Showing papers presented at "International Conference on Service Operations and Logistics, and Informatics in 2010"

Queueing system with impatient customers: A review

Abstract: In this paper, queueing systems with impatient customers is surveyed in accordance with various dimensions. First, we introduce the impatient behaviors (balking and reneging) and their various rules proposed in literature. Second, analytic solutions, numerical solutions and simulation modeling of the queue with impatient customers are investigated. Third, we propose the optimization both from the perspective of customers and providers. Finally, some research trendencies in the field are included.

Financial supply chain management

Abstract: To effectively manage a supply chain, we should no longer focus on physical flow and informational flow only, but also the financial flow. The financial supply chain management (FSCM) extracts capital tied to the raw material, work-in-process, inventory in transit, and accounts receivable (accounts payable). In this paper we review a set of supply chain financing solutions tailored by the financial institutions, and introduce a few quantitative works from the operations research society. The survey reveals the benefits of actively managing the financial supply chain and highlights the quantitative decision-making process in FSCM. Moreover, we propose several interesting problems in FSCM which are remained to be explored.

Solution-based deployment of complex application services on a Cloud

Abstract: Managing and containing runaway IT costs for solution deployment is one of the top priorities for enterprises. Cloud Computing, with its on-demand provisioning capability on shared resources, has emerged as a new paradigm for reducing IT costs. In this paper, we describe a solution-based provisioning mechanism to automate the deployment of complex application services on a Cloud infrastructure. We introduce the concept of Composite Appliance and show how it can be used to deploy a complete solution and to simplify management tasks. We illustrate the advantages of our approach with a prototype solution consisting of two-tier application services that are deployed and configured automatically on virtual machine instances without manual intervention.

A new conceptual life cycle model for Result-Oriented Product-Service System development

Abstract: Result-Oriented Product Service System is a type of PSS which has the highest level of service content. Result-Oriented PSS providers sell functions to customers instead of selling products. In current researches, PSS is usually modelled based on the product lifecycle perspective. This paper proposes a new concept for developing Result-Oriented PSS from the service perspective, namely the ‘product-service lifecycle model’. It is adapted from the ‘customer-service lifecycle model’, which is developed for applications in E-commerce. This paper defines and discusses the stages and corresponding activities in the product-service lifecycle and proposes a guideline to design a system integrating service and product offering according to customer requirements and characteristics. At the end of paper, the authors also discuss future directions to further develop the new lifecycle concept and model.

A methodology for successful implementation of ERP in smaller companies

Abstract: ERP (Enterprise Resources Planning) has been proven to be an effective tool that improves business performances for competiveness in the market. However, the success rate of implementing such a tool to a company has been fairly low. While issues and key success factors of such implementation have been addressed by many researchers, it has been noted that Small & Medium Enterprises (SMEs) face more challenges. In this paper, authors have developed and applied a proven methodology for SMEs to implement ERP system. The case study shows that the method is comprehensive and effective.

Time-of-Use pricing policies for offering Cloud Computing as a service

Abstract: We study a reservation system with finite computing resources over an infinite horizon, where a set of incumbent users submit reservation requests for computing resources ahead in time. Computing resources may be purchased in exchange for tokens. We use the Multinomial Logit (MNL) framework to model customer substitution behavior. Given user requests, the objective is to maximize system performance, defined as the proportion of customers that obtain their preferred time slot, by adjusting resource prices in tokens per unit of time and per computing resource. We consider a class of pricing policies called Time-of-Use (ToU), and propose a simple and intuitive algorithm that is provably optimal for an approximation to our formulated problem. Our proposed solution has the appealing property of flattening demand over the horizon. We evaluate the performance of our approach numerically. For the set of problem instances that we consider, the optimal ToU policy outperforms single pricing strategies by 3–8 % for Customer Satisfaction, on average. We discuss the implementation of our proposed approach for Cloud Computing being developed by IBM at the King Abdullah University of Science and Technology (KAUST).

Customer satisfaction measurement model of e-government service

Abstract: Since the late 1990s, numerous governments have made huge investments in electronic government services. The rise of these services has led to a concurrent need to develop models of customer satisfaction of e-government services. This study aims to establish an e-government customer satisfaction measurement model from the behavioral perspectives of users. Based on the Technology Acceptance Model (TAM) and Self-service Technology (SST), the study proposes an intergraded model for measuring e-government customer satisfaction. An online survey is undertaken. The target population is undergraduate students who have experienced with browsing and searching for the information in e-government web portals. Using structural equation modeling, a highly statistically significant goodness-of-fit was found for the model. The results show that the important determinants of customer satisfaction of e-government are perceived usefulness, perceived ease of use, perceived reliability and perceived personalization. Finally, the academic and practical conclusions are discussed.

Heuristic algorithms to solve 0–1 mixed integer LP formulations for traffic signal control problems

Abstract: In this paper, three heuristic solution algorithms, (the Dive-and-Fix method, the Ratio-cluster method, and the Cumulative-departure method) are specially designed to solve the traffic signal control problem formulated as a 0–1 mixed-integer linear programming problem with cell transmission model. These three solution algorithms are based on two fundamental approaches. First, the 0–1 mixed-integer linear program is solved via linear relaxation (LR). Second, the non-integer solutions obtained from the LR are converted into the integer solutions by taking advantage of the underlying physical mechanism embedded in the LR solutions that lead to the optimal signal control. In particular, proportional capacities for different approaches and the cumulative exit flow at each intersection obtained from the LR solutions are utilized to determine green time allocation for each approach. It is demonstrated that the near-optimal solutions obtained with these algorithms are very close to the optimal solutions under both uncongested and congested traffic conditions.

Modular logistics service platform

Abstract: Providing customized services to satisfy the customers from different industry background is the emerging and critical issue of the success of the third party logistics company. This paper develops a modular logistics service platform for the third party logistics providers who are facing varied customer requirements from different industries, targeting quick identification of customer requirements and generation of comprehensive and modular logistics services in fast-changing customization environments. Three dimensions of the modular logistics service platform are identified, that is service, process, and activity, which reflects customer's individual requirements. By combining different existed modular components in the service platform, this proposed philosophy can be efficiently used to develop new services for both the existed customers and the new customers.

Predicting customer churn by integrating the effect of the customer contact network

Abstract: Customer retention is one of the most important tasks for many enterprises. In order to retain customers, customer churn prediction is necessary. This paper investigates the effects of network attributes on the accuracy of predicting customer churn. The contributions include the following: (1) a relatively complete set of network attributes are provided and incorporated into prediction models that are built using machine learning algorithms; (2) the effects of network attributes on prediction accuracy are measured while including the determinants proven to be effective by other researchers, and several models are constructed and compared to assess model effectiveness. This study uses a customer data set of a Chinese mobile telecommunication. The results show that the network attributes can greatly improve the prediction accuracy.

Streamlining grain supply chains of India: Cloud computing and distributed hubbing for wholesale-retail logistics

Abstract: Spoilage rates in India's grain supply chains have been estimated to be 25% to 30%. The price “mark-up” rates, i.e., service charges over crop costs, have been estimated to be over 240%, with a whopping 210% incurred by wholesalers, retailers and the intermediaries. The two rates in developed nations are approximately 3% and between 50% and 100%. This paper focuses on supply-chain portion from wholesalers through consumers and proposes service, information technology and logistics concepts to help reduce the two rates. In particular, cloud computing may help India bring the full benefit of IT to their small merchants through leap-frogging.

Research on producer service innovation in home-textile industrial cluster based on cloud computing platform

Abstract: This paper aims to explore the cloud computing based service innovation in home textile industrial clusters, which is regarded as a service system. Firstly, the challenges facing home textile industrial clusters (industrial upgrading, structural adjustment, and brand building & management) are analyzed. Secondly, the producer services in the cluster service system are studied. Moreover, it is proposed that the producer services can be enabled and enhanced by innovated cloud platform. The presented IT service platform based on cloud computing and SaaS (Software as a Service) can help enhance the competitiveness of the textile industrial clusters, even innovating the business model.

Greenolive: an open platform for wellness management ecosystem

Abstract: In this paper, we present Greenolive, an open platform for wellness management ecosystem. Wellness management applications, which facilitate preventive care and chronic disease treatments, are considered as a key component to enhance healthcare quality and reduce healthcare cost. Currently, most of the wellness management applications are device-oriented, stand-alone software and lack of open APIs that allow new value-added applications to be developed rapidly. Further, these wellness applications have not fully utilized the collected wellness monitoring data to generate new knowledge that can help people to further improve their wellness status. In this paper, we advocate an open platform that provides services that are essential to wellness management, and manages the services to be developed. Further, we adopt an elastic infrastructure to deal with scalability issues. We expect independent software vendors to develop new wellness management applications using the provided services and to deploy them on the platform. We believe such an ecosystem can greatly promote wellness management applications, much like we witness in other application domains, e.g., social network, enterprise resource management.

Measuring distortions of trade patterns: An application to China

Abstract: This study develops a new analytical framework for comparative advantages and net export capabilities. We devise the weighted H-index to capture the distortions of trade patterns under a technology based classification scheme. Using annual data from 1992 to 2008, we find that most categories have shown propensities for “positive distortions” which are featured with excessive net exports in relation to comparative advantages. Most H-indexes have been significantly positive and have tended to increase until the 2007 financial crisis, reflecting a strong mercantilist tendency in Chinese trade policies.

Data mining techniques to improve no-show forecasting

Abstract: In order to maximum the profit of each flight, the airlines always have some over-booking in one flight. Accurate forecasts of the expected number of noshows for each flight can increase airline revenue by reducing the number of spoiled seats and the number of involuntary denied boarding at the departure gate. In this paper, we develop a combined model to predict no-show rates using historical data and specific information on the individual passengers booked on each flight. Meanwhile, we propose some data mining techniques to improve no-show forecasting. A case study and the relative performance of some methods are introduced, together with some discussion on further research.

Using multi-source web data for epidemic surveillance: A case study of the 2009 Influenza A (H1N1) pandemic in Beijing

Abstract: Timely and effective surveillance is critical for the prevention and control of epidemics. However, due to technical challenges and shortage of human resources, comprehensive and timely data collection required for effective surveillance, especially collection of data about sudden epidemic outbreaks, is still very difficult. In this paper, we propose the use of multi-source web data for epidemic surveillance. We use the 2009 Influenza A (H1N1) pandemic in Beijing as a case study to demonstrate the utility of our proposed approach. Experiments using data from the Beijing Center for Disease Control and Prevention (CDC) and several search engines show encouraging results. This case study also has direct practical values in the real setting.

Travel Information Service system for public travel based on SOA

Abstract: Travel Information Service (TIS) is an important component in Intelligent Transportation System (ITS). Since variety of travel information may come from different enterprises or departments and same type of information services may have several providers, How to integrate these information for travelers to provide high-quality cross-platform and inter-enterprise information services has become an important issue in TIS. This paper presents a traffic information service system based on SOA, which allows travel information from different providers can be integrated together to provide high quality services for travelers. First the system architecture was designed, then the key technologies were researched including requirements identifying, registration, service matching and synthesizing etc. At last the experimental system illustrates the feasibility of these technologies.

Design and improvement of KPI system for materials management in power group enterprise

Abstract: This paper mainly focuses on the study about the improvement of materials performance management in power group enterprise based on the methodology of KPI (Key Performance Indicator). Firstly, a typical KPI approach is described from the perspectives of definitions, basic principles, design procedures and relevant researches. Next, a case study on KPI system design of “G” power group is done. The KPI system of power materials management and its corresponding information system are described and analyzed, and the existing problems are found out. Ultimately, the effective methods and suggestions are proposed to solve those problems, to improve the materials performance management, and to help the decision -making for “G” power group.

Two efficient constructive heuristics for scheduling trucks at crossdocking terminals

Abstract: This paper studies an important crossdocking planning operation which is the scheduling of trucks at cross-docking terminals. The operation consists of two optimization problems: truck sequencing and door assignment. The problems are integrated and formulated as a machine scheduling problem. Two constructive heuristics are developed to address truck scheduling: a dependency ranking (DR) heuristic for truck sequencing and a machine fitness (MF) heuristic for door assignment. The solutions generated by the heuristics are compared with those of an MIP model formulated for the same problem. Considering the constructive nature of the proposed heuristics where no optimization technique has been employed, the quality of results compared to that of the CPLEX solver is quite promising. Also, the heuristics maintain scalability in solution time as the problem size increases to large scales.

Multiple-floor facilities layout design

Abstract: This research is related to the layout design considering with problems of multi-floor and elevators' location designs. The attempts to achieve are basically minimizing both layout cost and flow distances among entire factory. The developing procedures include three stages: the first stage is to assign appropriate departments for each floor; the second stage is the traditional plant layout design within a floor; the third stage is to search feasible locations for different sets of elevators. The Threshold Accepting (TA) algorithm is used for finding feasible solution. This research also uses space filling curve (SFC) method to find the optimal solution for locating departments. The analyzed results show that the proposed procedures and methods can reduce 58.25% the vertical material handling cost compared used in the same example. This result also shows that the proposed method can obtain better performance than previews researches.

Modularity of service design for IT company

Abstract: Applying modular logic to service design is crucial to service innovation; however, both under-modularity and over-modularity results in strategic mistakes, in particular to the IT service offering companies. This paper firstly identifies four dimensions of the conceptual modular IT service platform for designing and providing service to the customers. And a mathematical model is developed and applied to evaluate the degree of modularity for the designed unique services.

Reverse logistics activities, the task environment, and performance: Taiwanese 3C retailers

Abstract: This study aimed to construct a comprehensive model examining the effects of the task environment on reverse logistics (RL) activities, and the resulting effects on both firm environmental and economic performance. Being the first of its kind to integrate three different literature streams: the task environment, RL activities, and performance, the study attempted to understand their linkages by conducting a large sample survey. Specifically, a questionnaire was adopted to conduct an investigation into the Taiwanese computer, communication, and consumer electronics (3C) retail industry. Based on 284 validated samples and with the use of structural equation modeling, it was found that certain dimensions of the task environment (government, suppliers, and customers) positively and significantly influence RL activities, whereas competitors do not have such influence. Moreover, RL activities positively and significantly influence both environmental and economic performance separately.

Information exchange in global logistics chains

Abstract: This research aims at providing a quantitative benefits assessment of enhancing the visibility in global supply chains In particular, we describe how we model physical and information processes in a global maritime supply chain, and how delays propagate under different information scenarios We describe how the model logic is validated in the context of a large scale project in which amongst others, port operators, shippers, customs, and logistics service providers are involved Preliminary simulation results indicate how different response measures impact the extent and number of delays in the system

A practitioner's tool for enterprise risk management capability assessment

Abstract: In this paper, we present a method and a tool to assess the maturity of an enterprise's capability to manage its risks. Akin to the software capability model we rate a firms' risk management capability on a scale from one-to-five. Gaps between the bottom-up reported capabilities and the top-down perceived capabilities, as well as the gaps between organizations are highlighted and provide a useful reality-check for companies in their quest to improve their enterprise risk management (ERM) capabilities and processes. Through an explicit association of ERM capabilities with the organization's business strategy, we provide a more focused assessment and pinpointing of hotspots. The method presented in this paper is supported by a practitioner tool that is currently being piloted in a large IT consulting organization.

The effect of demand representation on locating facilities in a supply chain network

Abstract: The objectives of a typical facility location problem is either to maximize the coverage with a given number of facilities or to minimize the number of facilities used to cover a given area. In recent years, it has been found that how demand is characterized in a facility location model can significantly affect the performance of facility location models. In a supply chain network the goal is often to maximize the demand coverage and minimize the total costs (construction, transaction, operation, etc.) subject to a set of constraints. In this paper, we explored the importance of demand representation in the context of a supply chain network and examined how a realistic representation of demand in a supply chain network would affect the network design. We first analyzed the general definition and characteristics of the facility location problem in a supply chain. We then examined the various objectives and constraints associated with the demand representation and formulated a multi-objectives model to address the facility location problem in a supply chain network. The overlap function of ArcGIS 9.3 was utilized and a solution procedure to the proposed problem was developed. Finally a numerical example was generated to examine the performance of the proposed model and its solution algorithm.

A fuzzy model on how the management affects a worker's state

Abstract: A worker's energy level, mood, skill level can affect her/his working performance. These factors can be regarded as the “state” of the worker and they affect the production. Also, these factors are affected by the management. In this way, the management affects the production. One important task of managing a factory is keeping the production in a high level and in a safe condition via improving the management. However, in the literature usually this is done in an exogenous way, that is, a survey is given and based on the survey result the management is improved. This paper provides a first step for “optimizing” the management in an endogenous and analytical way. We propose a framework based on which we can analyze how the management affects the state of the worker and then affects the production. The basic idea is that we regard the management as a control policy to control the state of a worker to make the worker-position fitness as good as possible. We admit that it is difficult to evaluate how the management affects the worker's state as this problem is closely related to the uncertainty rooted in the human-being. To attack this difficulty, we introduce the fuzzy method to model how the management affects a worker's state. By the method in this paper, reasonable results can be obtained, based on which the management can be improved. In the future, it may be possible to collect real data to improve the method in this paper.

Process-oriented software outsourcing decision based on genetic algorithm

Abstract: The execution process is critical to the success of a software outsourcing service. It defines the major roles and activities involved in delivering the outsourced software. This paper presents a process-oriented software outsourcing decision approach, which helps a client selecting appropriate vendors and defining the execution process that both the client and the vendors should comply with during the software outsourcing execution phase. First, decision impact factors are defined, which take into consideration characteristics of the project, of the client and of the vendors. For any given project, the value of each decision impact factor is acquired by sending a questionnaire to the stakeholders on both client and vendors sides. Then, the process decision based on factor values is conducted using genetic algorithm so that an optimized solution for vendor selection and process definition are generated. Simulation of the decision activity is conducted and it preliminarily verifies the feasibility of the approach.

A carbon capture and distribution network design problem for carbon emission reduction and utilization

Abstract: As global warming turns to be a very serious global problem, most worlds' major carbon emitting countries have enacted climate-change laws to tackle carbon emissions. Enterprises strike a balance between profit objective and emission reduction obligations. As capture technologies of carbon dioxide are getting economically feasible and operable in mature market, carbon dioxide can be captured to be used or sold for profit. This paper addresses carbon reduction and utilization strategy. A carbon capture and distribution network design problem is studied. A mathematical model of the addressed problem is proposed with the objective of maximizing the profit of the network on carbon reduction and utilization. Computational results have demonstrated the effectiveness of the model of the carbon capture and distribution network design problem.

Real-time Manufacturing Integration and Intelligence Solution applied in global process industry

Abstract: Global manufacturing companies meet a lot of challenges on enterprise level, plant level and shop floor level. To solve these challenges, a kind of real-time Manufacturing Integration and Intelligence (xMII) Solution is introduced to realize Adaptive Manufacturing (AM), where MII's key technologies, such as its connection with ERP modules, integration functionality with shop floor information technology (IT) systems, and xMII server, are generally described. By using the practical project executed in one global chemical company as background, the paper firstly introduces the project's “AS IS” situations, its “TO BE” targets, and its ERP solution. Then, MII solution of the project is discussed in more details, which include its business scopes, requirements, server selection, high availability solution, its technologies, and its main functions like Unloads, Customer Response Time. Finally, tactical benefits of this MII solution are listed, and some conclusions are drawn out.

Story extraction from the Web: A case study in security informatics

Abstract: Open source intelligence is becoming more and more important in security-related applications. Effective extraction of valuable information from these intelligence sources so as to understand the content of intelligence is one of the central issues in security domain. To address this key problem, this paper studies how to extract domain events and generate story representation of the events. We implement a story extraction platform (SEP) which applies pattern matching to extract events from Web news and organizes events based on theme using narrative structure. We also design extraction rules, use domain-specific features and employ ontology to facilitate story extraction in SEP. The experimental results show the effectiveness of our system in security informatics.