bluuebunny/crossref_metadata_2025 huggingface dataset:
Vendor Selection with Bundling*
Authors: Rosenthal Edward C. , Zydiak James L. , Chaudhry Sohail S.
Published: June 2007

Product bundling has become increasingly prevalent not only in consumer goods but also in the industrial sector. We study a purchasing problem in which a buyer must obtain necessary numbers of various stock items from a variety of vendors who charge different prices, have limited capacities and different levels of quality, and offer bundled products at discounted prices.

We examine relationships among different bundling scenarios and show that the most general scenario is one in which free items are given to the buyer when sufficient quantities are purchased. We develop a mixed integer linear program that finds the purchasing strategy for the buyer that minimizes the total purchase cost. We present computational results which indicate that the problem is very tractable to solve optimally on a personal computer with standard optimization software. Finally, three extensions of the model are discussed.
A Contingent Claims Model of Corporate Pension Obligations*
Authors: Seow Gim S.
Published: June 2007

This study develops a contingent claims model for valuing the implicit market value of the pension claim associated with defined benefit pension plans. In this model, the firm issues pension, debt, and equity claims. These claims have joint access to two underlying portfolios: corporate and pension. The changes in the market values of these two portfolios are assumed to follow a joint lognormal diffusion process. By imposing terminal boundary conditions implied by Employment Retirement Income Security Act (ERISA) rules and the pension insurance provisions of the Pension Benefit Guaranty Corporation (PBGC) on the partial differential equation, a solution for the pension value is obtained. This quasi‐market measure of the value of the pension claim may be represented by a portfolio consisting of four components: (1) a risk‐free discount bond with face value equal to promised pension benefits; (2) a short put on pension assets with exercise price equal to pension benefits; (3) a long call on 30 percent of corporate assets with exercise price equal to the face value of secured corporate debt; and (4) a short call on 30 percent of corporate assets with a stochastic exercise price which depends on the terminal value of the pension fund. A numerical example using 1992 and 1993 financial statement data from six major U.S. corporations is provided. This example illustrates the usefulness of the model's prediction and the potential effect of theoretical pension values on corporate debt‐equity ratios.
Order Release in Automated Manufacturing Systems
Authors: Lingayat Sunil , Mittenthal John , O'Keefe Robert M.
Published: June 2007

Order release occurs when orders are released to the shop floor for processing. An order release mechanism (ORM) selectively releases orders to improve shop management and performance. This paper focuses on the question of how to select and develop better ORMs, providing guidelines for practice. We develop a number of propositions on how an ORM should be established and the impact of implementing an ORM. To test the validity of these propositions, we consider three real different automated manufacturing systems. For each system, ORMs are developed and implemented in simulation models. Analysis of the experimental results suggests that some propositions are true under all situations, whereas the degree of validity of others is dependent on variables like system type, and the levels of other design variables. We conjecture that all the propositions can be accepted when the volume of production is high. We use the analysis and the propositions to generate guidelines for practice and areas for future research.
The Industry‐Level Impact of Information Technology: An Empirical Analysis of Three Industries*
Authors: Segars Albert H. , Grover Varun
Published: June 2007

As noted by several observers, information technology (IT) has rapidly evolved from “part of the organizational overhead” into a strategic resource capable of changing patterns of competition within industries [8, p. 275]. However, while this evolution has become part of the fabric for literature exploring the strategic impact of IT, very few studies have been undertaken to determine the specific influence(s) of technology‐based competition on industry structure. The development of analytical frames for capturing aspects of industry behavior provides a potentially powerful tool for evaluating the influence strategic IT initiatives may have on current bases of competition. Drawing from the theoretical disciplines of industrial economics and strategic management, this study develops a framework for analyzing longitudinal changes in industry structure. Working within this frame, the study then analyzes the nature and change of structure in three industries during and after the introduction of strategic information technology. The findings suggest that in each of these industries structural characteristics were dramatically altered subsequent to the introduction of competitive‐based IT. In two of the industries (airlines and industrial chemicals), early adopters broke away from other industry participants, in effect, forming unique bases of competition. In the remaining industry (drug wholesalers), previously distinct bases of competition consolidated, resulting in a more competitive industry structure than that which existed prior to the technological innovation.
A Comparative Study of Cell Formation Techniques: Experimental Findings on Data‐Dependency and Solution Quality
Authors: Park Yong‐Tae , Wemmerlöv Urban
Published: June 2007

A large number of techniques for solving the cell formation problem has emerged in recent years. However, little effort has been spent on determining the procedures' relative performance. This paper identifies four problem areas for which important decisions must be made in connection with a comparative study: asymmetry among procedures with respect to input data, sensitivity to input data, ability of cell formation techniques to generate different solutions, and criteria for acceptable cell performance. Relying on a new taxonomy that categorizes cell formation techniques based on required input data, and a new approach to describing and manipulating shop data, this paper illustrates how choices within the four areas above can be resolved within the context of a comparative study. The experiments uncover fundamental relations between cell formation techniques, the types of input data they use, the characteristics of the data that drive the models, and the resulting performance.
On Extending Russell and Krajewski's Algorithm for Economic Purchase Order Quantities*
Authors: Carter Joseph R. , Ferrin Bruce G. , Carter Craig R.
Published: June 2007

Russell and Krajewski presented an optimal purchase order quantity algorithm that considered the effect of the transportation rate structure for less‐than‐truckload (LTL) shipments. The authors applied the Russell and Krajewski algorithm to a variety of freight classes and lengths‐of‐haul. Anomalous cases were found in which the freight rate schedule, when used with the suggested algorithm, resulted in incorrect order size decisions. In this comment, the authors consider the impact of these anomalies on the optimal order quantity and associated total costs. A procedure is presented to adjust the Russell and Krajewski algorithm to arrive at the optimal purchase order quantity and the lowest total annual cost.
An Application of Covariance Analysis to Capacity Expansion at an Intermodal Blending Plant
Authors: Le Blanc Louis A. , Rucks Conway T.
Published: June 2007

Analysis of covariance (ANCOVA) integrates analysis of variance (ANOVA) and regression. The basic advantages of ANCOVA over ANOVA are: (1) generally greater power, and (2) reduction in bias caused by differences between groups that exist before experimental treatments are administered. ANCOVA has numerous possible applications in the evaluation of simulation output, especially where the values of covariates are not known until after the simulation experiment is completed. These covariates are uncontrolled experimental variables that influence the response but are themselves unaffected by the experimental factors.

This paper provides an application of multiple analysis of covariance (MANCOVA) to a simulation experiment to determine whether an intermodal transfer and blending facility should add commodity handling and storage capacity. A discrete simulation model of the plant generated cash flows from several proposed capital projects. These cash flows indicated that capacity expansion was a prudent decision. However, when the treatment means for the various combinations of additional capacity were adjusted by MANCOVA for the same levels of operating volume and scheduling performance, the adjusted cash flows produced unacceptable financial returns. In this example, the increased precision of the MANCOVA model suggested that plant management should not invest in additional storage and commodity handling capacity.
Comparing Decision Rules that Incorporate Customer Diversion in Perishable Asset Revenue Management Situations
Authors: Belobaba Peter P. , Weatherford Lawrence R.
Published: June 2007

Most of the initial work on perishable asset revenue management (PARM) situations assumed no possibility of customer diversion from one product class to another when the former is made unavailable. In this paper, an evaluation is made of the few published decision rules that incorporate the realistic and common behavior of customer diversion (or sell‐up). We present a new heuristic approach that incorporates diversion and could be used by airlines and other relevant industries to achieve improvements in expected contribution of 0.25 to 2.5% over the approach currently used. The sensitivity of the difference in expected contribution between these rules is tested relative to changes in the input parameters, and managerial insights are presented.
Examining the Impact of Speed of Quality Improvement on Quality‐Related Costs
Authors: Foster S. Thomas , Adam Everett E.
Published: June 2007

The Fine (1986) quality‐based learning curve model is extended to include the consideration of speed of quality improvement. The model demonstrates that under different circumstances rapid quality improvement effects are either beneficial or detrimental to improvement in quality‐related costs. Hypotheses are developed from the analysis of this speed of quality improvement model. The hypotheses are tested in an automotive parts manufacturing company with five similar plants. Results show that with an increase in the speed of quality improvement, the rate of growth in prevention and appraisal costs decrease and the rate of growth in failure costs are unaffected. Rapid speed of quality improvement does yield lesser decreases in failure costs than slower, steadier improvement. However, rapid speed of quality improvement does not yield the predicted lesser decrease in prevention and appraisal costs than slower, steadier improvement. Rapid speed of quality improvement might or might not benefit the organization, perhaps an explanation for some Total Quality Management (TQM) failures. A more deliberate, learning organization is suggested from this research.
Involving Information System Users in Defining System Requirements: The Influence of Procedural Justice Perceptions on User Attitudes and Performance
Authors: Hunton James E.
Published: June 2007

This study incorporates the theoretical framework of procedural justice into the information system (IS) user participation research paradigm. In a field setting, 726 subjects representing 59 local newspaper sites took part in a fully randomized, longitudinal experiment. Four increasing levels of participation concerning specifying system requirements were manipulated: mute, voice, choice, and voice plus choice. As the participation level increased, procedural justice judgments increased correspondingly. Perceptions of control over the development process, satisfaction with the outcome, and objective measures of performance increased from the mute to voice conditions, were unchanged from the voice to choice conditions, and increased again as participation was manipulated at the highest level—voice plus choice. The rich contextual field setting in which this experiment was conducted, combined with strong attitudinal and performance results, encourage researchers to integrate the psychology of procedural justice into the study of IS user participation.
A Heuristic Algorithm for the Capacitated Multiple Supplier Inventory Grouping Problem
Authors: Syam Siddhartha S. , Shetty Bala
Published: June 2007

This paper presents and solves a model for the multiple supplier inventory grouping problem, which involves the minimization of logistics costs for a firm that has multiple suppliers with capacity limitations. The costs included in the model are purchasing, transportation, ordering, and inventory holding, while the firm's objective is to determine the optimal flows and groups of commodities from each supplier. We present an algorithm, which combines subgradient optimization and a primal heuristic, to quickly solve the multiple supplier inventory grouping problem. Our algorithm is tested extensively on problems of various sizes and structures, and its performance is compared to that of OSL, a state‐of‐the‐art integer programming code. The computational results indicate that our approach is extremely efficient for solving the multiple supplier inventory grouping problem.
An Empirical Test of the Strategic‐Grid Model of Information Systems Planning*
Authors: Tukana Semi , Weber Ron
Published: June 2007

Contingency models of information systems planning predict that no single planning approach will suit all organizations' needs. Little empirical research has been undertaken, however, to evaluate this prediction. Accordingly, we used McFarlan, McKenney, and Pyburn's (1983) strategic‐grid model to study the information systems planning problems encountered by 49 governmental agencies. Twenty‐seven agencies were required to follow a planning approach best suited to organizations that had a high level of dependence on both their existing and proposed systems. We predicted that agencies not having these characteristics would encounter the most problems with the approach. The remaining 22 agencies could choose their own planning approach. We studied this latter group to determine whether the problems encountered by the first group could be attributed to the mandated approach. Overall, the empirical results obtained were equivocal. Some results indicated that more planning problems were encountered by agencies in which the mandated approach was not appropriate to their position in the strategic grid. Other results were not supportive of this proposition. More work needs to be undertaken, therefore, to evaluate the predictive and explanatory power of contingency models of information systems planning. In addition, our research indicates a need to develop more rigorous theories of information systems planning behaviors, to improve the instruments needed to measure these behaviors, to explore the relationship between information systems planning behaviours and organizational effectiveness, to investigate how organizational learning impacts planning behaviors, and to determine the types of information systems planning problems that diffuse through organizations and those that remain localized.
A Note on ‘An Approximate Solution to Deterministic Systems’
Authors: Vemuganti Gautham , Batta Rajan , Zhu Yixin
Published: June 2007

In a recent paper, Moeeni and Chang (1990) presented an efficient heuristic solution method to solve a specific case of a deterministic kanban system. In this paper, we first provide a simple numerical example to show that the kanban system formulation proposed by Moeeni and Chang can result in infeasible solutions. We then present a modified formulation and show its feasibility. We discuss the implications of the corrected formulation and finally present conclusions and future research directions.
A Note on ‘An Approximate Solution to Deterministic Kanban Systems’: A Commentary and Further Insights
Authors: Moeeni Farhad , Chang Yih‐Long
Published: June 2007

In a recent paper, Vemuganti, Batta, and Zhu (1996) stated that the linear programming model suggested by Moeeni and Chang (1990) could result in infeasibility. They also suggested an alternative mathematical formulation for determining the number of kanbans. The intention of this article is twofold. First, we maintain that the finding of Vemuganti et al., while valid, is based on a misplaced emphasis on the purpose of the Moeeni and Chang article. Second, we demonstrate that the Vemuganti et al. formulation is a special case of a more general model proposed by Bitran and Chang (1987).
Designing Lateral Organizations: An Analysis of the Benefits, Costs, and Enablers of Nonhierarchical Organizational Forms*
Authors: Joyce William F. , McGee Victor E. , Slocum John W.
Published: June 2007

Twenty‐first century organizations will require designs that enable them to cope with turbulent environments. Organizations have experimented with lateral organizational designs for this purpose, but research evidence concerning these forms is sparse. We analyzed data obtained from 512 employees within eight diverse organizations implementing flexible lateral organizations. Using a sequence comparison methodology, we were able to identify and categorize the major costs, benefits, and enablers associated with implementing these forms of complex organizations. Propositions for effectively managing lateral relations were tested and managerial implications were explored.
Contractor Accreditation: A Probabilistic Model
Authors: Sarkar Sumit , Ghosh Deb
Published: June 2007

The selection of competent contractors is a critical function in all business organizations. In contrast to other types of vendors (e.g., distributors, manufacturers, etc.), contractors are typically accredited before any business transaction takes place. In such situations, there is often a considerable amount of uncertainty associated with the accreditation process. This research presents a probabilistic model for accrediting contractors. We discuss a methodology in which probability measures are used to capture the uncertainty inherent in the decision process. These probabilities are estimated from data on (i) past applicants and (ii) their eventual performance, if accredited. Furthermore, these probabilities are used to determine when additional information about an applicant should be collected, as well as what kind of information would be most relevant for the vendor under consideration.
Integration Between Business Planning and Information Systems Planning: Validating a Stage Hypothesis
Authors: King William R. , Teo Thompson S.H.
Published: June 2007

This paper proposes and empirically validates a stages of growth model for the evolution of Information Systems Planning (ISP). A questionnaire survey of senior IS executives is used to gather information pertaining to the stages of growth model, which includes measurement of the nature and level of integration between business planning (BP) and ISP. The del test is used to validate empirically benchmark variables for each stage of BP‐ISP integration. The results support the stages of growth model of BP‐ISP integration and the benchmark variables are generally found to be successful in predicting the stage of integration.
Optimal Policy for a Reseller When the Supplier Offers a Temporary Reduction in Price*
Authors: Abad Prakash L.
Published: June 2007

A common practice in product distribution is the case in which the supplier offers a temporary reduction in price. It is suggested in the literature that in such situations, the reseller may engage in forward buying (i.e., purchasing additional stock at the reduced price offered by the supplier for later sale at the regular selling price). In this paper, a model is formulated of the reseller's response when the supplier offers a temporary reduction in price. It is assumed that the market demand for the product is elastic with respect to the selling price the reseller sets. A procedure for determining the optimal response of the reseller is developed. The model presented in this paper can easily be adapted to the case in which the reseller faces a permanent increase in the price charged by the supplier.
The Role of Automation and Labor in Determining Customer Satisfaction in a Telephone Repair Service Process
Authors: Collier David A. , Wilson Darryl D.
Published: June 2007

Telephone repair process and performance relationships are modeled using a structural equation approach. The basic structure of the causal model is a function of process flow. The data analysis and modeling approach advocated here can be applied to any manufacturing or service process that has a recurrent process flow and good internal and external performance data. Our primary objectives are to define quantitatively (1) how the performance of repair persons dispatched to the customers' premises is related to automatic testing and repair, and (2) how internal process performance is linked to external customer satisfaction. A secondary objective of this article is to explain briefly some of the practical problems of modeling process‐level performance relationships. Results indicate that the structural equation models are statistically significant and have a meaningful interpretation. Examples of “what if” scenarios using these structural equation models are presented to help managers predict customer satisfaction levels given certain process performance improvements, set standards of performance, and better understand the interdependencies between labor and automation resources in this telephone repair process.
Portfolio Selection Using Stochastic Dominance Criteria
Authors: McNamara John R.
Published: June 2007

The direct application of stochastic dominance criteria to portfolio selection problems has been thought impractical because an extremely large number of combinations of returns must be considered. This paper proposes and evaluates a rigorous statistical procedure for sampling the combinations of returns on candidate risky assets so that stochastic dominance criteria may be used directly in an efficient linear programming model for portfolio selection. The sampling scheme exploits the association of the return on each candidate stock with the return on a market index in a manner analogous to the Sharpe single‐index model, thereby eliminating the large number of combinations with probabilities close to or equalling zero. Portfolios computed by the proposed linear programming stochastic dominance model are compared with those computed by the single‐index quadratic programming model, using 180 months of recent data on a sample of NYSE common stocks.
Lot Splitting in Unbalanced Production Systems*
Authors: Ruben Robert A. , Mahmoodi Farzad
Published: June 2007

This research investigates the impact of lot splitting in unbalanced production systems, under a variety of experimental conditions. Scheduling policies specifically designed for use in the presence of a long‐term bottleneck, a condition frequently encountered in practice, are developed and tested. Results indicate that when steps are taken at nonbottleneck work centers to capitalize on capacity imbalances through increasing the number of setups and, hence, the variety of products produced, shop effectiveness is improved. The results also indicate that scheduling policies that tend to increase the size of the average process batch retard the overlapping of operations, which is critical to the success of the lot‐splitting methodology in reducing flow time. Finally, it is shown that increasing capacity at nonbottleneck work centers along with implementation of effectiveness‐oriented scheduling polices leads to improved shop performance.
The Scientific Visualization of Organizations: A Rationale for a New Approach to Organizational Modeling*
Authors: Markham Steven E.
Published: June 2007

This article examines the rationale for the application of a new research tool, scientific visualization, to the study of organizations. Based upon a general theory of visualization, the ability to simultaneously display both variables and organizational entities should allow for easier and more widespread analysis of organizational research issues. Applications and future directions for both research and praxis are discussed.
A Simulation of Partial Information Use in Decision Making: Implications for DSS Design
Authors: Karim Ahmer S. , Hershauer James C. , Perkins William C.
Published: June 2007

Information matrices are often the output produced by a decision support system. These matrices are a common method for expressing a decision situation under different decision‐making scenarios. The decisions involved in designing a decision support system to generate the information matrix are important and involve several cost and benefit components. A designer needs guidance in making effective design decisions in this context. Such guidance can be provided by considering the relationships among specific design decisions, costs, and benefits. The general objective of this study is to provide a comprehensive framework for this purpose. This study is the first to develop and present a comprehensive cost‐benefit framework for evaluating design decisions for a variety of scenarios.

The specific objective of this research is to provide guidance regarding the number of available information dimensions to incorporate in a computer‐based decision aid. Simulation experiments are conducted with a completely specified model based on the cost‐benefit framework (including needed assumptions) to evaluate how many information dimensions to include for a specific information matrix size to achieve a balance between information use costs and decision quality. Based upon extensive simulation analyses for a hypothetical decision maker, the practical guideline found for designers is to include only the top half of the relevant information dimensions in any specific decision support system. Over a large number of repeating choice decisions, the savings in cognitive effort and information gathering costs clearly offset relatively minor losses in decision quality.
A Model for Planning Resource Requirements in Health Care Organizations
Authors: Bretthauer Kurt M. , Cǒté Murray J.
Published: June 2007

In this paper we present a general model and solution methodology for planning resource requirements (i.e., capacity) in health care organizations. To illustrate the general model, we consider two specific applications: a blood bank and a health maintenance organization (HMO). The blood bank capacity planning problem involves determining the number of donor beds required and determining the size of the nursing and support staff necessary. Capacity must be sufficient to handle the expected number of blood donors without causing excessive donor waiting times. Similar staff, equipment, and service level decisions arise in the HMO capacity planning problem. To determine resource requirements, we develop an optimization/queueing network model that minimizes capacity costs while controlling customer service by enforcing a set of performance constraints, such as setting an upper limit on the expected time a patient spends in the system. The queueing network model allows us to capture the stochastic behavior of health care systems and to measure customer service levels within the optimization framework.
Success Factors in Strategic Supplier Alliances: The Buying Company Perspective*
Authors: Monczka Robert M. , Petersen Kenneth J. , Handfield Robert B. , Ragatz Gary L.
Published: June 2007

The emerging area of supply chain alliances has received considerable attention in the academic and managerial press, yet there are many unanswered questions regarding the dynamics of such relationships. A number of such fundamental issues drive this research initiative, including how alliances are developed, their key success factors, and the specific benefits to be achieved. The study begins by establishing a definition of strategic supplier alliances, based on a comparison of both theoretical and managerial descriptions. The critical antecedents associated with the success of strategic supplier alliances are next developed, and the magnitude of the effect of these factors on partnership success is assessed. The analysis employs both qualitative and quantitative data, collected through an electronic network of over 200 companies, as part of an ongoing benchmarking initiative in supply chain management.

From the perspective of the buying company in the alliance, the following attributes of supplier alliances were found to be significantly related to partnership success: trust and coordination, interdependence, information quality and participation, information sharing, joint problem solving, avoiding the use of severe conflict resolution tactics, and the existence of a formal supplier/commodity alliance selection process. Resource commitment and smoothing over problems were found to be poor predictors of alliance success. The implications of these results for managerial decision making in supplier alliance development are discussed.
Mexican and Swedish Managers' Perceptions of the Impact of EIS on Organizational Intelligence, Decision Making, and Structure*
Authors: Leidner Dorothy E. , Carlsson Sven , Elam Joyce , Corrales Martha
Published: June 2007

Although information technologies in business organizations around the world may be very similar, the meanings conveyed through the technologies may be dependent on managerial values and national culture. Cultural differences need to be understood before information technology developed for organizations in one country can be effectively implemented in organizations in another country. Drawing on survey responses from managers using Executive Information Systems (EIS) across many organizations in Mexico, Sweden, and the United States, the current study examined whether cultural differences influence perceptions of the relationship between Executive Information Systems' use and various outcomes related to decision‐making behaviors and processes. The study found significant differences, predicted by cultural factors, in the impact of EIS use on senior management decision making. The findings confirm the notion that IT is used by executives to reinforce the decision‐making behaviors valued in their culture.
Effectiveness of Joint Estimation When the Outlier Is the Last Observation in an Autocorrelated Short Time Series
Authors: Wright Christine M. , Hu Michael Y. , Booth David E.
Published: June 2007

The effectiveness of the joint estimation (JE) outlier detection method as a process control technique for short autocorrelated time series is investigated and compared with exponentially weighted moving average (EWMA). The research goal is to determine the effectiveness of the method for detecting out‐of‐control observations when they are the last observation in a short autocorrelated time series. This is an important problem because detecting an outlier in the period when it occurs, rather than several periods after it occurs, will preclude the production of more defective units. Two cases are investigated: short simulated time series when normality is assumed, and short real time series when the assumption is violated. The results show that JE is effective for short time series, particularly for autoregressive series when normality is violated. Joint estimation is also effective for moving average series under the normality assumption and less effective when the assumption is violated. In all cases, JE is found to be more effective than EWMA.
The Conference Paper‐Reviewer Assignment Problem*
Authors: Hartvigsen David , Wei Jerry C. , Czuchlewski Richard
Published: June 2007

Conference organizers often face the following problem: Given a collection of submitted papers, select a subset to be presented at the conference. The bulk of the work often amounts to assembling a pool of reviewers and then sending each submitted paper to several reviewers. We present in this paper a technique for finding a good assignment of papers to reviewers. An important feature of the solution we find is that each paper is sent to at least one reviewer who is “as expert as possible” for that paper. A major component of the problem is modeled as a bottleneck version of a capacitated transshipment problem.
Modular Network Design: Using Information and Communication Technology to Allocate Production Tasks in a Virtual Organization*
Authors: Hoogeweegen Martijn R. , Teunissen Wim J. M. , Vervest Peter H. M. , Wagenaar René W.
Published: June 2007

The increased interest in customer service and the trend towards customization gives rise to new organizational forms such as the virtual organization. This paper introduces the Modular Network Design (MND) approach to complement Mowshowitz' (1997) theory of virtual organization. This theory focuses on metamanagement of the virtual organization and consists of four activities: (1) determine and analyze customer requirements, (2) track the possibilities for satisfying these requirements, (3) develop and allocate production tasks among the members of the virtual organization, and (4) assess and adjust tasks and allocation procedures. The MND approach elaborates on this theory by breaking down both the requirements and the production tasks into modular entities, and by measuring the performance of the resulting virtual network in terms of operating costs and throughput time. The major contribution of the MND approach lies in its ability to support the assessment of alternative allocations of production tasks among the members of a virtual organization, using Information and Communication Technology (ICT) as enabler. The assessment of such alternative designs is illustrated by an application of MND in the air cargo industry. The results show how the virtual organization and its members can realize significant improvements in operating costs and throughput times when applying ICT to link and reallocate their modular production tasks in response to customized orders.
The Relationship Between Information System Planning Sophistication and Information System Success: An Empirical Assessment*
Authors: Sabherwal Rajiv
Published: June 2007

Literature on information systems (IS) planning implicitly assumes that a sophisticated IS planning process leads to greater IS success. This paper questions the exclusive reliance on this traditional belief. Instead, because IS planning requires significant organizational resources, prior IS success is essential to convince top management of the importance of IS planning sophistication. Therefore, IS success may influence IS planning sophistication. Several theoretical arguments are advanced in support of this explanation.

Data from a survey of 236 academic institutions are used to empirically assess the two alternative directions of the relationship between IS planning sophistication and IS success. Four structural models including the alternative causal directions are evaluated. Two of these models are supported. Together, they imply that for a high level of IS planning sophistication, either the previous ISs should have been successful or the organization should possess advanced information technology capabilities. Thus, empirical results suggest that the explanation presented here (i.e., IS success facilitates IS planning sophistication) provides an equally good alternative to the more traditional explanation (i.e., IS planning sophistication facilitates IS success).
A Comparative Revenue Analysis of Hotel Yield Management Heuristics
Authors: Baker Timothy Kevin , Collier David A.
Published: June 2007

Yield management is the dynamic pricing, overbooking, and allocation of perishable assets across market segments in an effort to maximize short‐term revenues for the firm. Numerous optimization heuristics for allocation and overbooking exist for the airline industry, whose perishable asset is the airplane seat. When an airplane departs, no revenue is gained from the empty seat(s). In the hotel industry, the perishable asset is the hotel room‐once a room is left empty for a night, that night's revenue cannot be recaptured. The literature on yield management heuristics for the hotel industry is sparse. For the hotel operating environment, no research has adequately (1) integrated overbooking with allocation, (2) modeled the phenomenon of hotel patrons extending or contracting their stay at a moment's notice, or (3) performed a realistic performance comparison of alternative heuristics.

This research develops (1) two hotel‐specific algorithms that both integrate overbooking with the allocation decisions, (2) a simulation model to reproduce realistic hotel operating environments, and (3) compares the performance of five heuristics under 36 realistic hotel operating environments. Seven conclusions are reached with regard to which heuristic(s) perform best in specific operating environments. Generally, heuristic selection is very much dependent on the hotel operating environment. A counterintuitive result is that in many operating environments, the simpler heuristics work as well as the more complex ones.
Information Systems Management Issues: Reporting and Relevance*
Authors: Palvia Prashant C. , Basu Suvojit Choton
Published: June 2007

Reports of key information systems issues have been published over the last two decades in many journals. Leading IS journals (e.g., MIS Quarterly, Information & Management, among others) have published key IS management issue reports every three or four years over the last 15 years, and will probably continue to provide such reports in the future. Although these reports claim to provide decisional guidance to practitioners, researchers, consultants, etc., the authors in their experience have noted concerns about their usefulness. While not questioning the validity of the methods and analysis conducted in these studies, we address two important questions in this article: the manner of reporting of the key issue results (which might be misleading), and the relevance of the results (are they providing what they intended to?). We hope that our discussion will provide new perspectives in making resource allocation decisions to both readers and authors of key issue articles.
Empirically Testing the Relationship Between End‐User Computing Problems and Information Center Success Factors
Authors: Guimaraes Tor , Gupta Yash P. , Rainer R. Kelly
Published: June 2007

End‐user computing (EUC) has been a significant organizational phenomenon for more than two decades and remains critically important with the rapid introduction of new technologies (e.g., client‐server architectures, internet and intranet applications). Although EUC is a mature concept, it is apparent that end users do not become independent over time, but instead require additional resources and support. One widely employed support mechanism is the Information Center (IC).

This study surveyed the internal auditor and the information systems (IS) director in each of 185 organizations. The internal auditors provided responses on the severity of EUC problems in their organizations, and the IS directors supplied information on their firms' performance on the IC critical success factors (CSFs) proposed by Magal, Carr, and Watson (1988). Results show that stronger IC performance is indeed inversely related to the severity of EUC problems encountered by the organization. Specifically, the study's findings show that to have the greatest impact on EUC problems, IC managers should concentrate on clearly defining the IC's mission; establish standards and controls; monitor, coordinate, and help users prioritize applications development; and be responsive to user requests.
Supporting Quick Response Through Scheduling of Make‐to‐Stock Production/Inventory Systems*
Authors: Johnson M. Eric , Scudder Gary
Published: June 2007

Scheduling of traditional job shops in make‐to‐order systems has seen extensive research over the past three decades. In such systems, performance is often related to various job completion metrics such as average flow time, average lateness, etc. This paper examines a scheduling problem in a make‐to‐stock environment where individual job completion measures are irrelevant. In this case, customer orders are satisfied through on‐hand inventory where customer service is more closely related to the manufacturer's ability to quickly satisfy demand. We consider the role of scheduling in reducing inventories and improving customer service in the context of a manufacturer who assembles several different products on a single assembly line. We develop scheduling rules for such a system and experimentally compare their performance to those typically used in such environments. Our results indicate that rules which consider the inventory position and demand forecast outperform traditional fixed cycle rules.
Variable Royalty Rates for Improving Franchise Channel Coordination*
Authors: Tikoo Surinder , Nair Suresh K.
Published: June 2007

A business format franchisor obtains a major part of its revenues from franchise royalties, which are typically a fixed percentage of franchisee gross sales. When a fixed royalty rate is used and the marginal costs of operating the franchise are increasing, the franchisee does not have an incentive to increase sales beyond a certain “optimal” volume. We present a model that recommends the use of a variable franchise royalty rate for extending this optimal sales volume. For a general convex cost function, we show that a new lower rate can be applied to incremental sales beyond the original optimal level. We show that this new rate should be less than half of the original rate when a quadratic cost function is applicable. Adopting a variable royalty rate increases franchisor royalty revenues and franchisee profits.
Using Autonomous Software Agents to Create the Next Generation of Decision Support Systems*
Authors: Hess Traci J. , Rees Loren Paul , Rakes Terry R.
Published: June 2007

The purpose of this research is to explore the promise of autonomous software agents in Decision Support Systems (DSS). Because definitions of software agents extant in the literature are divergent, we develop and provide a descriptive definition useful for our purpose. The benefits of agents and the particular characteristics of agents leading to DSS enrichment are examined. To facilitate this we build a DSS described elsewhere in the literature and enhance it with different types of autonomous software agents. From this experience, a general framework for agent‐enabled DSS is suggested. It is concluded that such a DSS in general will be more difficult to build than traditional DSS, but at least some agent‐enabled DSS will bring significant benefit to users.
An Integrated Decision Methodology for Designing and Operating an Air‐Express Courier's Distribution Network*
Authors: Leung Lawrence C. , Cheung Waiman
Published: June 2007

DHL, an international air‐express courier, has been operating in Hong Kong for many years. In 1998, the new international airport located at a site considerably distant from the old location opened in Hong Kong (HK). Other airport‐related infrastructure facilities have also been developed or are being developed, resulting in major changes in transport structure as well as a shift in customer demand. In this paper a multiyear distribution network is designed for DHL(HK) using an integrated network design methodology, which consists of a macro model and a micro model. The macro model, a mixed 0–1 LP, determines in an aggregate manner the least‐cost distribution network. The micro model, a simulation, evaluates the operational viability and efficacy of the network according to its service coverage and service reliability. We also illustrate how coverage and reliability can be improved via the integrated use of the two models. Extensive discussion on relevant planning and operational issues of an air‐express courier are included. The methodology has been successfully implemented at DHL(HK). It has been used to design the network, to test strategic decisions, and to update the network.
Measuring Market‐Manufacturing Congruence: Conceptual Reaffirmations and Mathematical Modifications
Authors: Bozarth Cecil C. , Berry William L.
Published: June 2007

Narasimhan and Wang (2000) provide a valuable addition to the research base by identifying a limitation in two of the original equations in Bozarth and Berry (1997), which we resolve, and a possible research direction for the calibration of indifference profiles. However, they fall short in their interpretation of key conceptual and methodological issues, including the distinction between indifference and ideal profiles, the difference between individual profile dimensions and overall congruence, and firm versus industry‐level manufacturing strategy research. We use this opportunity to clear up these points of confusion, and to reaffirm the value of the methodology introduced in Bozarth and Berry (1997).
Decision Making in a Standby Service System*
Authors: Ravinder H. V. , Schultz Carl R.
Published: June 2007

A standby service option allows a firm to lower its risk of not having sufficient capacity to satisfy demand without investing in additional capacity. Standby service options currently exist in the natural gas, electric, and water utility industries. Firms seeking standby service are typically large industrial or institutional organizations that, due to unexpectedly high demand or interruptions in their own supply system, look to a public utility to supplement their requirements. Typically, the firm pays the utility a reservation fee based on a nominated volume and a consumption charge based on the volume actually taken. In this paper, a single‐period model is developed and optimized with respect to the amount of standby capacity a firm should reserve. Expressions for the mean and variance of the supplier's aggregate standby demand distribution are developed. A procedure for computing the level of capacity needed to safely meet its standby obligations is presented. Numerical results suggest that the standby supplier can safely meet its standby demand with a capacity that is generally between 20 to 50% of the aggregate nominated volume.
Workforce‐constrained Preventive Maintenance Scheduling Using Evolution Strategies
Authors: Ahire Sanjay , Greenwood Garrison , Gupta Ajay , Terwilliger Mark
Published: June 2007

Heavy equipment overhaul facilities such as aircraft service centers and railroad yards face the challenge of minimizing the makespan for a set of preventive maintenance (PM) tasks, requiring single or multiple skills, within workforce availability constraints. In this paper, we examine the utility of evolution strategies to this problem. Comparison of the computational efforts of evolution strategies with exhaustive enumeration to reach optimal solutions for 60 small problems illustrates the ability of evolution strategies to yield optimal solutions increasingly efficiently with increasing problem size. A set of 852 large‐scale problems was solved using evolution strategies to examine the effects of task‐related problem characteristics, workforce‐related variables, and evolution strategies population size (μ) on CPU time. The results empirically supported practical utility of evolution strategies to solve large‐scale, complex preventive maintenance problems involving single‐ and multiple‐skilled workforce. Finally, comparison of evolution strategies and simulated annealing for the 852 experiments indicated much faster convergence to optimality with evolution strategies.