Ralph D. Badinelli

An optimal, dynamic policy for hotel yield management

Abstract Most research into the yield management problem has generated variations on the marginal seat revenue models that are based on simplifying assumptions about the demand process and heuristic decision rules. In this paper, a dynamic programming formulation of the problem is given allowing for general demand patterns and a policy that is based on time and the number of vacancies. Furthermore, this policy incorporates both revealed-price and hidden-price market behavior. It is shown that this formulation has a simple, closed-form solution that can be efficiently computed. As a result, a more general formulation of the problem with an optimal solution is available to hotels and airlines. The particular application that motivated this model development is that of yield management for small hotels.

Viable Service Systems and Decision Making in Service Management

This paper addresses decision making in the management of complex service systems, highlighting the contribution of the viable systems approach as an interpretative and governance methodology based on systems thinking. In the last few decades, business management has undergone significant changes due to rapid developments in markets. New competitive strategies and technologies have stimulated global discussion about business models and tools (Ghoshal, 2005). The role of relationships has become increasingly relevant in businesses, and researchers as well as industries are shifting their focus to a service-oriented approach, moving from a paradigm of product to one of service (IfM-IBM Cambridge SSME Report, 2008).

S-D Logic Research Directions and Opportunities: The Perspective of Systems, Complexity and Engineering

The need for a systems approach to modelling and understanding service is now well established (Barile, 2009; Barile and Polese, 2009; Golinelli, 2010; Ng et.al.,2011a). Following the construction of Maglio et al. (2009), we view a service system as a network of agents and interactions that integrate resources for value co-creation.To date, several disciplines have broached the systems view of service and the engineering of service systems. However, the agents of the system are usually people whose activities may not easily be controlled by predictable processes and yet are critical aspects of the value-creating system (Ng et al., 2011b). There is need for a new combinative paradigm, such as third-generation activity theory, in which two or more activity systems come into contact, to explore dialogue, exchanging perspectives of multiple actors, resulting in networks or groups of activity systems that are constantly interacting (Marken, 2006; Nardi, 1996; Oliveros et al., 2010).

Understanding the role of developer/builders in the concurrent commercialization of product innovation

Purpose – The aim of this paper is to present part of continuing research on the challenges of entrepreneurial business ventures to commercialize innovative construction products in the residential construction industry.Design/methodology/approach – The authors use workshop and survey data on the role of the developer/builder to further develop the domain‐specific commercialization model for residential construction products. The authors propose a cross‐functional system to better facilitate innovation.Findings – Successful concurrent commercialization requires risk sharing among all members of a products supply chain. The authors advocate concurrent management in commercialization, which requires information sharing and knowledge transfer among supply‐chain members early in a commercialization project and a special form of concurrent engineering for construction products, which is called concurrent commercialization (CC).Practical implications – The research indicates that addressing the developer/build...

A model for continuous-review pull policies in serial inventory systems

In this paper, we construct a model of the steady-state values of on-hand inventory and backorders for each facility of a serial inventory system in which each facility follows a Q, R policy based on installation stock. Such policies are represented by the popular kanban systems as well as more conventional applications of Q, R policies. The descriptive model presented here is intended for optimizing the parameters of such a policy and for obtaining theoretical results about the behavior of the system. We also illustrate the potential of the model for providing insights into system performance.

Backorders optimization in a one-warehouse N-identical retailer distribution system

This article examines the allocation of safety stock between sectors in a one-warehouse N-retailer distribution system which follows a (Q,R) inventory replenishment policy. In particular, the so-called „portfolio” motive for holding warehouse safety-stock inventory is investigated. Two optimization problems involving the tradeoff between average system inventory investment and customer service, i.e., customer backorders, are considered and shown to be equivalent to a simpler optimization problem involving the tradeoff between customer service and system safety stock. Equivalence implies that the set of optimal policies for the simpler optimization problem provides all of the optimal policies for the more complex ones. This equivalence result is applied to the Deuermeyer and Schwarz (DS) model of the distribution system under study. Bounds on the set of optimal policies are provided. A heuristic for minimizing expected backorders with respect to a constraint on average system on-hand inventory is introduced, and empirical tests described. The heuristic, which prescribes little warehouse on-hand inventory, appears to be near optimal for the DS model. A simulation study supports this „near-zero” inventory prescription for the warehouse.

A concurrent optimization methodology for concurrent engineering

The authors describe a methodology for making the decisions associated with the concurrent engineering of a product and its downstream held support. They adopt, for the overall metrics for evaluating these decisions, long-run system availability and life-cycle cost. The decisions that constitute the concurrent engineering effort can be categorized into three phases: designing the product; designing the manufacturing and logistics systems; and setting operations-control policies for parts production and field support. As an enhancement to well-established methods of coordinating decision makers in concurrent engineering and sharing data across different phases of design and deployment, they have developed a methodology that simultaneously makes the decisions that constitute these phases. This methodology is based on a dynamic programming model of these decisions which is robust and efficient when compared to manual methods of coordinating the concurrent engineering effort. They recommend its use as a decision support mechanism, not as a substitute for interaction among design-team members.

Concurrent optimization in designing for logistics support

Concurrent Engineering has always been an important field within military industry and is gaining recognition within commercial industry as well. Studies have suggested that long-range research efforts need to be directed to the area of integrated logistics. In order to satisfy the overall logistics objectives, product designs must incorporate consideration of the impact that design decisions have on operations, maintenance, transportation and supply. This paper presents a model that carries out a concurrent optimization of a product design and its associated manufacturing and logistics support systems. We offer this model as a framework for decision support of concurrent engineering activities.

Towards establishing a domain specific commercialization model for innovation in residential construction

Purpose – The purpose of this paper is to offer a commercialization framework that outlines phases and functional areas for technical and business practices in getting innovative products to market. The development of this framework was motivated by a history of failures of entrepreneurial business ventures in the commercialization of construction products.Design/methodology/approach – This paper presents Phase 1 of commercialization research efforts, which includes a definition of innovation and commercialization for the residential construction industry; a review of literature related to generic commercialization models; and construction of a new commercialization framework for innovative construction products. This paper also introduces Phase 2 of this research, which includes qualitative and quantitative knowledge capture from construction industry experts; and the development of a domain‐specific commercialization model for the residential industry based on these inputs to reflect the unique challeng...

A model for efficiency-based resource integration in services

Service processes, such as consulting, require coordinated efforts from the service recipient (client) and the service provider in order to deliver the desired output – a process known as resource integration. Client involvement directly affects the efficiency of service processes, thereby affecting capacity decisions. We present a mathematical model of the resource-integration decision for a service process through which the client and the service provider co-produce resource outputs. This workforce planning model is unique because we include the extent of client involvement as a policy variable and introduce to the resource-planning model efficiency and quality performance measures, which are functions of client involvement. The optimization of resource planning for services produces interesting policy prescriptions due to the presence of a client-modulated efficiency function in the capacity constraint and subjective client value placed on participation in the service process. The primary results of this research are optimal decision rules that provide insights into the optimal levels of client involvement and provider commitment in resource integration.