Anantaram Balakrishnan

Bio: Anantaram Balakrishnan is an academic researcher from University of Texas at Austin. The author has contributed to research in topics: Network planning and design & Heuristics. The author has an hindex of 22, co-authored 56 publications receiving 2191 citations. Previous affiliations of Anantaram Balakrishnan include Purdue University & College of Business Administration.

A Dual-Ascent Procedure for Large-Scale Uncapacitated Network Design

Abstract: The fixed-charge network design problem arises in a variety of problem contexts including transportation, communication, and production scheduling. We develop a family of dual-ascent algorithms for this problem. This approach generalizes known ascent procedures for solving shortest path, plant location, Steiner network and directed spanning tree problems. Our computational results for several classes of test problems with up to 500 integer and 1.98 million continuous variables and constraints show that the dual-ascent procedure and an associated drop-add heuristic generate solutions that, in almost all cases, are guaranteed to be within 1 to 4% of optimality. Moreover, the procedure requires no more than 150 seconds on an IBM 3083 computer. The test problems correspond to dense and sparse networks, including some models that arise in freight transport.

Browse-and-Switch: Retail-Online Competition under Value Uncertainty

Abstract: Although online shopping is becoming popular, consumers who are unsure about whether to buy a product may find it advantageous to visit a brick-and-mortar retail store to first examine the product before purchasing it. But, after browsing at the store, consumers have the option of switching to an e-tailer to purchase the item at a cheaper price rather than buying at the store. Recent business press refers to this browse-and-switch behavior as “showrooming,” and attributes to it the declining profits of brick-and-mortar retailers. To study the effect of the browse-and-switch option on retail and online pricing strategies and profits, we analyze a stylized economic model that incorporates uncertainty in consumers' valuation of the product, captures the heterogeneity among consumers in their inclination to purchase online, and permits product returns. We consider various equilibrium scenarios for different combinations of consumer shopping behaviors, characterize the parameter ranges for each scenario, and demonstrate that browse-and-switch behavior can indeed occur under equilibrium. Our analysis further shows that the option for consumers to browse-and-switch intensifies competition, reducing the profits for both firms.

An Integrated Inventory Allocation and Vehicle Routing Problem

Abstract: We address the problem of distributing a limited amount of inventory among customers using a fleet of vehicles so as to maximize profit. Both the inventory allocation and the vehicle routing problems are important logistical decisions. In many practical situations, these two decisions are closely interrelated, and therefore, require a systematic approach to take into account both activities jointly. We formulate the integrated problem as a mixed integer program and develop a Lagrangian-based procedure to generate both good upper bounds and heuristic solutions. Computational results show that the procedure is able to generate solutions with small gaps between the upper and lower bounds for a wide range of cost structures.

Stack Them High, Let 'em Fly: Lot-Sizing Policies When Inventories Stimulate Demand

Abstract: In some retail contexts, stocking large quantities of inventory may not only improve service levels, but can also stimulate demand. For products having demand rates that increase with inventory levels, we analyze the effect of stocking decisions on firm profitability to develop managerial insights regarding the structure of the optimal inventory policy, and to understand how this policy differs from traditional approaches. When inventories stimulate demand, iteratively applying the standard economic order quantity (EOQ) model--by setting the demand rate parameter equal to the observed average demand rate in prior cycles--yields an equilibrium order quantity that is robust to demand parameter misestimation, but is suboptimal. The profit-maximizing policy orders larger quantities, and can replenish inventory even before on-hand stock fully depletes. Using an extension of a standard inventory-dependent demand model from the literature, we first provide a convenient characterization of products that require early replenishment. We demonstrate that the optimal cycle time is largely governed by the conventional trade-off between ordering and holding costs, whereas the reorder point relates to a promotions-oriented cost-benefit perspective. We show that the optimal policy yields significantly higher profits than cost-based inventory policies, underscoring the importance of profit-driven inventory management.

Models for Planning Capacity Expansion in Local Access Telecommunication Networks

Abstract: The rapid progress of communications technology has created new opportunities for modeling and optimizing the design of local telecommunication systems. The complexity, diversity, and continuous evolution of these networks pose several modeling challenges. In this paper, we present an overview of the local telephone network environment, and discuss possible modeling approaches. In particular, we (i) discuss the engineering characteristics of the network, and introduce terminology that is commonly used in the communications industry and literature; (ii) describe a general local access network planning model and framework, and motivate different possible modeling assumptions; (iii) summarize various existing planning models in the context of this framework; and (iv) describe some new modeling approaches. The discussion in this paper is directed both to researchers interested in modeling local telecommunications systems and to planners interested in using such models. Our goal is to present relevant aspects of the engineering environment for local access telecommunication networks, and to discuss the relationship between engineering issues and the formulation of economic decision models. We indicate how changes in the underlying switching and transmission technology affect the modeling of the local telephone network. We also review various planning issues and discuss possible optimization approaches for treating them.

Out of the Crisis

Abstract: According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1982, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

Value creation in E-business

Abstract: We explore the theoretical foundations of value creation in e-business by examining how 59 American and European e-businesses that have recently become publicly traded corporations create value. We observe that in e-business new value can be created by the ways in which transactions are enabled. Grounded in the rich data obtained from case study analyses and in the received theory in entrepreneurship and strategic management, we develop a model of the sources of value creation. The model suggests that the value creation potential of e-businesses hinges on four interdependent dimensions, namely: efficiency, complementarities, lock-in, and novelty. Our findings suggest that no single entrepreneurship or strategic management theory can fully explain the value creation potential of e-business. Rather, an integration of the received theoretical perspectives on value creation is needed. To enable such an integration, we offer the business model construct as a unit of analysis for future research on value creation in e-business. A business model depicts the design of transaction content, structure, and governance so as to create value through the exploitation of business opportunities. We propose that a firm's business model is an important locus of innovation and a crucial source of value creation for the firm and its suppliers, partners, and customers. Copyright © 2001 John Wiley & Sons, Ltd.

Managing Disruption Risks in Supply Chains

Abstract: There are two broad categories of risk affecting supply chain design and management: (1) risks arising from the problems of coordinating supply and demand, and (2) risks arising from disruptions to normal activities. This paper is concerned with the second category of risks, which may arise from natural disasters, from strikes and economic disruptions, and from acts of purposeful agents, including terrorists. The paper provides a conceptual framework that reflects the joint activities of risk assessment and risk mitigation that are fundamental to disruption risk management in supply chains. We then consider empirical results from a rich data set covering the period 1995–2000 on accidents in the U. S. Chemical Industry. Based on these results and other literature, we discuss the implications for the design of management systems intended to cope with supply chain disruption risks.

Routing, Flow, And Capacity Design In Communication And Computer Networks

Abstract: In network design, the gap between theory and practice is woefully broad. This book narrows it, comprehensively and critically examining current network design models and methods. You will learn where mathematical modeling and algorithmic optimization have been under-utilized. At the opposite extreme, you will learn where they tend to fail to contribute to the twin goals of network efficiency and cost-savings. Most of all, you will learn precisely how to tailor theoretical models to make them as useful as possible in practice. Throughout, the authors focus on the traffic demands encountered in the real world of network design. Their generic approach, however, allows problem formulations and solutions to be applied across the board to virtually any type of backbone communication or computer network. For beginners, this book is an excellent introduction. For seasoned professionals, it provides immediate solutions and a strong foundation for further advances in the use of mathematical modeling for network design. (Less)