Tatiana Bouzdine-Chameeva

A pricing model for clearing end-of-season retail inventory

The problem of setting prices for clearing retail inventories of fashion goods is a difficult task that is further exacerbated by the fact that markdowns enacted near the end of the selling season have a smaller impact on demand. In this article, we present discrete-time models for setting clearance prices in such an environment. When demand is deterministic, we compute optimal prices and show that decreasing reservation prices lead to declining optimal prices. When demand is stochastic and arbitrarily correlated across planning periods, we obtain bounds on the optimal expected revenue and on optimal prices. We also develop a heuristic procedure for finding near-optimal prices and test its accuracy through numerical experiments. These experiments reveal new insights for practitioners. For example, the penalty for choosing clearance price once and keeping it unchanged for the remainder of the selling season is found to be small when either the mean reservation prices do not change appreciably over time or when they drop sharply after the first period.

Weight Restrictions and Free Production in Data Envelopment Analysis

It is known that the incorporation of weight restrictions in models of data envelopment analysis may result in their infeasibility. In our paper we investigate this effect in detail. We show that the infeasibility is only one of several possible outcomes that point to a particular problem with weight restrictions. For example, the use of weight restrictions may also lead to zero or negative efficiency scores of some units. Removing problematic units from the data set does not necessarily remove the underlying problem caused by the weight restrictions and only makes it undetected. We prove that all such problems arise when weight restrictions induce free or unlimited production of outputs in the underlying technology. This is unacceptable from the production theory point of view and indicates that the weight restrictions need reassessing. We develop analytical criteria and computational methods that allow us to identify the above problematic situations.

Consistent weight restrictions in data envelopment analysis

It has recently been shown that the incorporation of weight restrictions in models of data envelopment analysis (DEA) may induce free or unlimited production of output vectors in the underlying production technology, which is expressly disallowed by standard production assumptions. This effect may either result in an infeasible multiplier model with weight restrictions or remain undetected by normal efficiency computations. The latter is potentially troubling because even if the efficiency scores appear unproblematic, they may still be assessed in an erroneous model of production technology. Two approaches to testing the existence of free and unlimited production have recently been developed: computational and analytical. While the latter is more straightforward than the former, its application is limited only to unlinked weight restrictions. In this paper we develop several new analytical conditions for a larger class of unlinked and linked weight restrictions.

WORD-OF-MOUTH VERSUS EXPERTS AND REPUTATION IN THE INDIVIDUAL DYNAMICS OF WINE PURCHASING

The dynamics of wine purchasing behavior is studied focusing on the respective impacts of the word-to-mouth versus wine expert judgements and reputations. To investigate the problem we apply the Galam model of opinion dynamics to agents who have to select a preference about which type of wine to buy given expert judgements, individual preferences and wine reputations. It could be, for instance, a preference between Bordeaux and Burgundy. The main novelty of the work is not about the building of a new model but indeed the construction of a scheme to confront the Galam model to a specific problem of the real world. Accordingly we design a commercial strategy to hold on to a share of the wine market. It provides a novel understanding on how, given some established reputation, the competitive interplay between social interactions and expert judgments affects the market shares distribution. The financial implications of the practical implementation of these results are discussed. In particular it is found that sample distribution of bottles could be drastically reduced from the usual levels practiced by producers. We hope our results will convince some wine producers to test our predictions.

Combining the assumptions of variable and constant returns to scale in the efficiency evaluation of secondary schools

Our paper reports on the use of data envelopment analysis (DEA) for the assessment of performance of secondary schools in Malaysia during the implementation of the policy of teaching and learning mathematics and science subjects in the English language (PPSMI). The novelty of our application is that it makes use of the hybrid returns-to-scale (HRS) DEA model. This combines the assumption of constant returns to scale with respect to quantity inputs and outputs (teaching provision and students) and variable returns to scale (VRS) with respect to quality factors (attainment levels on entry and exit) and socio-economic status of student families. We argue that the HRS model is a better-informed model than the conventional VRS model in the described application. Because the HRS technology is larger than the VRS technology, the new model provides a tangibly better discrimination on efficiency than could be obtained by the VRS model. To assess the productivity change of secondary schools over the years surrounding the introduction of the PPSMI policy, we adapt the Malmquist productivity index and its decomposition to the case of HRS model.

Innovative Teaching Using Simulation and Virtual Environments

Introduction Modern service systems are complex, multi-actor systems of a distributed nature. For teaching and studying how interactions, decisions, and collaboration of different parties are managed when designing and deploying complex systems, simulations and game-based learning approaches are gaining popularity (Corsi et al., 2006; Saunders, Rutkowski, van Genuchten, Vogel, & Molina Orrega, 2011). Several research studies have reported on the shortcomings of traditional lecture-oriented and case-study-based pedagogical or training approaches (Bransford, Brown, & Cocking, 2000; Coldwell, Craig, & Goold, 2011; Hake, 1998; Maerki, 2008). The absence of technical components from education and training is being considered a major contributing factor to the lack of preparedness or skills that are deemed extremely important for a vast majority of professionals who need to make complex decisions in highly-paced, dynamic work environments. The National Science Foundation (NSF) and other government agencies have recently reported on the abysmally low ranking of U.S. undergraduates in terms of technical skills (Mayo, 2009; National Science Board, 2012). Such deficiencies may be partially overcome by integrating a combination of simulation modeling and game-based learning approaches, utilizing the availability of ubiquitous computing tools and technologies, into modern-day teaching and training curricula. As Mayo (2009) and Zyda (2007) suggest, such integration tends to lead to an effective learning paradigm, enriched brain chemistry, and significant improvement in the learning outcomes and cognition. The educational use of immersive games and simulation models of situations and problems similar to those found in the real world leads to trainer-less and unsupervised learning (Zyda, 2007). Further, it prepares an individual for making decisions in extreme and complex social and networked environments or situations such as defense applications and disaster management. In other words, modeling and simulation can serve as useful tools for teaching decision making skills both in single- and multi-actor environments. Also, several evolving disciplines such as service sciences are presently in their infancy stages but emerging at a tremendous pace. Such interdisciplinary areas that have their roots in disciplines such as operations management, computer science, and information systems can benefit tremendously from simulations and game-based approaches. At present, simulation modeling and game-based approaches are widely adopted only for studying and teaching concepts and applications that are otherwise difficult to explain. However, their adoption into mainstream college education and training still lags. This paper reports on the findings related to the above stated issues that have been documented by a group of collaborating co-authors teaching at different universities. The group was focused on innovative approaches that have been inspired by simulations (Seppanen & Kumar, 2002), game-based approaches (Royle, 2008; Yang, Smith, & Graham, 2008), and virtual environments such as Second Life, Innov8, Active Worlds, and Proterra (Foster, 2008; Marcus & Ray, 2006). These tools and approaches can be especially successful in and convenient for teaching Operations Management, Management Information Systems, and service sciences, as well as systems engineering in general. Essentially, this paper explores and demonstrates the application of interactive tools, namely, simulation modeling, game-based approaches, and virtual environments, in teaching. Another goal is to highlight the need for and value of these tools in complex, networked, multi-actor decision-making processes. Being a collaborative endeavor, this paper intends to launch a discussion on the use of virtual environments or tools to support the learning process. In doing so, each co-author contributed his/her experience with a particular environment and/or tool. …

Customer experience design: a case study in the cultural sector

The purpose of this paper is to explore the experience design phenomenon in the cultural sector. Specifically, it purports to articulate a set of design characteristics that support the alignment between an organisation’s design intention (i.e. intended experience) and the actual experience of customers (i.e. realised experience).,A single case study approach is adopted to explore the phenomenon from both the provider and customer perspectives simultaneously. A range of qualitative data, including 42 interviews with managers and customers as well as voluminous documentary evidence, are collected. Provider and customer data are analysed independently using a rigorous inductive analytical process to generate experience design themes and to assess possible gaps between intended and realised experience.,The findings reveal the design characteristics of touchpoints and the overall customer journey, which constitute the core experience, as well as the design characteristics of the physical and social environment, which support the realisation of the core experience, in a cultural context.,Limitations include difficulties in generalising the findings from a single case and in claiming that the set of design characteristics identified is exhaustive.,The paper makes several recommendations that are useful and relevant for customer experience practitioners in the cultural sector.,The paper’s contribution is to provide novel empirical insights into the four experience design areas of touchpoints, journey, physical elements and social elements in an experience-centric cultural context. On that basis, a conceptual framework for experience design in the cultural context is proposed.

Solving DEA models in a single optimization stage: Can the non-Archimedean infinitesimal be replaced by a small finite epsilon?

Single-stage DEA models aim to assess the input or output radial efficiency of a decision making unit and potential mix inefficiency in a single optimization stage. This is achieved by incorporating the sum of input and output slacks, multiplied by a small (theoretically non-Archimedean infinitesimal) value epsilon in the envelopment model or, equivalently, by using this value as the lower bound on the input and output weights in the dual multiplier model. When this approach is used, it is common practice to select a very small value for epsilon. This is based on the expectation that, for a sufficiently small epsilon, the radial efficiency and optimal slacks obtained by solving the single-stage model should be approximately equal to their true values obtained by the two separate optimization stages. However, as well-known, selecting a small epsilon may lead to significant computational inaccuracies. In this paper we prove that there exists a threshold value, referred to as the effective bound, such that, if epsilon is smaller than this bound, the solution to the single-stage program is not approximate but precise (exactly the same as in the two-stage approach), provided there are no computational errors.

On single-stage DEA models with weight restrictions

The literature on data envelopment analysis (DEA) often employs multiplier models that incorporate very small (theoretically infinitesimal) lower bounds on the input and output weights. Computational problems arising from the solution of such programs are well known. In this paper we identify an additional theoretical problem that may arise if such bounds are used in a multiplier model with weight restrictions. Namely, we show that the use of small lower bounds may lead to the identification of an efficient target with negative inputs. We suggest a corrected model that overcomes this problem.

Seriously pink: a cross-cultural examination of the perceived image of rosé wine

Purpose – This paper aims to examine consumer preferences and perceptions of rose wine with an ultimate purpose of constructing a perceived image of rose in the cross-cultural context. Design/methodology/approach – The study was conducted in four markets, comprising the USA, New Zealand, France and the UK. The data were collected via a structured questionnaire through a combination of survey administration modes (pen-and-paper and online). Descriptive statistics, chi-square, factor analysis and ANOVA were used for analysis. Findings – One of the key findings revolves around the construction of the perceived image of rose and how this image varies in different markets. Effectively, this study presents an overview of the perceived reputation of rose in four different market structures, shaped by different cultural and image management issues. Practical implications – The most crucial implication of this research is the cultural variation in consumer attitudes toward rose wine and its impact on marketing str...