HANDBOOK OF QUANTITATIVE SUPPLY CHAIN ANALYSIS: Modeling in the E-Business Era

Transcription

1 HANDBOOK OF QUANTITATIVE SUPPLY CHAIN ANALYSIS: Modeling in the E-Business Era Edited by DAVID SIMCHI-LEVI Massachusetts Institute of Technology S. DAVID WU Lehigh University ZUO-JUN (MAX) SHEN University of Florida Kluwer Academic Publishers Boston/Dordrecht/London

2 Contents Chapter 1 Supply Chain Analysis and E-Business: An Overview 1 David Simchi-Levi, S. David Wu and Z. Max Shen 1. Introduction 1 2. Main Components of the Handbook Emerging Paradigms for Supply Chain Analysis Auctions and Bidding Supply Chain Coordinations in E-Business Multi-Channel Coordination Network Design, IT, and Financial Services Conclusions 9 Acknowledgments 9 Part I Emerging Paradigms for Supply Chain Analysis Chapter 2 Game Theory in Supply Chain Analysis 13 Gérard P. Cachon and Serguei Netessine 1. Introduction Scope and relation to the literature Non-cooperative static games Game setup Best response functions and the equilibrium of the game Existence of equilibrium Uniqueness of equilibrium Multiple equilibria Comparative statics in games Dynamic games Sequential moves: Stackelberg equilibrium concept Simultaneous moves: repeated and stochastic games Differential games Cooperative games Games in characteristic form and the core of the game Shapley value Biform games Signaling, Screening and Bayesian Games Signaling Game Screening Bayesian games 57

3 vi 6. Summary and Opportunities 58 References 59 Chapter 3 Supply Chain Intermediation: A Bargaining Theoretic Framework 67 S. David Wu 1. Introduction Supply Chain Intermediation Supply Chain Intermediary Theory The Basic Settings Mechanism Design and the Revelation Principle Models of Supply Chain Intermediation Bilateral Bargaining with Complete Information Bilateral Bargaining to Divide the System Surplus A Bilateral Supply-Chain Bargaining Model The Subgame Perfect Equilibrium Analysis of the Bargaining Game Intermediary s Role in Price Setting, Searching, and Matching Bilateral Bargaining with Incomplete Information The Basic Setting The Direct Revelation Mechanism Multilateral Trade with Incomplete Information Multilateral Trade with Vertical Integration Multilateral Trade with Markets Related Work in the Supply Chain Literature and Research Opportunities 105 References 112 Chapter 4 Decentralized Decision Making in Dynamic Technological Systems: The Principal-Agent Paradigm 117 Stefanos Zenios 1. Background and Motivation The Static Principal-Agent Model The Dynamic Principal-Agent Model The Principal s Problem Step 1: The Static Problem Step 2: The Dynamic Problem A Model with Multiple Agents A Production-Inventory System A Service Delivery System The Past and the Future Concluding Remarks 138 Acknowledgments 138 References 139 Part II Auctions and Bidding Chapter 5 Auctions, Bidding and Exchange Design 143

4 Contents vii Jayant Kalagnanam and David C. Parkes 1. Introduction A framework for auctions Outline Economic Considerations Preliminaries Mechanism Design Competitive Equilibrium Indirect Revelation Mechanisms Implementation Considerations Bidding Languages Winner-Determination Complexity Interactions between Computation and Incentives Strategic Complexity Communication Complexity Valuation Complexity Implementation Complexity Specific Market Mechanisms Combinatorial Auctions Multi-unit Auctions Multiattribute Auctions Procurement Reverse Auctions Capacity constrained allocation mechanisms Double Auctions and Exchanges Discussion 200 References 204 Chapter 6 Auctions and Pricing in E-Marketplaces 213 Wedad Elmaghraby 1. B2B E-Marketplaces Current State of Pricing in B2B Marketplaces Customizing Auctions - A Case Study of FreeMarkets Auction Formats Combating Collusion Bidder Support in Auctions - Manugistics NetWORKS Target Pricing T M Future Directions for Research in Auction Theory Precision Pricing - Manugistics Networks Precision Pricing Future Directions for Research in Price Discrimination Conclusion 240 References 243 Chapter 7 Design of Combinatorial Auctions 247 Sven de Vries and Rakesh V. Vohra 1. Introduction Mechanism Design Perspective Optimal Auctions Efficient Auctions The VCG Auction 255

5 viii 5. Implementing an Efficient Auction Winner Determination Supposed Problems with VCG Ascending Implementations of VCG Threshold and Collusion Problems Other Ascending Auctions Complexity of Communication Interdependent Values Two Examples The German UMTS-Auction Logistics Auctions 284 References 287 Part III Supply Chain Coordinations in E-Business Chapter 8 The Marketing-Operations Interface 295 Sergio Chayet, Wallace J. Hopp and Xiaowei Xu 1. Product Development Conjoint Analysis For Concept Development System Level and Detailed Design Prototyping and Testing Macro-Level Research Sales Pricing Lead Time Quoting Quality Management Product Variety Production/Delivery Service Previous Research Research Opportunities Conclusions 319 References 322 Chapter 9 Coordination of Pricing and Inventory Decisions: A Survey and Classification 335 L. M. A. Chan, Z. J. Max Shen, David Simchi-Levi and Julie L. Swann 1. Introduction Motivation Scope Classification and Outline Single Period Models Multiple Period Models Models to Explain Price Realizations General Pricing and Production Models Retail, Clearance, and Promotion Fixed Pricing Extension Areas Multiple Products, Classes, and Service levels Capacity as a Decision 366

6 Contents ix 4.3 Supply Chain Coordination Competition Demand Learning and Information Industry Dynamic Pricing Practice Related Research Price Discrimination in Practice Potential problems with Dynamic Pricing Conclusions and Future Research 379 References 382 Chapter 10 Collaborative Forecasting and its Impact on Supply Chain Performance 393 Yossi Aviv 1. Notation and Preliminaries Common Approaches for Modeling Demand Uncertainty and Forecast Evolution in the Inventory Management Literature Demand models with unknown parameters A Markov-modulated demand process A linear state-space model Common Types of Single-Location Inventory Control Policies Dynamic models for inventory management Heuristic policies An adaptive replenishment policy for the linear statespace model Models for Decentralized Forecasting Processes The orders generated by the retailer Enriched information structures Assessment of the benefits of information sharing An inventory model of collaborative forecasting Installation-based inventory systems Echelon-based inventory systems Cost analysis Cost assessment Policy coordination in the supply chain Decoupled two-level inventory systems Results from the study of CF Summary 442 References 443 Chapter 11 Available to Promise 447 Michael O. Ball, Chien-Yu Chen and Zhen-Ying Zhao 1. Introduction Push-Pull Framework Available to Promise (ATP) Business Examples Overview of Conventional ATP Toshiba Electronic Product ATP System Dell Two-stage Order Promising Practice Maxtor ATP Execution for Hard Disk Drive ATP Functionality in Commercial Software ATP Modelling Issues 455

7 x 3.1 ATP Implementation Dimensions Factors Affecting ATP Implementations Push vs. Pull ATP Models Push-Based ATP Models Push ATP Rules and Policy Analysis Deterministic Optimization-Based Push ATP Models Stochastic Push ATP Models Pull-Based ATP Models Pull-Based ATP Models for an MTS Production Environment Real Time Order Promising and Scheduling Optimization-Based Batch ATP Models Experimental Implementation Conclusions 480 Acknowledgments 480 References 481 Chapter 12 Due Date Management Policies 485 Pınar Keskinocak and Sridhar Tayur 1. Characteristics of a Due Date Management Problem Due Date Management Decisions Dimensions of a Due Date Management Problem Objectives of Due Date Management Solution Approaches for Due Date Management Problems Scheduling Policies in Due Date Management Offline Models for Due Date Management Equal Order Arrival Times Distinct Order Arrival Times Online Models for Due Date Management Due-Date Setting Rules Choosing the Parameters of Due Date Rules Mathematical Models for Setting Due Dates Due Date Management with Service Constraints Due Date Management with Price and Order Selection Decisions Due Date Management with Order Selection Decisions (DDM-OS) Due Date Management with Price and Order Selection Decisions (DDM-P) Conclusions and Future Research Directions 542 References 547 Part IV Multi-Channel Coordination Chapter 13 Modeling Conflict and Coordination in Multi-channel Distribution 557 Systems: A Review Andy A. Tsay and Narendra Agrawal 1. Introduction Business Setting 557

8 Contents xi 1.2 Scope of Discussion Contribution Related Literature Descriptive research Analytical research Analytical Research on Conflict and Coordination in Multi- Channel Systems With Both Manufacturer-Owned And Intermediated Channels Manufacturer-owned channel is direct sales Manufacturer-owned channel contains physical stores Discussion Research Opportunities Representing channel characteristics Evaluating distribution strategies Concluding remarks 595 Acknowledgments 595 References 597 Chapter 14 Supply chain structures on the Internet and the role of marketingoperations interaction 607 Serguei Netessine and Nils Rudi 1. Introduction Literature survey Notation and modeling assumptions Supply chain models without coordination Model I - vertically integrated supply chain Model T - traditional supply chain Model D drop-shipping Comparative analysis of the stationary policies Supply chain coordination Numerical experiments Conclusions and discussion 636 References 639 Chapter 15 Coordinating Traditional and Internet Supply Chains 643 Kyle D. Cattani, Wendell G. Gilland and Jayashankar M. Swaminathan 1. Introduction Overview of Research Procurement Pricing Distribution / Fulfillment Procurement Coordinating Traditional and Internet Procurement Formation of Consortia Pricing Independent Competition Bricks and Clicks Forward Integration Full Integration Distribution / Fulfilment 668

9 xii 4.1 Direct channel as outlet Direct channel as Service buffer Conclusion 674 References 675 Part V Network Design, IT, and Financial Services Chapter 16 Using a Structural Equations Modeling Approach to Design and Monitor Strategic International Facility Networks 681 Panos Kouvelis and Charles L. Munson 1. Introduction A conceptual framework to Classify Global Network Structures Literature Review Research Contributions Structural Equations Model Problem Statement Motivation for the Structural Equations Modeling Approach Framework Measures (Independent Variables) Proxies for the Global Network Structure Dimensions (Dependent Variables) Model Development Model Validation Other Products Government Incentives: Tax Holidays and Subsidized Loans Conclusion 701 Acknowledgments 702 Appendix: MIP Model for Facility Location 702 References 708 Chapter 17 Integrated Production and Distribution Operations: Models, and Review Taxonomy, 711 Zhi-Long Chen 1. Introduction Model Classification Production - Transportation Problems Joint Lot Sizing and Finished Product Delivery Problems Joint Raw Material Delivery and Lot Sizing Problems General Tactical Joint Job Processing and Finished Job Delivery Problems Directions for Future Research 732 Acknowledgments 734 References 735 Chapter 18 Next Generation ERP Systems: Scalable and Decentralized Paradigms 747 Paul M. Griffin and Christina R. Scherrer 1. Introduction 747

10 Contents xiii 2. A Brief History Current ERP Functionality Implementation Issues Scalability and ERP New Developments in Enterprise Scalability Standards in ERP Decentralized ERP e-market Intermediaries Outsourced ERP Systems Current Enterprise Issues: ERPII and ECM Conclusions 775 References 778 Chapter 19 Delivering e-banking services: An emerging internet business model and a case study 783 Andreas C. Soteriou and Stavros A. Zenios 1. Introduction The changing landscape of demand for financial services The changing landscape of supply of financial services An Emerging e-banking Model The design of a web-based personal asset allocation system The integrated decision support system Business plan for the deployment of the system Bringing it altogether: Lessons from the implementation of the system Concluding Remarks 802 References 803 Index 805