Journal ArticleDOI
Analysis of back-office outsourcing contracts for financial services operations
Preetam Basu,Suresh K. Nair +1 more
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TLDR
This work studies capacity-based and volume-based contracts between a financial services firm and an outsourcing vendor and ascertains that neither contract is universally preferred, but cost and revenue structures along with demand characteristics determine contract choice.Abstract:
Managing back-office operations for financial services is a challenging task because of highly volatile and dynamic demand requirements. Lack of service inventories, the inability to backlog demand and significant shortage and overage costs complicate the problem. In such situations, outsourcing all or part of the demand to third-party vendors provides a viable and cost effective option for the firm. Motivated by the remittance processing operations of a Fortune 100 company we examine the usefulness of complementing in-house staffing with different outsourcing arrangements. We study capacity-based and volume-based contracts between a financial services firm and an outsourcing vendor. We examine the impact of demand characteristics on the parameters of contract choice. Through extensive numerical analysis, we ascertain that neither contract is universally preferred, but cost and revenue structures along with demand characteristics determine contract choice.read more
Citations
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Journal ArticleDOI
Supply chain management using put option contracts with information asymmetry
TL;DR: The results show that whereas semi-variance has appealing properties as a measure of risk, its use introduces analytical challenges that can only be overcome through numerical computation.
Journal ArticleDOI
A decision support system for mean-variance analysis in multi-period inventory control
Preetam Basu,Suresh K. Nair +1 more
TL;DR: An algorithm is developed that tracks variance as well as expected reward in a stochastic dynamic programming model for inventory control and uses the mean-variance solutions in a heuristic, RiskTrackr, to construct efficient frontiers which could be an ideal decision support tool for risk-reward analysis.
Journal ArticleDOI
Analyzing operational risk-reward trade-offs for start-ups
Preetam Basu,Suresh K. Nair +1 more
TL;DR: A novel approach to track mean as well as variance of a set of policies in a dynamic stochastic programming model and using the mean-variance solutions in a simple heuristic for creating efficient risk-reward frontiers is presented.
References
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Book ChapterDOI
Supply Chain Coordination with Contracts
TL;DR: This chapter extends the newsvendor model by allowing the retailer to choose the retail price in addition to the stocking quantity, and discusses an infinite horizon stochastic demand model in which the retailer receives replenishments from a supplier after a constant lead time.
Journal ArticleDOI
Commissioned Paper: Telephone Call Centers: Tutorial, Review, and Research Prospects
TL;DR: This work begins with a tutorial on how call centers function and proceed to survey academic research devoted to the management of their operations, which identifies important problems that have not been addressed and identifies promising directions for future research.
Journal ArticleDOI
Incentives versus transaction costs: a theory of procurement contracts
Patrick Bajari,Steven Tadelis +1 more
TL;DR: In this article, the authors propose a solution to the problem of procurement contracts in the context of contract negotiations, which they call Procurement Contracts (PC) and procurement contracts (PC).
Book ChapterDOI
Basel Committee On Banking Supervision
TL;DR: The Basel Committee's organizational structure is fluid as mentioned in this paper and is designed to facilitate consensus building to enhance understanding of key supervisory issues and to improve the quality of banking supervision worldwide.
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