. Entrepreneurs with a social purpose or hybrid entrepreneur identity are more likely than those with an economic entrepreneur identity to recognize and value opportunities related to the pursuit of social and/or environmental goals though new venture creation.

Wry, T., & York, J. (2017). an identity-based approach to social enterprise. Academy of Management Review, 42(3), 437-460. doi:10.5465/amr.2013.0506

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Tyler Wry and Jeff York, Academy of Management Review (2017)

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