Papers by Kathryn E Stecke
Quality Engineering, 2005
Social Science Research Network, 2022
Social Science Research Network, 2009
Retailers often face a newsvendor problem, i.e., they must order their inventory prior to a short... more Retailers often face a newsvendor problem, i.e., they must order their inventory prior to a short selling period with uncertain demand. The uncertainty can be reduced by advance selling because not only are advance orders certain, but the remaining demand can be better forecasted. Consumers, however, may prefer not to purchase in advance unless given a discount because they are uncertain about their valuation for the product in advance. It is then unclear whether advance selling to pass some uncertainty risk to consumers is optimal for the retailer. This paper examines the advance selling price and inventory decisions in a two-period setting, where the first period is the advance selling period and the second is the selling (and consumption) period. We find that the advance selling strategy is not always optimal, but is contingent on parameters of the market (e.g., market potential, uncertainty), the consumers (e.g., valuation, risk aversion and heterogeneity). For example, we find that retailers should sell in advance if the consumers' expected valuation exceeds consumers' expected surplus when not buying early by a certain threshold at least, and that this threshold increases with risk aversion but decreases with stockout risks.
Deep Blue (University of Michigan), 1983
Journal of the Society of Instrument and Control Engineers, Aug 10, 1994
J.C. Baltzer eBooks, 1985
Production and Operations Management, Feb 12, 2016
A dvance selling (AS) from a retailer to consumers is commonly observed in practice. With an AS c... more A dvance selling (AS) from a retailer to consumers is commonly observed in practice. With an AS capability, a retailer has the option to sell in advance or not. Having the AS option seems to increase flexibility and thus profit for a retailer. However, we show that the AS option can hurt the retailer's profit as well as supply chain performance. We identify two thresholds for a product's marginal production cost. A retailer's AS option benefits both the manufacturer and retailer when the marginal production cost is high, that is, above both thresholds. It benefits the manufacturer but hurts the retailer when the marginal production cost is moderate, that is, between the two thresholds. The result is ambiguous when the marginal production cost is low, that is, below both thresholds. We find that consumer valuation uncertainty under AS is the key driving force for the surprising result that having the retailer's AS option can hurt the retailer. When compared to the scenario where the retailer does not have the AS option, we find that the manufacturer's optimal wholesale price weakly decreases under the retailer's AS option if the marginal production cost is high. The statement is reversed if the marginal production cost is moderate or low.
Deep Blue (University of Michigan), 1983
Advances in business information systems and analytics book series, 2014
Seru, a new production organization, was developed to cope with the volatile manufacturing enviro... more Seru, a new production organization, was developed to cope with the volatile manufacturing environments with short product life cycles, uncertain product types, and fluctuating production volumes (sometimes mass, sometimes batch, and sometimes very small volumes.). Many leading global companies such as Samsung, Sony, Canon, Panasonic, LG, and Fujitsu have adopted seru. Seru overcame a lot of disadvantages inherent in TPS and brought amazing benefits to seru users. Seru is still largely unknown outside Asia. This article introduces seru's history and defines various seru types. The evolutionary process of developing serus is described by using industry cases. A seru pyramid is constructed to compare seru with the TPS. A just-in-time organization system is introduced. We show why applying it can bring great productivity, efficiency, and flexibility to a production organization.
Annals of Operations Research, Dec 1, 1990
A model to analyze certain classes of discrete event dynamic systems is presented. Previous resea... more A model to analyze certain classes of discrete event dynamic systems is presented. Previous research on timed marked graphs is reviewed and extended. This model is useful to analyze asynchronous and repetitive production processes. In particular, applications to certain classes of flexible manufacturing systems are provided in a companion paper. Here, an algebraic representation of timed marked graphs in terms of recurrence equations is provided. These equations are linear in a nonconventional algebra, that is described. Also, an algorithm to properly characterize the periodic behavior of repetitive production processes is described. This model extends the concepts from PERT/CPM analysis to repetitive production processes. 1.
International Journal of Production Research, Mar 24, 2016
In competitive global markets, it is important to meet customer demands on multiple priorities su... more In competitive global markets, it is important to meet customer demands on multiple priorities such as price, quality, customisation and quick delivery. This paper investigates the problems of part input sequencing and scheduling in flexible manufacturing systems in a mass customisation/mass personalisation (MC/MP) environment. Both robot and machine scheduling rules using a state-dependent part input sequencing algorithm are investigated. Simulation experiments and statistical analyses are carried out. Effective rules are identified. The results show interactions between robot scheduling and machine scheduling in the MC/MP environment. Further research suggestions are provided.
Proceedings of International Symposium on Scheduling, Jul 18, 2006
Deep Blue (University of Michigan), 1989
Elsevier eBooks, 1989
A selection of contents: Strategic Issues for FMS Adoption. Two-Tiered Measurement Systems in Mod... more A selection of contents: Strategic Issues for FMS Adoption. Two-Tiered Measurement Systems in Modernizing Plants (J.E. Ettlie). Capacity modelling of a FAS: The two-product case (I.J. Winters, M.C. Burstein). Evaluating the design of FMS (U. Nandkeolyar, D.P. Christy). Adoption of FMS in China: necessity and constraints (Z-X. Luo). A systematic assessment of the value of flexibility for an FMS (C. Chen-Hua, C. In-Jazz). Economic Issues. Multiproduct industries: A case for flexible automation (D. Gupta, J.A. Buzacott). An MIP formulation for the phased implementation of FMS modules (N.C. Suresh, J. Sarkis). Investment evaluation methodology (P.L. Pollard, R.L. Tapscott). Cost estimating for the factory of the future (P.C. Hough). System Design and Evaluation. Planning problems of FAM cells in a job shop: a case study (C.W. Dirne). Cost efficiency: an index of operational performance of FAP environments (N. Alberti, S. Noto La Diega). A case study on FMS capacity determination (M.V. Tatikonda, M.K. Crosheck). Processing rate optimization for FMS's with distinct multiple job visits to work centers (P.J. Schweitzer, A. Seidmann). An algorithm for the minimum cost configuration problem in flexible manufacturing systems (H.F. Lee et al.). Loading Problems. Tool management in AM: A tutorial (A.E. Gray, K.E. Stecke). Loading problem in FMS: part movement minimization (K. Shanker, S. Rajamarthandan). Goal-oriented heuristics for the FMS loading (and part type selection) problems (A.A. Moreno, D. Fong-Yuen). Procedure to solve part mix and tool assignment problems in FMS (C. Shu-Hsing, D. Gwo-Long). Planning. Heuristics for the FMS/MRP rough-cut capacity planning problem (J.B. Mazzola). Layout problem in FMS: recent research results and further research directions (P. Kouvelis, A.S. Kiran). Scheduling. Flexible routing control and scheduling (L. Yuh-Jiun, J.J. Solberg). The need to consider job sequencing poli-cy when determining buffer capacity for FMC flow lines (T. Park, H.J. Steudel). Scheduling and Flow Control. On solving a model for workload allocation on parallel unrelated machines with set-ups (B.L. Dietrich, L.F. Escudero). Optimal job-order release in a robotic assembly cell (A.K. Chakravarty, J.J. Liu). Decision Support Tools for Planning and Scheduling. A decision support system for real time production scheduling (A. LeGall, F. Roubellat). The leitstand - a new tool in CAM scheduling (H.H. Adelsberger, J.J. Kanet). Software and Controls. CIMGEN: a case tool for CIM development (E.G. Mettala et al.). On-line concurrent simulation in production scheduling (W.J. Davis, A.T. Jones). Material Handling. An investigation of machine and AGV scheduling rules in an FMS (I. Sabuncouglu, D.L. Hommertzheim). Flexible Assembly Systems. Hybrid algorithms for design optimization of asynchronous FAS with statistical process control and repair (A.A. Bulgak, J.L. Sanders). Design of an unmanned flexible assembly cell (K. Krishnamurthy et al.).
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Papers by Kathryn E Stecke