Data-driven Decisions in Supply Chains: Contracts, Algorithms and Efficiency
In "Seminars and talks"
Speakers
Ms. Xiaoyue Yan
Cornell University
Xiaoyue Yan is a PhD candidate in Operations, Technology & Information Management in Johnson Graduate School of Management at Cornell University. She is broadly interested in the modern transformations within the supply chains, focusing primarily on risk management and data-driven decision-making. Her approach involves stochastic modeling and data-driven methods with validation through real-world industry data. Her current work investigates the impact of data-driven decisions on contract performance and supply chain efficiency.
| Date: |
| Friday, 24 November 2023 |
| Time: |
| 10:00 am - 11:30 am |
| Venue: |
|
Hon Sui Sen Memorial Library Auditorium HSS 4-7 1 Hon Sui Sen Drive Singapore 117588 (Map) |
Abstract
| We study the performance of revenue sharing and wholesale price contracts in supply chains where firms make data-driven inventory/pricing decisions. In these supply chains, each tier uses historical and contemporaneous data on demand and demand-relevant covariates to directly arrive at their optimal decisions, as opposed to the traditional paradigm where demand estimates are first exogenously specified, followed by a separate optimization stage. We find that when there is a lot of historical data, or there are several covariates that tend to have positive skew and high variance, wholesale-price contracts tend to unexpectedly yield higher supply chain profits than revenue-sharing contracts—a stark contrast with well-known findings in the supply chain literature. |