Cluster: e-Business: Integrating Academic and Industrial Perspectives
Grace Lin, Senior Manger, IBM T.J. Watson Research Center, 1101 Kitchawan Road, Route 134, Yorktown Heights, New York 10598, firstname.lastname@example.org Michael J. Shaw, Leonard C. Hoeft Distinguished Professor, University of Illinois at Urbana-Champaign, Urbana, Illinois 61801, email@example.com
Session 1: e-Business Research
Chair: Michael J. Shaw, University of Illinois at Urbana-Champaign, 350 Wohlers Hall, Champaign IL 61820, firstname.lastname@example.org
1. Improving Ability to React to Forecast Variation through Product Design in a Highly Customized Product Environment, Suresh Chandar Kalathur, James Shen and John Liang, Motorola Inc. Abstract Product designs with higher level of commonality at core functions, sub-assemblies separated from customizable software and cosmetic functions enable the manufacturers to react better to variations in forecasts. Forecasting demands in a highly customized consumer product environment is extremely difficult due to lack of history and data for predicting customer behavior. Product designs with high commonality of core functions through high level of commonality in sub-assemblies, component parts, along with postponable processes enable manufacturers to customize products deliver to consumers with benefits of reduced cycle time, higher fill rate at lower inventory levels. Developing metrics to measure product complexity helps the product design process to focus on enabling the benefits. 2. Modularized Interoperability in Supply-chains: A Co-adoption Study of RosettaNet’s XML-based Inter-organizational Systems, Matthew L. Nelson, University of Illinois, email@example.com and Mary Schoonmaker, RosettaNet, Michael J. Shaw, University of Illinois, firstname.lastname@example.org. Abstract The factors that influence an organization’s decision to begin using a certain type of technology have come under much study. Several theoretical models, commonly referred to as technology diffusion models, have been developed to better understand the role of these factors in the adoption, diffusion and infusion of certain types of technology. A theoretical framework is proposed to assess the influential factors leading toward adoption and internal diffusion of the target technology. The factors under study include compatibility, relative advantage, environment and three control variables (seller versus buyer, technology conversion type, and location in supply chain). 3. The Value of The Mobile Technologies to Enhance Business-to-Business Applications, Judith Gebauer, email@example.com, Michael J. Shaw, firstname.lastname@example.org and Dean Haacker, Motorola Inc., Dean.Haacker@motorola.com Abstract In this paper, we propose a two-step framework to advance our knowledge of how to identify and evaluate opportunities presented by emerging information technologies (IT). As a first step, we match the features and limits of the IT innovation with the requirements of the application areas in question, typically on the business process level. As a second step, we sketch out guidelines to evaluate these windows of opportunity in a quantitative way. To further explain the framework and showcase its applicability, we provide a proof-of-concept case study, reporting on the application of wireless technologies to enhance an electronic procurement application at Motorola, Inc.
Session 2: E-Commerce: Price, Contract and Supply Chain Management
Chair: Han Zhang, The DuPree College of Management, Georgia Institute of Technology, 755 Ferst Drive, Atlanta, GA 30332, (404) 894-4373
1. Pricing Content for Multiple Digital Channels, Kerem Tomak and Ranjan Dutta, Red McCombs School of Business, The University of Texas at Austin Abstract Digital payments are defined as payments which are carried out via a digital channel. In this paper, we study the following research question: For digital content, among prepay, micro-payments and aggregation to the phone bill or ISP bill, which payment method is strategically desirable for the firms? 2. Contracting for ASP Outsourcing: A Real Options Approach, Yanjun Sun and D.J. Wu, LeBow College of Business, Drexel University Abstract ASP is a recently introduced business model that aims to share some of the IT functions with the associations. However, it cannot replace traditional acquisition model due to complexity of outsourcing. We use a real options approach to analyze optimal contracting strategies for ASP outsourcing based on a stylized model. 3. Information Exchange and Business-to-Business Collaborations: Implications for Supply Chain Management, Kevin Zhu, Graduate School of Management, University of California, Irvine Abstract Focusing on the informational effects of collaboration networks, we built a gametheoretic model to explore suppliers' incentives to join such a B2B network. We found that vertical information sharing tends to be beneficial, while horizontal information transmission seems to be a double-edged sword, reflecting the tradeoff between transparency and confidentiality.
Session 3: Analysis of System or Mechanism in Electronic Markets
Chair: Han Zhang, The DuPree College of Management, Georgia Institute of Technology, 755 Ferst Drive, Atlanta, GA 30332, (404) 894-4373
1. Evaluating The Impact of Plant-level e-Commerce Systems on Manufacturing Plant Performance and Productivity: An Empirical Analysis, Rajiv D. Banker, Indranil Bardhan and Hsihui Chang, School of Management, The University of Texas at Dallas Abstract We evaluate the impact of IT investments on the efficiency of manufacturing plants. A longitudinal analysis of 1500 manufacturing plants is conducted to evaluate the impact of plant-level e-business investments on performance. We study the impact of different manufacturing practices on the choice of plant-level IT investments and evaluate efficiency improvements for different types of manufacturing strategies. 2. Analysis of a Hybrid Catalog/Auction Mechanism in Online Auction, Vernon N. Hsu, School of Management, George Mason University, and Ke Fu, Department of Industrial Engineering and Engineering Management, Hong Kong University of Science and Technology Abstract We study a new online auction mechanism that combines features of catalog and auction. We use both modeling and empirical study approaches to analyze this new form of online market. Issues such as seller and buyer behavior, and pricing mechanism will be discussed. 3. The Effect of Feedback System on Electronic Market, Xiaorui Hu, John Cook School of Business, Saint Louis University; Jian Yang, Department of Industrial and Manufacturing Engineering, New Jersey Institute of Technology; Han Zhang, DuPree College of Management, Georgia Institute of Technology
Abstract A model for the mechanism of a feedback system on e-market is formulated. Comparison between both buyer and seller’s long-term expected gains is presented. The results demonstrate that the existence of a feedback system on a website benefits both buyers and honest sellers.
Session 4: Impact of New IS Capabilities on the Structure of B2B Relationships
Co-Chairs: C. Schlueter Langdon, University of Southern California, and R. Sikora, University of Illinois at Urbana-Champaign
1. Web Services: The Next Big Thing? – An Exploratory Analysis of Web Services Capabilities, Wu, C., and C. Schlueter-Langdon Abstract Web services (WS) vendors promise that WS-based IS can more easily facilitate interaction across systems than current technology. However, many issues remain unsolved and are investigated in a qualitative study: What exactly is a WS or how to define it as a unit of analysis? How does a WS as an IT innovation affect IS capabilities? 2. Inter-organizational IS and Relational Value, Saraf, N. and C. Schlueter Langdon Abstract Inter-organizational IS influence how valued is derived from relationship networks. We measure network relational value as benefits from exploiting interdependencies across relationships. Using knowledge sharing as a mediating variable we investigate how three types of IS capabilities affect the creation of relational value. The research model is being tested in the communications and high-tech industry. 3. Recognizing Interaction Effects in IS Research: Complementing IS Research Methodology, Schlueter Langdon, C., R. Sikora, and M. J. Shaw Abstract Many IS research problems, such as IT standardization and the alignment of IS and business strategy, exhibit interaction effects. Increased market volatility and accelerated rate of IT innovation require an understanding of the dynamics of interaction effects. In order to investigate these effects we propose to complement formal modeling methods with new analytic modeling techniques.
Session 5: Internet Auctions
Chair: Robert F. Easley, University of Notre Dame
1. Consumer Heterogeneity in Online Auctions: Longitudinal and Learning Effects, Ravi Bapna, Paulo Goes, Alok Gupta and Yiwei Jin, University of Minnesota Abstract Much of the traditional auction theory, as well as some recent work in online auctions, focuses on how the auctioneer's (bid-taker) expected revenue depends upon the bidding rules. We contend that it is equally important to understand how bids are made, what bidding strategies are adopted and why. 2. About How Much Can You Sell This For, More or Less? An Empirical Investigation of Price Stability in Online Auctions, Charles A. Wood, University of Notre Dame Abstract Variance analysis empirical techniques are used to explore the stability of prices for items sold in online auctions. Different factors (e.g., reputation scores, pictures, sale timing, condition, and book value) are examined to determine to variance around average price that rare coins trade for in Internet auctions. 3. A Comparison of Auction-based Markets and Bilateral Network Exchanges, Ming Fan, University of Washington Abstract This research will use a game theoretical approach in modeling the strategic interactions of electronic markets, buyers, and suppliers. Buyers and suppliers can either
conduct bilateral trade or participate in a central market. We analyze different competitive equilibriums and their respective conditions.
Session 6: Managing Demand in Supply Chains
Chair: Joseph Geunes, ISE Department, University of Florida
1. Production Planning with Order Selection Flexibility, Joseph Geunes, H. Edwin Romeijn and Kevin Taaffe, University of Florida, Department of Industrial and Systems Engineering, email@example.com Abstract We consider a producer that accepts or denies orders for its output, based on the economic benefits of order acceptance and production capacity limits. The producer collects revenue for each unit sold, and revenue can vary among orders. Our models maximize net profit from order selection and production planning decisions. 2. Markdown Mechanisms, Wedad Elmaghraby, Altan Gulcu and Pinar Keskinocak, ISyE, Georgia Institute of Technology, firstname.lastname@example.org Abstract The Internet provides tremendous opportunities for implementing dynamic pricing mechanisms. In this paper, we analyze the design and performance of a markdown pricing mechanism, which is a form of dynamic pricing. Our focus is the structure of the optimal markdown mechanisms in the presence of rational or “strategic” buyers. 3. Production and Outsourcing Decisions for Competing OEMs with Cost Reduction Opportunities, Stephen M, Gilbert and Yusen Xia, The University of Texas at Austin, RedMcCombs School of Business, email@example.com Abstract We examine the production and outsourcing decisions for two OEMs that produce partially substitutable products and have opportunities to invest in cost reduction. Specifically, we investigate the way in which outsourcing can dampen the intensity of competition between the OEMs and the conditions under which they can benefit from outsourcing at least a portion of their manufacturing activities to a common supplier. 4. A Customer Allocation Problem with Subcontracting and Capacity Acquisition, H. Edwin Romeijn, Wei Huang and Joseph Geunes, University of Florida, Department of Industrial and Systems Engineering, firstname.lastname@example.org Abstract Consider a set of capacitated production and storage facilities and a set of customers facing deterministic demand for a single product. We propose heuristics for the problem of assigning customers to facilities to minimize total production, inventory, and transportation costs. We also study extensions allowing for subcontracting and capacity acquisition.
Session 7: Modeling Business-to-Business Relationships in E-Commerce
Chair: Rachel B. Yang, University of Illinois, email@example.com
1. Paid Placement Strategy for Information Gatekeepers, Juan Feng, Hemant Bhargava, Pennsylvania State University, firstname.lastname@example.org Abstract Recently, information gatekeepers such as search engines, comparison shopping sites have begun implementing "paid placement" strategy, where some content providers are given prominent positioning for a fee. We analyze the gatekeeper's tradeoff between paid placement revenue and the potential loss from its biasness. Competition between two gatekeepers is also studied. 2. Modeling the Impact of Smart Packaging on Channel Participants, Kwaneng Wee, College of Commerce and Business Administration, University of Illinois at UrbanaChampaign, email@example.com, and Ananth Iyer, Krannert Graduate School of Management, Purdue University
Abstract We consider the benefit of Smart Packaging in a one-manufacturer-one-retailer distribution channel. The manufacturer can choose to (a) invest in this technology or not, and (b) share this information with the retailer or not. We study how these different information levels impact the pricing strategy and the corresponding profit for both manufacturer and retailer. 3. Vendor Selection through Online Dynamic Bidding, Y. Stephen Chiu, The Chinese University of Hong Kong, and Rachel B. Yang, University of Illinois, firstname.lastname@example.org Abstract Selecting vendors through online dynamic bidding is a reverse auction by a single buyer awarding a business contract to several competing vendors. This paper addresses its distinct features not existing in a regular auction where multiple buyers bid to buy from a single seller: such as a lower bid bound and contract holdup. 4. Outside Option, Bargaining Power, and e-Marketplaces, Rachel B. Yang, University of Illinois, email@example.com, and Y. Stephen Chiu, The Chinese University of Hong Kong Abstract Whether a firm’s participation in e-Marketplaces enhances or diminishes its bargaining power with its supply chain partners depends on whether the commitment is reversible and the e-Market acts as a threat point, or the commitment is irreversible and the eMarket acts as an outside option.
Session 8: Quantitative Modeling – A Profit Enhancement Machine
Chair: Rajiv Saxena, Menlo Worldwide Technologies, One Lagoon Drive, Suite 300, Redwood City, CA 94065; firstname.lastname@example.org
1. Supply Chain Redesign to Achieve Asset Reduction, Steve Hill, Menlo Worldwide Technologies, email@example.com Abstract Tight credit markets and short product life cycles make it more important than ever to minimize inventory investments. This presentation will describe techniques for redesigning supply chains to make them asset light, yet responsive to requirements for product variety and short order cycles. 2. Considering Risk and Uncertainty in Managing Supply Contracts, Markus Ettl, Feng Cheng and Grace Lin, IBM T.J. Watson Research Center, firstname.lastname@example.org; David Yao, Columbia University Abstract We develop a framework that describes the effect of contract terms and conditions on managing supply chain risk. The model considers the efficiency of the whole supply chain, and the distribution of gains between buyers and suppliers. We discuss how each party should behave in contract negotiations by numerically investigating the impact of contract parameters such as base price, risk premium, and quantity flexibility. We develop conditions for a win-win situation (equilibrium solution) where both manufacturer and supplier are better off than in a traditional newsvendor setting. 3. Planning Pharmaceutical Manufacturing Strategies in an Uncertain World, William C. Brastow, Jr., Applied Decision Analysis, Standard and Poor’s, 68 Willow Road, Menlo Park, CA 94025, email@example.com; Craig Rice, Genentech, 1 DNA Way, South San Francisco, CA 94080, firstname.lastname@example.org Abstract We describe a model characterizing the impact of pharmaceutical development, demand and manufacturing uncertainties on a given manufacturing strategy using a hierarchical simulation with embedded heuristic optimization. We also discuss how the model was used at a major biotech company to increase executive confidence in various manufacturing capacity expansion strategies.
Session 9: Information and Optimization in Supply Chain Management
Chair: Markus Ettl, IBM T.J. Watson Reserach Center, PO Box 218, Yorktown Heights, NY 10598, email@example.com
1. Supply Chain Collaboration: Breakthrough Value Creation Opportunities, Rajiv Saxena, Director, Strategic Solutions Development, Menlo Worldwide Technologies, firstname.lastname@example.org Abstract Menlo Worldwide has been aggressively pursuing collaborative supply chain solutions involving partners either within a, or across multiple supply chains to create a level of value not possible to achieve in traditional non-collaborative scenarios. We will discuss key initiatives and the level of value they offer to collaboration partners. 2. Optimization of Production Planning and Scheduling for Semiconductor Manufacturing, Brian Denton, IBM Microelectronics Division, 69B Center Road, Essex Junction, VT 05452, email@example.com Abstract OR methods are used extensively for decision support of production planning in IBM's Microelectronics Division. We describe the practical application of linear programming and heuristics to optimization of large-scale extended enterprise supply-chains in semiconductor manufacturing. Model structure specific to this application is described, and computational experience and future directions are discussed. 3. (TBD), Alexander O. Brown, Xilinx, 2100 Logic Drive, San Jose, CA 95124, firstname.lastname@example.org Abstract 4. (TBD), Jeff Flammer, Director, High Tech Strategy, Manugistics, 901 San Mariner’s Island Blvd, San Mateo, CA 94404 Abstract
Session 10: Performance Analysis and Optimization in e-Business
Chair: Yingdong Lu, IBM T.J. Watson Research Center, email@example.com
1. On Measuring Supplier Performance under Vendor-Managed-Inventory Programs, KiSeok Choi, firstname.lastname@example.org and J. Dai, email@example.com, School of IsyE, Georgia Institute of Technology; J. Song, firstname.lastname@example.org, Graduate School of Management, University of California at Irvine Abstract As a widely accepted performance measure, service level is often used in supplier contracts in VMI programs. While this measure of supplier performance is sufficient in a supplier-retailer setting, we show that it is not necessarily so in a supplier-manufacturer setting. We propose alternative measures. 2. Traffic Modeling and Profiling for e-Commerce Web Sites, Zhen Liu, Mark S. Squillante, Cathy H. Xia, Shun-Zheng Yu and Li Zhang, IBM T.J. Watson Research Center, Yorktown Height, NY 10598 Abstract The problems of workload characterization, performance modeling, workload/performance forecasting and capacity planning are fundamental to the growth of eBusiness services and applications. Previous studies have primarily focused on the complexity of Web traffic at the level of hits/page-views. In contrast, our study focuses on higher-level characteristics, and introduces techniques for profiling, clustering and classification of Web site traffic. In particular, we devise novel techniques for efficient and automated extraction of Web traffic patterns from access logs, for efficient and automated clustering of such traffic patterns, and for efficient and automated classification of Web traffic based on the extraction and clustering of traffic templates. Our approach has been validated against a number of existing commercial Web sites. These methods provide new
solutions to solve the challenging problems such as workload/performance prediction, and short-term and long-term capacity planning. 3. Optimization Analysis for Online Selling Modes, Frank. Y. Chen and Y. Feng, Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong; Sha Tin, N.T., Hong Kong Abstract Consider a firm selling a product on the Internet over a fixed time period. The distribution of potential customer's reservation price may change over time. The firm may sell multiple units of the product through either posted pricing or online auction, or combination of both. In this study we consider two models. In Model 1 the firm starts with a posted price and then switches to an online auction. In Model 2 the firm announces a buyout price and a reserved price for end-season auction. The optimization analysis provides with the best operational parameters for obtaining maximum revenue for the selling firm in each model. 4. Rebate, Returns, and Price Protection Polices in Supply Chain Coordination, Xiangwen Lu, Institute of Transportation Studies, University of California, Irvine, CA 92697, email@example.com; Jing-Sheng Song, Graduate School of Management, University of California, Irvine, CA 92692, firstname.lastname@example.org; Amelia Regan, Department of Civil and Environmental Engineering and Graduate School o Management, University of California, Irvine, CA 92697, email@example.com Abstract We study channel coordination policies for products subject to price drops during their short product life cycles. For systems with one purchase opportunity, we identify winwin policies. For systems with two purchase opportunities, we show that a win-win policy may not exist if holding and loss-of-goodwill costs are considered.
Session 11: Aspen MIMI Demand Management, Supply Chain Planning, Scheduling and Capable-to-Promise Implementations
Chair: Ann Bixby, Aspen Technology, Unit 1 Century Court Tolpits Lane, Watford WD18 9PT, United Kingdom, Ann.Bixby@aspentech.com
1. Before Supply Chain Planning: Demand Management, Curtis Schultz, Aspen Technology, firstname.lastname@example.org Abstract Supply chain planning LP models are used in the process industry in a variety of ways, but many times they are used to do high-level supply/demand balancing. So while it is important that these models accurately reflect the constraints of supply, it is just as important that the demand being modeled accurately reflects the business. This presentation will introduce concepts around demand management by discussing the processes and tools some businesses are using today. 2. Designing and Implementing a Supply Chain Planning System for Chevron Oronite, SA, Ileana Krumme, Decision Support Team Leader, ChevronTexaco Information Company, email@example.com, P.O.Box 5032, San Ramon, CA 94583; Jean-Philippe Mazo, MAZO@chevrontexaco.com, Supply Chain Team Leader, Chevron Oronite, SA. B.P. 7014 X 76080 Le Havre Cedex, France Abstract We describe the implementation of a supply chain planning system for Chevron Oronite, a chemical specialty company with over $250MM in annual sales. We discuss specific challenges, ranging from understanding user requirements, to efficient modeling, to efficient testing, to cultural issues. The system is currently in production, and is estimated to have saved $2MM in direct costs (reduced inventories, reduced transportation, etc.). In addition, it saved $1MM in intangible costs. 3. Linear and Integer Programming Based Scheduling Models for Optimal Beef Production at ConAgra Foods, Ann Bixby, firstname.lastname@example.org, Brian Downs,
email@example.com, Betty Peng, firstname.lastname@example.org, and Balaji Viswanathan, email@example.com, Aspen Technology; Mike Self, ConAgra Foods Abstract We will discuss linear programming and mixed integer programming-based scheduling models for beef production. These Aspen MIMI models include scheduling of boxed beef production, offal production, and ground beef blending. The models minimize costs while satisfying as many orders and forecast demands possible, subject to product age requirements and other production constraints. 4. An LP-Based Capable-to-Promise System for Beef Production at ConAgra Foods, Brian Downs, firstname.lastname@example.org, Ann Bixby, email@example.com, Betty Peng, firstname.lastname@example.org, Balaji Viswanathan, email@example.com, Corbin Porter, firstname.lastname@example.org, and Paul Homchick, email@example.com, Aspen Technology; Mike Self, ConAgra Foods Abstract We will discuss a linear programming-based capable-to-promise system in Aspen MIMI. The system handles several types of transactions, including new order commits, availability queries, changes to orders, and order deletions. The system is capable of reallocating inventory and/or altering the production schedule on the fly to fulfill orders.
Session 12: e-Business Performance Optimization
Co-Chairs: Ramesh Srinivasan, Aankhen Inc., firstname.lastname@example.org and John Konopka, IBM Integrated Supply Chain, email@example.com
1. Applying Hierarchical Data Modeling to Optimization Problems, Pedro de Souza, firstname.lastname@example.org, Director of Product Management, Vitria Technology, Inc., and Assia Abada, Assia_Abada@i2.com Abstract This talk presents how optimization and hierarchical data modeling can leverage each other for solving complex problems. The mathematical model becomes as concise as the hierarchical data model being used, making the problem modeling more intuitive for a business user. A solution for the Demand-Supply Matching Problem for e-marketplaces will be presented. 2. Role of e-Business Transaction Standards in Supply Chain Efficiency, Ramesh Srinivasan, VP of Business Engineering, Aankhen Inc., 1735 N. First St., Suite 306, San Jose, CA 95112 Abstract We provide a review of the evolution of e-Business transaction standards, their extent of adoption in the high-tech industry, and potential for contribution to supply chain efficiency. We look at current inhibitors for ROI from such implementations and ways to open up enormous opportunities for supply chain efficiency. 3. (TBD), John Konopka, IBM Integrated Supply Chain, email@example.com Abstract 4. (TBD), Tom Ervolina, IBM T.J. Watson Research Center, firstname.lastname@example.org Abstract
Session 13: Storage Services Management Models in e-Business
Chair: Kyle D. Chen, IBM Almaden Research Center, email@example.com
1. Effective Service Level Agreement Designs for Storage Service Providers and Data Centers, Kyle Chen, IBM Almaden Research Center Abstract We present a framework of dynamic storage resource sharing and provisioning to allow effective designs of Service Level Agreements between the customers and the Storage Service Providers & Data Centers. Particularly, we demonstrate an optimization model that can assist in making decisions on committing how much storage resources to customers.
2. Optimization Model for Storage Service based on Quality of Service (QoS), T. Paul Lee, IBM Almaden Research Center Abstract In our storage service optimization model, the quality measure is the sojourn times of individual I/O requests. The provider tries not to over-commit its service capacity, while the customer can verify the guaranteed quality of service. The service guarantee is quantified as rebates to customers, depending on the actual QoS. 3. Managing Network Attached Storage Systems Employing Statistical Procedures, Lance Russell, IBM Almaden Research Center Abstract This paper presents an analysis of the impact of web-based workloads upon network-attached storage (NAS). Actual loads and how these translate into NFS operations per file are analyzed. A statistical model that configures the assignment of files to partitions is constructed. The model's response to variable workloads is reviewed.
Session 14: e-Business Strategies for Virtual Enterprise Forms: Identifying and Selecting Potential Outsourcing and Insourcing Opportunities
Chair: Bill Tulskie, IBM T.J. Watson Research Center, firstname.lastname@example.org
1. Transactions Costs as a Determinant of Outsourcing and Online Provisioning – Theory and Practice, Tom Brush, Purdue University, Bill Tulskie, IBM, and Derek Ruth, Purdue Abstract 2. e-Marketplace Services – An Outsourcing Alternative Composing an Investment Portfolio from Among Many Opportunities, Tom Brush, Purdue University, Bill Tulskie, IBM, and Derek Ruth, Purdue Abstract
Session 15: Diagnosis and Resolution of e-Business Problems
Chair: Steve Buckley, IBM T.J. Watson Research Center, email@example.com
1. Impact Analysis of e-Business Metrics and Policies, Kaan Katircioglu, IBM T.J. Watson Research Center Abstract We will present a tool called DIAT (Driver Impact Analysis Tool) that is used to quantify the impact of various supply chain parameters (such as forecast error, cycle time uncertainty etc.) on supply chain operational performance. We will present a simple assembly manufacturing problem and show how the tool is used to quantify the impact, to do sensitivity analysis, and to calculate product and component inventory policies that can maximize inventory turns. 2. The Active Management Approach to e-Business Management, Opher Etzion, IBM Haifa Research Lab Abstract Business processes can go wrong because due to process problems or problems in the IT infrastructure (applications, resources). The active management approach includes several parts: knowledge modeling, detection points discovery, run-time detection of interesting situation within contexts, notification to subscribers using visualization means, and proactive reasoning to find the best possible alternative to resolve the problem. 3. Process Warehousing: Is It The Last Missing Puzzle in e-Business Process Management? Josef Schiefer, IBM T.J. Watson Research Center Abstract As efficiency, accuracy, transparency and flexibility of e-business processes have become fundamental for process reengineering programs, paying attention to accurate and comprehensive process analysis is the basis for reengineering decision making. A process warehouse opens a wide area of applications (discovery of workflow bottlenecks, evaluation
of education programs, assessment of innovation initiatives, rating of business partners etc.) and enables organizations to analyze comprehensive information on e-business processes. 4. Expert e-Business Troubleshooting, Steve Buckley and Shubir Kapoor, IBM T.J. Watson Research Center; Doug Fiesel, IBM eServer Marketing Abstract We have developed an expert system called SEAS to diagnose e-business problems and recommend solutions. It shows customers the relationship between their business problems and the IT solutions available. It gives salespeople a wide range of knowledge that would be difficult to acquire through training. It also estimates ROI.
Session 16: Optimization Models in e-Marketplaces
Chair: Gyana R. Parija, IBM T.J. Watson Research Center, firstname.lastname@example.org
1. Online Haggling and Price-Discrimination in a Name-your-own-price Channel: Theory and Application, Sergei Savin, Columbia Business School, email@example.com; Il-Horn Hann, GSIA, Carnegie Mellon University; Christian Terwiesch, The Wharton School Abstract The emergence of the Internet and its extensive usage for electronic commerce has given companies the opportunity to experiment with a number of innovative pricing models. A well-known example of these new pricing models is the concept of name-your-own-price models. Based on detailed transaction data of a large reverse buying site, we compare different decision rules for the seller and compare their financial implications. 2. e-Marketing to Physicians: Online Targeting and ROI and Its Role in Marketing Mix Decisions, Jashvinder Chadha, CEO, MarketRx.com, firstname.lastname@example.org Abstract Physicians receive promotion from pharmaceutical companies from many channels such as Sales Representative detailing, teleconferences, prescription coupons and e-detailing. Online sales force automation and other tracking tools allow these contacts to be recorded in real-time and therefore tactical and marketing mix optimization can be calculated on-line and in real-time. 3. End-to-End Cost Optimization Models for Trans-border e-Commerce, Vipul Bansal and Vivek Jain, IBM Reasearch, New Delhi, India, email@example.com Abstract Various cost elements such as transportation costs and taxes can be significant in the context of a transaction spanning large geographical and international boundaries. A typical online marketplace determines matches without taking such costs into consideration which may result in sub-optimality for buyers or sellers or both. We propose a framework where such costs can be factored into the allocation and pricing decisions and provide formulation for some of the resulting optimization problems.
Session 17: Supply Chain Modeling and Analysis
Chair: Roger R. Gung, IBM T.J. Watson Research Center, firstname.lastname@example.org
1. A Data Envelopment Analysis (DEA) Model for Supply Chain Management, Roger R. Gung, IBM T.J. Watson Research Center; email@example.com; Tong Wu, Department of Industrial Engineering, Arizona State University, firstname.lastname@example.org; Tzu-Liang Tseng, Department of Architectural and Manufacturing Sciences, Western Kentucky University, email@example.com Abstract Data Envelopment Analysis (DEA) has been applied to numerous problems due to its strength in evaluating multi-criterion systems. We develop an Internet based test bed system based on DEA technique. A supplier evaluation case study is given to illustrate the application of this system. 2. Material and Capacity Feasible Solver in PeopleSoft's Supply Chain Planning Products, Bor-Ruey Fu, PeopleSoft, Inc., firstname.lastname@example.org, and Michael Peterson, PeopleSoft, Inc., email@example.com
Abstract We will discuss the new solver developed for the next release of PeopleSoft's Supply Chain Planning products. The solver generates a feasible supply plan that satisfies both material and capacity constraints. Additionally, we will give an overview of the PeopleSoft Optimization Framework technology that makes this possible and share our experiences. 3. Supply Chain and Service Chain Management at Catalog Sales Companies, Turgut Aykin; IBM Global Services, firstname.lastname@example.org Abstract Many companies employ customer service/contact centers to accept orders through a variety of channels including call centers, email, etc. The level of service they provide through their contact centers affect their orders, and supply requirements. This paper presents new approaches for managing supply chain and service chain operations. 4. Data Value Development to Enhance Yield and Maintain Competitive Advantage for Semiconductor Manufacturing, Cheng-Yung Peng, email@example.com, and Chen-Fu Chien, firstname.lastname@example.org, Department of Industrial Engineering and Engineering Management, National Tsing Hua University, Taiwan, ROC Abstract In semiconductor manufacturing, reducing cycle time, producing high quality products, on-time delivery, continual reduction of costs and improving efficiency are critical factors to maintain competitive advantage. An Engineering Data Analysis (EDA) system is a very important off-line analysis-oriented system that can be used to support yield analysis and quality improvement.
Session 18: Supply and Demand Management
Chair: Feng Cheng, IBM T.J. Watson Research Center, email@example.com
1. Discount Schedules and Advance Demand Information in a Decentralized Supply Chain, Ozalp Ozer and Wei Wei, Terman 313, Management Science and Engineering, Stanford University, Stanford, CA 94305 Abstract We study a decentralized supply chain in which the manufacturer uses a discount strategy to induce advance orders from the retailers. We establish an optimal policy and characterize the system performance with respect to discount price and forecasts. We conclude by establishing contracts that achieve channel coordination. 2. Strong Approximation for Multi-Item Product-Inventory System with Batch Arrivals and Inventory Capacity, Yingdong Lu, IBM T.J. Watson Research Center Abstract A set of new strong approximation results are proved for complicated productioninventory systems. Especially, we consider the impact of batch arrival upon the limiting diffusion processes. Computational procedures are proposed for both performance analysis and optimal control policy. 3. A Semiconductor Manufacturing Model with Multiple Grade Products and Downgrading, Bala Ramachandran, Guillermo Gallego and Kaan Katircioglu, IBM T.J. Watson Research Center Abstract We present a multi-echelon inventory model of a semiconductor manufacturing process that enables the analysis of drivers of supply chain performance. The model includes consideration of the multiple grades of products produced by the manufacturing process and effects of downgrading inventory. 4. Optimizing Inventory Performance in a Server Computer Manufacturing Environment, Carlos Rodriguez, IBM Server Group; Feng Cheng and Grace Lin, IBM T.J. Watson Research Center Abstract IBM Server Group has implemented a fabrication and fulfillment center manufacturing strategy to deal with the complex configuration requirements, leading edge
server technology issues, margin concerns and increasing pressures for responsive order fulfillment lead times. We present how we used simulation and optimization techniques for establishing optimal inventory levels for given serviceability targets and assessing the impact of various supply chain parameters on inventory levels.