A Responsive-Pricing Retailer Sourcing from Competing Suppliers Facing Disruptions

2021 ◽  
Author(s):  
Xi Shan ◽  
Tao Li ◽  
Suresh P. Sethi
Keyword(s):  
Low Cost ◽  
Geographic Location ◽  
Problem Definition ◽  
Production Costs ◽  
Sensitivity Analyses ◽  
Tier 2 ◽  
Product Price ◽  
Nash Game ◽  
Managerial Implications ◽  
Responsive Pricing

Problem definition: We study a problem of a retailer that orders from competing strategic suppliers subject to independent or correlated disruptions and responds by setting the retail price on delivery, called responsive pricing. The suppliers set their wholesale prices in a Nash game. Academic/practical relevance: Supplier disruption correlation exists for reasons such as product and service designs, geographic proximity, and common tier 2 suppliers. In practice, many retailers are able to set the product price after knowing the delivered quantity. Methodology: We model this problem as a Stackelberg–Nash game with the suppliers as the leaders and the retailer as the follower and obtain its equilibrium explicitly. We perform sensitivity analyses with respect to suppliers’ production costs, reliabilities, and their correlation. Results: We find, surprisingly, that an increase in the reliability of a supplier may, counter to our intuition, hurt it because of the competition between the suppliers selling to a responsive-pricing retailer. Furthermore, in contrast to the literature, we find that under responsive pricing, a high disruption correlation may benefit a supplier that has a cost advantage, and the total order quantity may increase in that correlation because of supplier competition. Managerial implications: This paper has important implications for unreliable suppliers because the way reliability and correlation influence their profits depends on the retailer’s pricing power and the competition intensity between the suppliers. With a responsive-pricing retailer, a supplier may not benefit from higher reliability but may benefit from a higher correlation. This suggests that a low-cost supplier serving a responsive-pricing retailer could add to its decision-making tools a new incentive of creating a positively correlated supply network by building plants in the geographic location of its competitor or sourcing from the same tier 2 supplier to obtain an increased correlation strategically.

Designing Sustainable Products Under Coproduction Technology

2020 ◽  
Vol 22 (6) ◽  
pp. 1181-1198
Author(s):  
Yen-Ting Lin ◽  
Haoying Sun ◽  
Shouqiang Wang
Keyword(s):  
Product Line ◽  
Problem Definition ◽  
Policy Implications ◽  
Raw Material ◽  
Sensitivity Analyses ◽  
Business Practices ◽  
Green Consumers ◽  
Sustainable Products ◽  
Environmental Value ◽  
Managerial Implications

Problem definition: A manufacturer takes raw material with an exogenous quality distribution to make a traditional product and a coproduct using material of quality above and below a well-established standard, respectively. The market consists of traditional consumers, who are only willing to pay for a product’s consumption value, and some environmentally conscious (i.e., green) consumers, who additionally value the product’s material conservation. In this context, we study the firm’s optimal design of its coproduct, that is, its quality and price decisions. Academic/practical relevance: Motivated by emerging conservation-oriented business practices exemplified by companies such as Taylor Guitars, our study informs resource-dependent firms whether and how to design their product line to leverage a coproduct’s environmental value. Our findings also yield important policy implications regarding the conservation of natural resources. Methodology: We formulate and solve the firm’s challenge as a constrained optimization problem, supplemented with extensive sensitivity analyses and robustness tests. Results: When the material cost is intermediate and consumers are not sufficiently green, the firm should position the coproduct without exploiting its environmental value. Otherwise, the firm should position the coproduct by extracting its environmental value from green consumers, in which case the firm may strategically abandon some traditional consumers by leaving their demand unfulfilled. Managerial implications: Quotas and taxation on material supply in general act as policy substitutes. A greener market may inadvertently result in higher resource consumption and waste. Quotas can mitigate such adverse effects.

scholarly journals Costs and Cost-Effectiveness of User-Testing of Health Professionals’ Guidelines to Reduce the Frequency of Intravenous Medicines Administration Errors by Nurses in the United Kingdom: A Probabilistic Model Based on Voriconazole Administration

2021 ◽  
Author(s):  
Matthew D. Jones ◽  
Bryony Dean Franklin ◽  
D. K. Raynor ◽  
Howard Thom ◽  
Margaret C. Watson ◽  
...  
Keyword(s):  
Cost Effectiveness ◽  
Medication Error ◽  
Low Cost ◽  
Cost Savings ◽  
Credible Interval ◽  
Probability Of Detection ◽  
Sensitivity Analyses ◽  
Decision Analytic Model ◽  
Published Data ◽  
User Testing

Abstract Aim In the UK, injectable medicines are often prepared and administered by nurses following the Injectable Medicines Guide (IMG). Our earlier study confirmed a higher frequency of correct administration with user-tested versus standard IMG guidelines. This current study aimed to model the cost-effectiveness of user-testing. Methods The costs and cost-effectiveness of user-testing were explored by modifying an existing probabilistic decision-analytic model. The adapted model considered administration of intravenous voriconazole to hospital inpatients by nurses. It included 11 error types, their probability of detection and level of harm. Model inputs (including costs) were derived from our previous study and other published data. Monte Carlo simulation using 20,000 samples (sufficient for convergence) was performed with a 5-year time horizon from the perspective of the 121 NHS trusts and health boards that use the IMG. Sensitivity analyses were undertaken for the risk of a medication error and other sources of uncertainty. Results The net monetary benefit at £20,000/quality-adjusted life year was £3,190,064 (95% credible interval (CrI): −346,709 to 8,480,665), favouring user-testing with a 96% chance of cost-effectiveness. Incremental cost-savings were £240,943 (95% CrI 43,527–491,576), also favouring user-tested guidelines with a 99% chance of cost-saving. The total user testing cost was £6317 (95% CrI 6012–6627). These findings were robust to assumptions about a range of input parameters, but greater uncertainty was seen with a lower medication error risk. Conclusions User-testing of injectable medicines guidelines is a low-cost intervention that is highly likely to be cost-effective, especially for high-risk medicines.

scholarly journals Extraction of short chain chitooligosaccharides from fungal biomass and their use as promoters of arbuscular mycorrhizal symbiosis

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Andrea Crosino ◽  
Elisa Moscato ◽  
Marco Blangetti ◽  
Gennaro Carotenuto ◽  
Federica Spina ◽  
...  
Keyword(s):  
Fungal Biomass ◽  
Large Scale ◽  
Low Cost ◽  
Trichoderma Viride ◽  
Arbuscular Mycorrhizal ◽  
Am Fungi ◽  
Production Costs ◽  
Short Chain ◽  
Mycorrhizal Symbiosis ◽  
Major Interest

AbstractShort chain chitooligosaccharides (COs) are chitin derivative molecules involved in plant-fungus signaling during arbuscular mycorrhizal (AM) interactions. In host plants, COs activate a symbiotic signalling pathway that regulates AM-related gene expression. Furthermore, exogenous CO application was shown to promote AM establishment, with a major interest for agricultural applications of AM fungi as biofertilizers. Currently, the main source of commercial COs is from the shrimp processing industry, but purification costs and environmental concerns limit the convenience of this approach. In an attempt to find a low cost and low impact alternative, this work aimed to isolate, characterize and test the bioactivity of COs from selected strains of phylogenetically distant filamentous fungi: Pleurotus ostreatus, Cunninghamella bertholletiae and Trichoderma viride. Our optimized protocol successfully isolated short chain COs from lyophilized fungal biomass. Fungal COs were more acetylated and displayed a higher biological activity compared to shrimp-derived COs, a feature that—alongside low production costs—opens promising perspectives for the large scale use of COs in agriculture.

scholarly journals Mendelian randomisation for psychiatry: how does it work, and what can it tell us?

2021 ◽  
Author(s):  
Robyn E. Wootton ◽  
Hannah J. Jones ◽  
Hannah M. Sallis
Keyword(s):  
Risk Factors ◽  
Mental Illness ◽  
Risk Factor ◽  
Low Cost ◽  
Sensitivity Analyses ◽  
Mendelian Randomisation ◽  
Naturally Occurring ◽  
Complementary Approach ◽  
Randomised Control Trials ◽  
Successful Prevention

AbstractThe successful prevention of mental illness relies upon the identification of causal, modifiable risk factors. However, observational evidence exploring such risk factors often produces contradictory results and randomised control trials are often expensive, time-consuming or unethical to conduct. Mendelian randomisation (MR) is a complementary approach that uses naturally occurring genetic variation to identify possible causal effects between a risk factor and an outcome in a time-efficient and low-cost manner. MR utilises genetic variants as instrumental variables for the risk factor of interest. MR studies are becoming more frequent in the field of psychiatry, warranting a reflection upon both the possibilities and the pitfalls. In this Perspective, we consider several limitations of the MR method that are of particular relevance to psychiatry. We also present new MR methods that have exciting applications to questions of mental illness. While we believe that MR can make an important contribution to the field of psychiatry, we also wish to emphasise the importance of clear causal questions, thorough sensitivity analyses, and triangulation with other forms of evidence.

scholarly journals Properties of Low-Cost WPCs Made from Alien Invasive Trees and rLDPE for Interior Use in Social Housing

Polymers ◽  
2021 ◽  
Vol 13 (15) ◽  
pp. 2436
Author(s):  
Abubakar Sadiq Mohammed ◽  
Martina Meincken
Keyword(s):  
Tensile Strength ◽  
Water Absorption ◽  
Social Housing ◽  
Low Cost ◽  
Production Costs ◽  
Low Density Polyethylene ◽  
Low Grade ◽  
Low Density ◽  
Invasive Trees ◽  
Recycled Low Density Polyethylene

Low-cost wood–plastic composites (WPCs) were developed from invasive trees and recycled low-density polyethylene. The aim was to produce affordable building materials for low-cost social housing in South Africa. Both raw materials are regarded as waste materials, and the subsequent product development adds value to the resources, while simultaneously reducing the waste stream. The production costs were minimised by utilising the entire biomass of Acacia saligna salvaged from clearing operations without any prior processing, and low-grade recycled low-density polyethylene to make WPCs without any additives. Different biomass/plastic ratios, particle sizes, and press settings were evaluated to determine the optimum processing parameters to obtain WPCs with adequate properties. The water absorption, dimensional stability, modulus of rupture, modulus of elasticity, tensile strength, and tensile moduli were improved at longer press times and higher temperatures for all blending ratios. This has been attributed to the crystallisation of the lignocellulose and thermally induced cross-linking in the polyethylene. An increased biomass ratio and particle size were positively correlated with water absorption and thickness swelling and inversely related with MOR, tensile strength, and density due to an incomplete encapsulation of the biomass by the plastic matrix. This study demonstrates the feasibility of utilising low-grade recycled polyethylene and the whole-tree biomass of A. saligna, without the need for pre-processing and the addition of expensive modifiers, to produce WPCs with properties that satisfy the minimum requirements for interior cladding or ceiling material.

From a Seed to a Need: the Growth of Shape Memory Applications in Europe.

1991 ◽  
Vol 246 ◽  
Author(s):  
Ir. J. Van Humbeeck
Keyword(s):  
Shape Memory ◽  
Low Cost ◽  
Marketing Research ◽  
Research Approach ◽  
Manufacturing Cost ◽  
Product Price ◽  
Key Factor ◽  
Place Promotion ◽  
Memory Applications ◽  
The Cost

AbstractA more systematic marketing research approach has finally revealed good ideas anticipating a market need for the use of shape memory alloys. The success of those new ideas, prototypes and applications are analysed in terms of “the value of the function”, defined as the importance of the function divided by the cost of providing the function. A high importance and/or a low cost of the function are thus the basic requirements for the successful introduction of shape memory applications. Attention is also paid to the way how the 4 P's, product, price, place, promotion (the marketing mix) are applied by the European companies. Those different items will be illustrated on the basis of some small-, medium- and largescale applications, used in different markets. “to the point research”, fundamental and applied, on material properties as well as on manufacturing (cost reduction) is being discussed as the key factor to increase the function value.

Partial Completion as a Nonprofit Strategy

2021 ◽  
Author(s):  
Can Zhang ◽  
Atalay Atasu ◽  
Karthik Ramachandran
Keyword(s):  
Nonprofit Organizations ◽  
Service Provision ◽  
Problem Definition ◽  
Product Service ◽  
Service Portfolio ◽  
Wide Range ◽  
Partial Completion ◽  
Innovative Solution ◽  
Managerial Implications ◽  
Level 3

Problem definition: Faced with the challenge of serving beneficiaries with heterogeneous needs and under budget constraints, some nonprofit organizations (NPOs) have adopted an innovative solution: providing partially complete products or services to beneficiaries. We seek to understand what drives an NPO’s choice of partial completion as a design strategy and how it interacts with the level of variety offered in the NPO’s product or service portfolio. Academic/practical relevance: Although partial product or service provision has been observed in the nonprofit operations, there is limited understanding of when it is an appropriate strategy—a void that we seek to fill in this paper. Methodology: We synthesize the practices of two NPOs operating in different contexts to develop a stylized analytical model to study an NPO’s product/service completion and variety choices. Results: We identify when and to what extent partial completion is optimal for an NPO. We also characterize a budget allocation structure for an NPO between product/service variety and completion. Our analysis sheds light on how beneficiary characteristics (e.g., heterogeneity of their needs, capability to self-complete) and NPO objectives (e.g., total-benefit maximization versus fairness) affect the optimal levels of variety and completion. Managerial implications: We provide three key observations. (1) Partial completion is not a compromise solution to budget limitations but can be an optimal strategy for NPOs under a wide range of circumstances, even in the presence of ample resources. (2) Partial provision is particularly valuable when beneficiary needs are highly heterogeneous, or beneficiaries have high self-completion capabilities. A higher self-completion capability generally implies a lower optimal completion level; however, it may lead to either a higher or a lower optimal variety level. (3) Although providing incomplete products may appear to burden beneficiaries, a lower completion level can be optimal when fairness is factored into an NPO’s objective or when beneficiary capabilities are more heterogeneous.

Tool Approach Directions for Machining Protrusion and Depression Features in an Object

1990 ◽  
Author(s):  
Chandrasekhar Karra ◽  
Thomas A. Phelps
Keyword(s):  
Product Development ◽  
Product Design ◽  
Tool Path ◽  
Low Cost ◽  
Production Costs ◽  
Competitive Market ◽  
Process Plans ◽  
Manufacturing Problems ◽  
Lower Production

Abstract The success of any industry in today’s highly competitive market is largely dependent on its ability to produce quality products, quickly and at low cost. Evaluating the effect of a product design on its manufacture is crucial in developing efficient designs. Any potential manufacturing problems detected at this stage can be corrected by modifying the design, leading to shorter product development cycles and lower production costs. This paper presents an algorithm to determine feasible tool approach directions. The algorithm is based on detecting if any part of the object obstructs the tool path. The basis for the algorithm is determining feasible approach directions and clearances around a planar polygonal face. The algorithm is applicable to both protrusions and depressions. The information is useful in performing manufacturability analysis of designs and develop process plans.

The Effects of Patent Extension and Take-Back Regulation on Green Pharmacy

2021 ◽  
Author(s):  
Tianqin Shi ◽  
Nicholas C. Petruzzi ◽  
Dilip Chhajed
Keyword(s):  
Pharmaceutical Industry ◽  
Social Welfare ◽  
Technical Information ◽  
Problem Definition ◽  
Theoretic Model ◽  
Innovative Company ◽  
Take Back ◽  
Starting Point ◽  
European Environmental Agency ◽  
Managerial Implications

Problem definition: The eco-toxicity arising from unused pharmaceuticals has regulators advocating the benign design concept of “green pharmacy,” but high research and development expenses can be prohibitive. We therefore examine the impacts of two regulatory mechanisms, patent extension and take-back regulation, on inducing drug manufacturers to go green. Academic/practical relevance: One incentive suggested by the European Environmental Agency is a patent extension for a company that redesigns its already patented pharmaceutical to be more environmentally friendly. This incentive can encourage both the development of degradable drugs and the disclosure of technical information. Yet, it is unclear how effective the extension would be in inducing green pharmacy and in maximizing social welfare. Methodology: We develop a game-theoretic model in which an innovative company collects monopoly profits for a patented pharmaceutical but faces competition from a generic rival after the patent expires. A social-welfare-maximizing regulator is the Stackelberg leader. The regulator leads by offering a patent extension to the innovative company while also imposing take-back regulation on the pharmaceutical industry. Then the two-profit maximizing companies respond by setting drug prices and choosing whether to invest in green pharmacy. Results: The regulator’s optimal patent extension offer can induce green pharmacy but only if the offer exceeds a threshold length that depends on the degree of product differentiation present in the pharmaceutical industry. The regulator’s correspondingly optimal take-back regulation generally prescribes a required collection rate that decreases as its optimal patent extension offer increases, and vice versa. Managerial implications: By isolating green pharmacy as a potential target to address pharmaceutical eco-toxicity at its source, the regulatory policy that we consider, which combines the incentive inherent in earning a patent extension on the one hand with the penalty inherent in complying with take-back regulation on the other hand, serves as a useful starting point for policymakers to optimally balance economic welfare considerations with environmental stewardship considerations.

Truthful Mechanisms for Medical Surplus Product Allocation

2020 ◽  
Vol 22 (4) ◽  
pp. 735-753 ◽  
Author(s):  
Can Zhang ◽  
Atalay Atasu ◽  
Turgay Ayer ◽  
L. Beril Toktay
Keyword(s):  
Private Information ◽  
Value Added ◽  
Information Provision ◽  
Problem Definition ◽  
Preference Ranking ◽  
Additional Increase ◽  
Healthcare Facilities ◽  
Selection Decisions ◽  
Managerial Implications ◽  
Recipient Selection

Problem definition: We analyze a resource allocation problem faced by medical surplus recovery organizations (MSROs) that recover medical surplus products to fulfill the needs of underserved healthcare facilities in developing countries. The objective of this study is to identify implementable strategies to support recipient selection decisions to improve MSROs’ value provision capability. Academic/practical relevance: MSRO supply chains face several challenges that differ from those in traditional for-profit settings, and there is a lack of both academic and practical understanding of how to better match supply with demand in this setting where recipient needs are typically private information. Methodology: We propose a mechanism design approach to determine which recipient to serve at each shipping opportunity based on recipients’ reported preference rankings of different products. Results: We find that when MSRO inventory information is shared with recipients, the only truthful mechanism is random selection among recipients, which defeats the purpose of eliciting information. Subsequently, we show that (1) eliminating inventory information provision enlarges the set of truthful mechanisms, thereby increasing the total value provision; and (2) further withholding information regarding other recipients leads to an additional increase in total value provision. Finally, we show that under a class of implementable mechanisms, eliciting recipient valuations has no value added beyond eliciting preference rankings. Managerial implications: (1) MSROs with large recipient bases and low inventory levels can significantly improve their value provision by appropriately determining the recipients to serve through a simple scoring mechanism; (2) to truthfully elicit recipient needs information to support the recipient selection decisions, MSROs should withhold inventory and recipient-base information; and (3) under a set of easy-to-implement scoring mechanisms, it is sufficient for MSROs to elicit recipients’ preference ranking information. Our findings have already led to a change in the practice of an award-winning MSRO.

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