FDA Collection:
http://hdl.handle.net/2451/14093
Tue, 13 Sep 2016 01:02:55 GMT2016-09-13T01:02:55Z40.72596-73.998345NYU_OperationsManagementWorkingPapershttps://feedburner.google.comImpact of Exponential Smoothing on Inventory Costs in Supply Chains
http://feedproxy.google.com/~r/NYU_OperationsManagementWorkingPapers/~3/hGeARGWErGQ/34464
Title: Impact of Exponential Smoothing on Inventory Costs in Supply Chains
Authors: Hsieh, Meng-Chen; Giloni, Avi; Hurvich, Clifford
Abstract: It is common for firms to forecast stationary demand using simple exponential smoothing due to the ease of computation and understanding of the methodology. In this paper we show that the use of this methodology can be extremely costly in the context of inventory in a two-stage supply chain when the retailer faces AR(1) demand. We show that under the myopic order-up-to level policy, a retailer using exponential smoothing may have expected inventory-related costs more than ten times higher than when compared to using the optimal forecast. We demonstrate that when the AR(1) coefficient is less than the exponential smoothing parameter, the supplier’s expected inventory-related cost is less when the retailer uses optimal forecasting as opposed to exponential smoothing. We show there exists an additional set of cases where the sum of the expected inventory-related costs of the retailer and the supplier is less when the retailer uses optimal forecasting as opposed to exponential smoothing even though the supplier’s expected cost is higher. In this paper, we study the impact on the naive retailer, the sophisticated supplier, and the two-stage chain as a whole of the supplier sharing its forecasting expertise with the retailer. We provide explicit formulas for the supplier’s demand and the mean squared forecast errors for both players under various scenarios.<img src="http://feeds.feedburner.com/~r/NYU_OperationsManagementWorkingPapers/~4/hGeARGWErGQ" height="1" width="1" alt=""/>Wed, 03 Feb 2016 00:00:00 GMThttp://hdl.handle.net/2451/344642016-02-03T00:00:00Zhttp://hdl.handle.net/2451/34464A Column Generation Algorithm for Choice-Based Network Revenue Management
http://feedproxy.google.com/~r/NYU_OperationsManagementWorkingPapers/~3/j0-HkvL1rKg/27726
Title: A Column Generation Algorithm for Choice-Based Network Revenue Management
Authors: Bront, Juan Jose Miranda
Abstract: In the last few years, there has been a trend to enrich traditional revenue management models built upon the independent demand paradigm by accounting for customer choice behavior. This extension involves both modeling and computational challenges.
One way to describe choice behavior is to assume that each customer belongs to a segment, which is characterized by a consideration set, i.e., a subset of the products provided by the firm that a customer views as options. Customers choose a particular product according to a multinomial-logit criterion, a model widely used in the marketing literature.
In this paper, we consider the choice-based, deterministic, linear programming model (CDLP) of Gallego et al. [6], and the follow-up dynamic programming (DP) decomposition heuristic of van Ryzin and Liu [16], and focus on the more general version of these models, where customers belong to overlapping segments. To solve the CDLP for real-size networks, we need to develop a column generation algorithm. We prove that the associated column generation subproblem is indeed NP-Complete, and propose a simple, greedy heuristic to overcome the complexity of an exact algorithm. Our computational results show that the heuristic is quite effective, and that the overall approach has good practical potential and leads to high quality solutions.<img src="http://feeds.feedburner.com/~r/NYU_OperationsManagementWorkingPapers/~4/j0-HkvL1rKg" height="1" width="1" alt=""/>Mon, 13 Oct 2008 20:26:02 GMThttp://hdl.handle.net/2451/277262008-10-13T20:26:02Zhttp://hdl.handle.net/2451/27726Dynamic Pricing for an M/M1 Make-To-Stock System with Controllable Backlog
http://feedproxy.google.com/~r/NYU_OperationsManagementWorkingPapers/~3/BqFDtC5dvFs/27725
Title: Dynamic Pricing for an M/M1 Make-To-Stock System with Controllable Backlog
Authors: Vulcano, Gustavo<img src="http://feeds.feedburner.com/~r/NYU_OperationsManagementWorkingPapers/~4/BqFDtC5dvFs" height="1" width="1" alt=""/>Mon, 13 Oct 2008 20:19:47 GMThttp://hdl.handle.net/2451/277252008-10-13T20:19:47Zhttp://hdl.handle.net/2451/27725Market Incompleteness and Super Value Additivity: Implications for Securitization
http://feedproxy.google.com/~r/NYU_OperationsManagementWorkingPapers/~3/cfdjk6NhEvU/26284
Title: Market Incompleteness and Super Value Additivity: Implications for Securitization
Authors: Gaur, Vishal; Seshadri, Sridhar; Subrahmanyam, Marti
Abstract: In an incomplete market economy, all claims cannot be priced uniquely based on arbitrage.
The prices of attainable claims (those that are spanned by traded claims) can be determined uniquely, whereas the prices of those that are unattainable can only be bounded. We first show that tighter price bounds can be determined by considering all possible portfolios of unattainable
claims for which there are bid/offer prices. We provide an algorithm to establish these bounds. We then examine how a price-taking agent can “package” new assets in order to take advantage of the incompleteness since the market places a premium on claims that improve its spanning. In particular, we prove that a firm with a new investment opportunity can maximize its value by “stripping away” the maximal attainable portion of the cash flow, for which prices are determined
uniquely, and selling the balance to investors at prices that preclude arbitrage. Our framework has several applications in financial economics to problems ranging from securitization to the valuation of real options.<img src="http://feeds.feedburner.com/~r/NYU_OperationsManagementWorkingPapers/~4/cfdjk6NhEvU" height="1" width="1" alt=""/>Sat, 01 Nov 2003 00:00:00 GMThttp://hdl.handle.net/2451/262842003-11-01T00:00:00Zhttp://hdl.handle.net/2451/26284