Browsing by Subject "Management science"

Now showing 1 - 7 of 7

Open Access
Coordination of staffing and pricing decisions in a service firm
(John Wiley & Sons, 2008) Serel, D. A.; Erel, E.
Customer demand is sensitive to the price paid for the service in many service environments. Using queueing theory framework, we develop profit maximization models for jointly determining the price and the staffing level in a service company. The models include constraints on the average waiting time and the blocking probability. We show convexity of the single-variable subproblem under certain plausible assumptions on the demand and staffing cost functions. Using numerical examples, we investigate the sensitivity of the price and the staffing level to changes in the marginal service cost and the user-specified constraint on the congestion measure.
Open Access
Duality, area-considerations, and the Kalai–Smorodinsky solution
(Elsevier, 2017) Karagözoğlu, E.; Rachmilevitch, S.
We introduce a new solution concept for 2-person bargaining problems, which can be considered as the dual of the Equal-Area solution (EA) (see Anbarcı and Bigelow (1994)). Hence, we call it the Dual Equal-Area solution (DEA). We show that the point selected by the Kalai–Smorodinsky solution (see Kalai and Smorodinsky (1975)) lies in between those that are selected by EA and DEA. We formulate an axiom–area-based fairness–and offer three characterizations of the Kalai–Smorodinsky solution in which this axiom plays a central role. © 2016 Elsevier B.V.
Open Access
An evaluative study of operation grouping policies in an FMS
(Kluwer Academic Publishers, 2003) Sabuncuoǧlu, İ.; Lahmar, M.
The increased use of flexible manufacturing systems to provide customers with diversified products efficiently has created a significant set of operational challenges for managers. This technology poses a number of decision problems that need to be solved by researchers and practitioners. In the literature, there have been a number of attempts to solve design and operational problems. Special attention has been given to machine loading problems, which involve the assignment of job operations and allocation of tools and resources to optimize specific measures of productivity. Most existing studies focus on modeling the problem and developing heuristics in order to optimize certain performance metrics rather than on understanding the problem and the interaction between the different factors in the system. The objective of this paper is to study the machine loading problem. More specifically, we compare operation aggregation and disaggregation policies in a random flexible manufacturing system (FMS) and analyze its interaction with other factors such as routing flexibility, sequencing flexibility, machine load, buffer capacity, and alternative processing-time ratio. For this purpose, a simulation study is conducted and the results are analyzed by statistical methods. The analysis of results highlights the important factors and their levels that could yield near-optimal system performance.
Open Access
Generalized column generation for linear programming
(Institute for Operations Research and the Management Sciences (INFORMS), 2002) Oğuz, O.
Column generation is a well-known and widely practiced technique for solving linear programs with too many variables or constraints to include in the initial formulation explicitly. Instead, the required column information is generated at each iteration of the simplex algorithm. This paper shows that, even if the number of variables is low enough for explicit inclusion in the model with the available technology, it may still be more efficient to resort to column generation for some class of problems.
Open Access
Performance information, production uncertainty, and subjective entitlements in bargaining
(INFORMS, 2015) Karagözoğlu, E.; Riedl, A.
We experimentally explore the effect of performance information and production uncertainties on (i) subjective entitlements derived from the production process and (ii) bargaining over the jointly produced surplus. We hypothesize that performance information and details of the production process affect entitlements, which in turn influence bargaining behavior. We find that, without performance information, subjective entitlements are mostly mutually consistent, and bargaining mainly ends with an equal split. In stark contrast, negotiators derive strong, mutually inconsistent, subjective entitlements when there is performance information. These subjective entitlements affect opening proposals, concessions, and bargaining duration and lead to asymmetric agreements. Moreover, given performance information, endogenous variations in entitlements influence bargaining, suggesting an independent role of subjective entitlements. Production uncertainties influence bargaining, especially when performance information is present, but do not substantially mitigate the effect of entitlements. Theoretical bargaining models allowing for reference points or fairness principles can partly account for the empirical results. Yet, important aspects are left unexplained and our results suggest ways for extending these models. © 2015 INFORMS.
Open Access
The splittable flow arc set with capacity and minimum load constraints
(Elsevier, 2013) Yaman, H.
We study the convex hull of the splittable flow arc set with capacity and minimum load constraints. This set arises as a relaxation of problems where clients have demand for a resource that can be installed in integer amounts and that has capacity limitations and lower bounds on utilization. We prove that the convex hull of this set is the intersection of the convex hull of the set with a capacity constraint and the convex hull of the set with a minimum load constraint.
Open Access
Superimposed event detection by sequential Monte Carlo methods
(IEEE, 2007) Urfalıoğlu, O.; Kuruoğlu, E. E.; Çetin, A. Enis
In this paper, we consider the detection of rare events by applying particle filtering. We model the rare event as an AR signal superposed on a background signal. The activation and deactivation times of the AR-signal are unknown. We solve the online detection problem of this superpositional rare event by extending the state space dimension by one. The additional parameter of the state represents the AR-signal, which is zero when deactivated. Numerical experiments demonstrate the effectiveness of our approach.