Data center supply chain configuration design: A two-stage decision approach

Data centers are special-purpose facilities that enable customers to perform cloud based real-time online transactions and rigorous computing operations. Service levels of data center facilities are characterized by response time between query and action, which to a large extent depends on data center location and data travel distance. Another aspect of service level is resource up-time availability, which is determined by data center configuration. Data center location and configuration decisions are, therefore, of great significance to ensure uninterrupted operations in customers of manufacturing and service industries relying on cloud-based computing resources. In this study, following a grid-based location approach, we present two mixed integer linear programming models for capacitated single-source data center location-allocation problems. The first model provides optimal locations, capacities and configurations of data centers, and allocation of demands to open facilities when there is no existing facilities in the region. Our second model considers the decision problem of meeting new demand when the existing demand is met by the already opened facilities. We term these newly arrived demand as replication demand, which results either from emergence of new users of existing customers at distant locations in the future, or as a means of increasing data resilience by creating data replication as a backup. To solve the decision problem for meeting primary and replication demand optimally, we propose a two-stage decision algorithm. The algorithm provides optimal locations, capacities and configurations for new data centers, capacity addition decisions to the existing facilities and subsequent allocation of demands. Both models and solution algorithm are implemented using AMPL programming language and solved with CPLEX solver. The models are found to be scalable and capable to provide high quality solutions in reasonable time.     

An experiment of social learning with endogenous timing

In this paper, we experimentally investigate a social learning model with endogenous timing. Specifically, we focus on a model, in which two subjects are supposed to make a binary decision. One alternative is a safe action with a fixed payoff, while the other alternative is a risky action. The subjects can make their decisions in three stages. The safe action is reversible, but the risky action is not. A subject who delays his decision can observe the decision of the other subject in the earlier stages, and as a result, acquire more information. We show that players do delay their decisions in order to obtain more information. Furthermore, they delay especially when their private information does not particularly support the risky action. We also find evidence which suggests that risk aversion plays an important role in timing decisions, often leading to ex post inefficient outcomes.     

Why locate manufacturing in a high-cost country? A case study of 35 production location decisions

In this paper, we examine in detail 35 final assembly location decisions to gain understanding of the manufacturing location decision from strategy and economic policy perspectives. We are particularly interested in the decision to locate final assembly specifically in a high-cost (high GDP per capita) environment. In contrast with the earlier literature, we focus not just on manufacturing activities themselves, but also the key linkages between production, market, supply chain, and product development. These linkages are examined using three key concepts from theories of organization design: formalization, specificity, and coupling. Using these concepts, an analysis of the micro-structure of each case reveals important commonalities that inform our understanding of location decisions. We conclude by discussing the policy implications of our findings.     

Virtuous circle: Human capital and human resource management in social enterprises

The majority of the extant research on human resource management (HRM) draws conclusions based on evidence from for-profit organizations. In response to calls for the exploration of HRM in different contexts, this study focuses on understanding HRM in the context of social enterprises. The unique context of social enterprises and their unique workforce raise questions about the direct applicability of frameworks developed from examining HRM in for-profit organizations. The narratives provided by 20 CEOs, HR directors, and managers of social enterprises in the United Kingdom highlight the importance of “ethics of care” as the core of the HRM-related decisions in the “third sector.” In addition, we identify five distinct workforce categories and propose a typology of differentiated HRM systems that enable social enterprises to achieve their dual mission. Finally, we propose a “virtuous circle” model, highlighting “ethics of care” as the main driver for organizational outcomes, using differentiated HRM systems that better serve their needs.     

Integrating uncertain user-generated demand data when locating facilities for disaster response commodity distribution

This paper presents a new facility location problem variant with application in disaster relief. The problem is unique in that both verified data and unverified user-generated data are available for consideration during decision making. The problem is motivated by the recent need of integrating unverified social data (e.g., Twitter posts) with data from more traditional sources, such as on-the-ground assessments and aerial flyovers, to make optimal decisions during disaster relief. Integrating social data can enable identifying larger numbers of needs in shorter amounts of time, but because the information is unverified, some of it may be inaccurate. This paper seeks to provide a “proof of concept” illustrating how the unverified social data may be exploited. To do so, a framework for incorporating uncertain user-generated data when locating Points of Distribution (PODs) for disaster relief is presented. Then, three decision strategies that differ in how the uncertain data is considered are defined. Finally, the framework and decision strategies are demonstrated via a small computational study to illustrate the benefits user-generated data may afford across a variety of disaster scenarios.     

工业企业选址评价研究

设施选址属于企业等投资主体的战略性决策，不同类型的投资主体对设施选址的要求不同，所适合的分析方法也各异。目前，对于以服务定位的设施选址（如连锁超市等）及以中间定位的设施选址（如物流中心等）的应用研究比较多，而对于制造型企业，特别是大型工业企业选址问题的研究较少。文章针对大型工业企业选址问题，综合层级分析法和模糊综合评价法建立了评价模型，具有较好的实用意义。     

Strategic real options under asymmetric information

This paper studies the effect of private information on the capital allocation decisions of firms who operate under imperfect competition. I analyze two interactive firms, one with private information and the other without, who must decide when to undertake an irreversible and uncertain investment decision. Traditional non-strategic models of irreversible investment under uncertainty involve a single decision maker and result in an optimal period of delay before the investment is undertaken. In a strategic setting, firms must balance their desire to delay against competitive advantages from early investment. I find that an equilibrium may not exist within the standard continuous framework when the private information is over revenues. Moreover, when an equilibrium does exist the competitive pressures from the uninformed firm are weak. This is in contrast to existing models with asymmetric information over costs, where an equilibrium always exists and the competitive pressures remain strong (Hsu and Lambrecht, 2007). This work shows that the investment timing decision, and thus the value of the private information, is highly sensitive to the nature of incomplete information.     

连锁企业配送中心选址的两阶段模型研究

利用定性因素与定量因素相结合的方法研究了连锁企业物流配送中心选扯问题。首先在分析配送中心选址的定性因素的基础上,利用灰局势决策方法筛出候选点;然后在定量模型中,充分考虑连锁经营的特点,以配送服务的可靠性最大化为目标,以配送总成本为约束条件,建立了连锁企业配送中心选址的优化模型,从而得到连锁企业配送中心选址的定量方法。     

Non-parametric models for spatial efficiency

This research develops a nonconvex model for measuring the spatial efficiency of siting decisions and demonstrates the virtues of such measurements in comparison to those of convex approaches. Working with a case study from the public sector, we develop relative spatial efficiency (RSE) models which access the sufficiency of a location decision in relation to a best practice decision on the efficient (or most accessible) frontier. The paper also compares the results of the nonconvex methodology with that of the convex model and suggests the strengths and weaknesses of each in terms of the type of support they offer to decisionmakers concerned with actual siting decisions.The authors express their gratitude to Professors, Knox Lovell, Gerard Rushton, and two anonymous referrees for their helpful comments on an earlier draft.     

考虑企业社会责任的工业园区废弃物定价策略

考虑制造商承担企业社会责任,构建了工业园区内两个制造商和政府之间的三阶段博弈模型,研究了工业园区废弃物的均衡定价决策。通过模型仿真分析了企业社会责任水平和共生系数对制造商定价、利润和社会福利的影响,并比较了不同废弃物处理情形下制造商的利润。     

Applications of decision support and expert systems in flexible manufacturing systems

Flexible manufacturing systems (FMS) increase the efficiency of operations by improving cost, quality, and lead time while decision support and expert systems (DSS&ES) improve the effectiveness of manufacturing by assisting the decision maker in coordinating all the elements and increasing the overall utilization of the factory, particularly in managing a complex system of flexible manufacturing. This article surveys a number of available decision support and expert systems applications in flexible manufacturing after reviewing the features of each one and then proposes additional potential applications.It appears that what is holding back the widespread use of FMS is not the technology, but is some management issues. Application of DSS&ES enables a manager to obtain a full flexibility of equipment in terms of machine flexibility, product flexibility, process flexibility, operation flexibility, routing flexibility, volume flexibility, expansion flexibility, and production flexibility. Many decisions are made in planning and operating FMS that can be categorized into three classes of strategic, tactical, and operational decisions. Each class can be further categorized into structured, semistructured, and unstructured decisions. The article provides examples of FMS decision in each of nine groups and show that use of DSS&ES can be productive.Illustrative cases are categorized into (1) DSS in FMS, (2) DSS in related manufacturing operations, (3) ES in FMS, and (4) ES in related manufacturing operations. The cases described include ICAM, REACT, KEE, PADMS, IMS, FADES, GARI, TOM, ISIS, and GENPLAN.The article finally provides hints for successful DSS and ES implementation. Subjects include getting management involved, choosing a key application, manage vendor involvement, paying attention to maintenance, assigning qualified personnel, paying attention to training, and always reviewing the results.FMS is basically a computer-based system and so are DSS and ES. There is an increased trend of integrating independent computer-based systems to take advantage of the possible synergy of such integration. At present, there is only a little evidence of DSS and/or ES applications in FMS. However, there is increasing evidence of applications in related manufacturing areas. Furthermore, the planning and operations of FMS require considerable expertise; DSS and ES techniques are aimed at supporting or even replacing such expertise. Therefore, it seems that there is a considerable potential for further application of DSS and ES in FMS.     

The effect of environmental information on investment allocation decisions – an experimental study

This paper focuses on the use of environmental information in investment decision making. The research approach employed is based on an experiment where three groups of final year finance students were asked to allocate investment funds between two companies based on financial accounts and information material from these companies in which environmental information was included in varying degrees. The overall conclusion is that the qualitative environmental information affects short term allocation decisions, hence indicating a risk reduction potential of environmental information comparable to the classic interpretation of financial information. The quantitative environmental information included in the experiment seems to mitigate rather than extend the directional effect of more environmental information. The evidence also seems to indicate that decision makers are not always aware which information categories affect their decision making. Hence, this has implications for how the potential value of environmental information is to be assessed. Finally, experimental studies as a methodology seem to be better suited to indicate actual effects of different types of information on decision making than attitude surveys. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Why in the world did they reshore? Examining small to medium-sized manufacturer decisions

Small to medium-sized enterprises (SMEs) are moving their manufacturing operations from low-cost countries back to high-cost countries, reversing earlier offshoring decisions. These reshoring decisions cannot be completely explained by changing location-related costs. To better understand why SMEs are reshoring, we evaluate nine product-line decisions – six to reshore and three to remain offshore – and codify four empirical observations. We then integrate these observations with relevant literature to develop and analyze a system dynamics model of SMEs' offshoring and reshoring decisions. Synthesizing the above, we articulate propositions regarding SMEs’ reshoring decisions. We conclude by discussing these decisions through the lens of the heuristic decision-making literature, providing managerial and policy implications.     

Towards a Socio-Cognitive Approach to Knowledge Transfer

abstract    Dominant research streams in the knowledge transfer field, such as the positivist and social constructionist approaches, largely assume that knowledge transfer is accomplished through instructions and/or socially constructed practices. Underlying these views is the belief that texts and practices carry with them the codes necessary for their own decoding and therefore enable an unproblematic knowledge transfer. In contrast, we argue that the decoding of information into meaningful knowledge is always mediated by people's private and cultural models, which are created from the unique combination of their cognitive dispositions (i.e. acumen, memory, creativity, volitions, emotions) and socio-cultural interaction. The degree to which people apply these models reflectively and/or categorically (i.e. automatically) depends on the need for cognition as well as environmental demands and feedback. Therefore, knowledge transfer is always tentative, because it depends on the application of private and cultural models along the continuum that goes from reflective to categorical processing. We present first a critique of the positivist and social constructionist positions; then we introduce a socio-cognitive model that captures and explicates socio-cognitive processes involved in sense making during knowledge transfer. Finally, we explore future research streams and managerial implications.     

基于战略匹配和层次分析的企业IT治理关键问题决策

企业战略与IT战略之间的匹配是确保IT治理取得良好绩效的重要前提。企业的IT治理必须完成五个关键问题的决策。为有效地将战略对应的思想转化为量化模型,支持企业决策,本文引入网络层次分析法模拟企业战略与IT战略之间的匹配关系,分别借用Porter的战略管理理论和Henderson的战略匹配模型代表企业战略和IT战略,提出了基于战略匹配的企业IT治理五个关键问题决策模型,并通过实例分析与运算验证了该模型的有效性。     

加工制造类企业的供应物流系统优化研究

阐述了加工制造类企业的供应物流系统的组成以及系统的运作过程,将传统的企业供应物流向下延伸至车间并作为一个整体系统进行研究,以利于避免认知上或研究上的片面性。在此基础上,建立起加工制造类企业原材料供应的系列数学模型并通过算例演示了所述数学模型的应用。     

Endogenous household interaction

Most econometric models of intrahousehold behavior assume that household decision making is efficient, i.e., utility realizations lie on the Pareto frontier. In this paper, we investigate this claim by adding a number of participation constraints to the household allocation problem. Short-run constraints ensure that each spouse obtains a utility level at least equal to what they would realize under (inefficient) Nash equilibrium. Long-run constraints ensure that each spouse obtains a utility level at least equal to what they would realize by cheating on the efficient allocation and receiving Nash equilibrium payoffs in all successive periods. Given household characteristics and the (common) discount factor of the spouses, not all households may be able to attain payoffs on the Pareto frontier. We estimate these models using a Method of Simulated Moments estimator and data from one wave of the Panel Study of Income Dynamics. We find that both short- and long-run constraints are binding for sizable proportions of households in the sample. We conclude that it is important to carefully model the constraint sets household members face when modeling household allocation decisions, and to allow for the possibility that efficient outcomes may not be implementable for some households.     

工业企业选址评价研究

设施选址属于企业等投资主体的战略性决策,不同类型的投资主体对设施选址的要求不同,所适合的分析方法也各异。目前,对于以服务定位的设施选址(如连锁超市等)及以中间定位的设施选址(如物流中心等)的应用研究比较多,而对于制造型企业,特别是大型工业企业选址问题的研竞较少。文章针对大型工业企业选址问题,综合层级分析法和模糊综合评价法建立了评价模型,具有较好的实用意义。     

Measures for Sustainable Investment Decisions and Business Strategy – A Triple Bottom Line Approach

Traditionally, most investors have only taken economic variables (profitability and risk) into account when making investment decisions. In this paper we propose two measures, the Relative Sustainable Performance Measure (RSPM) and the Measure of Commitment‐failure (MC), that permit sustainable decision making, which takes environmental and social variables into consideration in addition to the economic variables, for both investors and companies themselves. This makes a triple bottom line (TBL) approach to investment decision making possible. We apply our measures to the worldwide chemical sector and validate them. Moreover, we propose a 2D graphical sustainability analysis, which is simple and easy for investors to understand when making investment decisions and can be used if they are concerned about environmental and social matters. It also enables companies to analyse their sustainability performance and adapt their business plans accordingly. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment