How customer satisfaction with respect to price and quality affects customer retention: an integrated approach considering nonlinear effects

There is consensus in the marketing literature that satisfaction of customers concerning the perceived quality and pricing of products or services is critical for customer retention. In contrast, there is lack of empirical evidence about the exact functional relationship. Using parametric and nonparametric regression, this contribution empirically investigates whether and to what extent nonlinear effects of and interaction effects between both satisfaction dimensions affect customer retention. The empirical results do not only reveal complex nonlinear effects for those satisfaction-retention relationships, respectively, but also indicate strong interaction effects of both satisfaction dimensions on customer retention. Furthermore, nonparametric approaches prove to be more flexible than parametric approaches to model complex interactions.     

Impacts of buyers' order batching on the supplier's demand correlation and capacity utilization in a branching supply chain

There are several ways for a manufacturer to cope with demand uncertainty, e.g. inventories, capacity and cash. Among these, this study focuses on the second one, the capacity, especially on the problem of investing in flexible facilities and enhancing their utilization via demand management. In a supply chain, demands that an upstream firm (supplier) faces are the purchase orders from the downstream members (buyers). We analyse the impacts of buyers' order batching on the supplier's demand correlation and capacity utilization in a simple branching supply chain, where a supplier does business with two buyers whose market demands are correlated. Our results show that: (i) a supplier whofacesa smaller demand correlation coefficient (i.e. closer to-1) would invest more in flexible facilities; (ii) an increase in order lot size mitigates the correlation of purchase orders; and (iii) a supplier whose facilities are flexible would prefer frequent orders with smaller lots only when market demands are highly negatively correlated. This means that even suppliers whose facilities are flexible would rather prefer infrequent orders with larger lots in the presence of positively correlated demands. Additionally, some managerial implications are discussed.     

Rough set-based approach to feature selection in customer relationship management

In this paper, application of the rough set theory (RST) to feature selection in customer relationship management (CRM) is introduced. Compared to other methods, the RST approach has the advantage of combining both qualitative and quantitative information in the decision analysis, which is extremely important for CRM. To derive the decision rules from historical data for identifying features that contribute to CRM, both the mathematical formulation and the heuristic algorithm are developed in this paper. The proposed algorithm is comprised of both equal and unequal weight cases of the feature content with the limitation of the mathematical models. This algorithm is able to derive the rules and identify the most significant features simultaneously, which is unique and useful in solving CRM problems. A case study of a video game system purchase is validated by historical data, and the results showed the practical viability of the RST approach for predicting customer purchasing behavior. This paper forms the basis for solving many other similar problems that occur in the service industry.     

A hard clustering approach to the part family formation problem

The part family problem in group technology can be stated as the problem of finding the best grouping of parts into families such that the parts within each family are as similar to each other as possible. In this paper, the part family formation problem is considered. The problem is cast into a hard clustering model, and the k-means algorithm is proposed for solving it. Preliminary computational experience on the algorithm is very encouraging and it shows that real-life problems of large sizes can efficiently be handled by this approach.     

An optimal product-reconfiguration policy due to order changes

Abstract

It is not an uncommon problem that a finished product cannot be delivered to its customer due to order change. In many real-life applications, such as rack-mounted computer products, it is possible to reconfigure a product by altering the combination of its components. Therefore, an inventory item, resulting from a cancelled order, can be handled in one of two ways: (1) keep the product in storage for a future order; or (2) send the product back to the manufacturing Door for reconfiguration in accordance with a new order A wise decision can be made by evaluating the trade-off between the inventory cost and the conversion cost. This paper presents an optimization procedure for achieving the minimum-cost solution. The problem is formulated by a quadratic programming model. Under a fairly general condition, the problem can be converted into a standard capacitated transportation problem and, therefore, can be solved efficiently. The cost structure, problem formulation, and solution technique arc discussed.     

Fuzzy LINMAP approach to heterogeneous MADM considering comparisons of alternatives with hesitation degrees

Multiattribute decision making (MADM) with multiple formats of information, which is called heterogeneous MADM for short, is very complex and interesting in applications. The purpose of this paper is to extend the Linear Programming Technique for Multidimensional Analysis of Preference (LINMAP) for solving heterogeneous MADM problems which involve intuitionistic fuzzy (IF) sets (IFSs), trapezoidal fuzzy numbers (TrFNs), intervals and real numbers. In this method, DM's preference is given through pair-wise comparisons of alternatives with hesitation degrees which are represented as IFSs. The IF consistency and inconsistency indices are defined on the basis of pair-wise comparisons of alternatives. Each alternative is assessed on the basis of its distance to a fuzzy ideal solution (FIS) unknown a priori. Based on the defined IF consistency and inconsistency indices, we construct a new fuzzy mathematical programming model, which is solved by the developed method of fuzzy mathematical programming with IFSs. Once the FIS and the attribute weights are obtained, we can calculate the distances of all alternatives to the FIS, which are used to determine the ranking order of the alternatives. A supplier selection example is presented to demonstrate the validity and applicability of the proposed method.     

Fuzzy LINMAP approach to heterogeneous MADM considering comparisons of alternatives with hesitation degrees

Multiattribute decision making (MADM) with multiple formats of information, which is called heterogeneous MADM for short, is very complex and interesting in applications. The purpose of this paper is to extend the Linear Programming Technique for Multidimensional Analysis of Preference (LINMAP) for solving heterogeneous MADM problems which involve intuitionistic fuzzy (IF) sets (IFSs), trapezoidal fuzzy numbers (TrFNs), intervals and real numbers. In this method, DM's preference is given through pair-wise comparisons of alternatives with hesitation degrees which are represented as IFSs. The IF consistency and inconsistency indices are defined on the basis of pair-wise comparisons of alternatives. Each alternative is assessed on the basis of its distance to a fuzzy ideal solution (FIS) unknown a priori. Based on the defined IF consistency and inconsistency indices, we construct a new fuzzy mathematical programming model, which is solved by the developed method of fuzzy mathematical programming with IFSs. Once the FIS and the attribute weights are obtained, we can calculate the distances of all alternatives to the FIS, which are used to determine the ranking order of the alternatives. A supplier selection example is presented to demonstrate the validity and applicability of the proposed method.     

An approach to teaching documents courses

This article discusses three class projects used in one-semester documents courses and drawing upon the resources of Federal depository libraries. It also encourages more treatment of documents education in the literature of librarianship.     

An adaptive approach to shop loading

This paper extends previous approaches to loading job shops by simultaneously considering work in progress, inventory levels as well as work load smoothing. The approach is based on a heuristic and is relatively simple in application to a practical manufacturing system. A further enhancement is proposed using a computer search routine to home in on desirable performance. The search routine sets the values of coefficients in the heuristic and so gives a loading procedure that adapts to a particular manufacturing system. The overall results indicate that the approaches proposed give substantial benefits over previous methods.     

An approach to the impaired physician

The 1988 California Administrative Code requiring all acute care medical staffs to provide assistance to impaired physicians has not resulted in an increase in the annual census in the Medical Board of California Diversion Program. In part, this lack of an increase is due to the failure of some hospitals to form physician aid committees and to the poor functioning of such committees in other hospitals. The common reasons for these deficiencies are that the medical staff leadership does not think there are any impaired physicians on staff and that they don't know what the committee would do if it were formed. This attitude demonstrates a lack of appreciation for the prevalence of impaired physicians and the tremendous amount of work required (establishing policies and procedures) to identify and help them. This article discusses the prevalence of the impaired physician, the types of impaired physicians, a "cookbook" approach to managing these physicians, and the success of intervention.     

An information-task approach to organizational communication

Considering communication as an organizational task, this article suggests three variables (availability, uniformity, and independence) that characterize the information task at the work unit level and explicates their dependence on strategic choices by work units. Three sets of propositions are developed relating information task characteristics to: (a) organizational task variables; (b) the organization's communication structure; (c) power and influence in the organization. Implications of the framework are considered.     

A two-stage stochastic programming approach to employee scheduling in retail outlets with uncertain demand

This paper describes an employee scheduling system for retail outlets; it is a constraint-based system that exploits forecasts and stochastic techniques to generate schedules meeting the demand for sales personnel. Uncertain scenarios due to fluctuating demand are taken into account to develop a stochastic operational optimization of staffing levels. Mathematically, the problem is stated as a mixed-integer linear programming problem. Simulations with store data belonging to a major Swiss retailer show the effective performance of the proposed approach. The schedule quality is assessed through comparison with a deterministic scheduling package, which has been used at several outlets in Switzerland.     

An interaction orientation approach to SME-Intermediaries relationships

Small and medium-sized enterprises (SMEs) engaging in foreign operations have drawn significant research attention in recent years. One of the aspects linked to such operations is SMEs’ expansion to foreign markets, often relying on local intermediaries. These intermediaries provide the firms with valuable resources such as market knowledge and recognition and reduce foreign operations’ costs. Hence, they are often considered as strategic partners. The current study aims to expand the existing knowledge regarding the relationships between business to business SMEs and their intermediaries by exploring interaction orientation as an organizational cultural aspect and its linkage to the trust-conflicts balance. Based on a survey of 165 international venture managers, complemented by in-depth interviews with 16 senior export managers, we found that by incorporating interaction-orientation constructs into the relationship management, SMEs can enhance affective trust while mitigating conflicts. We also reveal that the impact of emotional and task conflicts on SMEs’ performance is mediated through calculative trust, indicating the benefits of balancing between relational and formal governance.     

An agent-based approach to modelling virtual enterprises

This paper describes how virtual enterprises (VEs) can be modelled using the AGORA multi-agent architecture, designed for modelling and supporting cooperative work among distributed entities. The model consists of a structure of AGORAs and agents, where AGORAs are facilitators of cooperative work for agents and the agents represent the partners of the VE, the cooperative mechanisms and the service providers. The distributed and goal-oriented nature of the VE provides a strong motivation for the use of agents to model VEs. The main advantages of this approach are that the structure of AGORAs provides a homogeneous modelling environment throughout the life cycle of the VE, traceability of the VE activities and a history of the VE. In addition to these, it is important to point out that, agents being computational entities, the resulting model provides an easy and efficient passage from the model to the computational support that is required by the VE.     

An optimal credit policy to increase supplier's profits with price-dependent demand functions

This paper deals with the problem of determining an optimal length of credit period from the perspective of supplier. We assume that a retailer jointly determines the unit retail price and order size to maximize profit when he/she purchases a product for which the supplier offers a trade credit. Two widely used demand functions are adopted for the study in which demands are decreasing functions of the retail price. A procedure is presented which shows how to achieve an optimal length of credit period for suppliers. The effects of credit period on the behaviour of retailers are also investigated using an example.     

An analytical approach to prototype vehicle test scheduling

The test planning group within Ford׳s Product Development division develops schedules for building prototype vehicles and assigning them to departments in charge of different vehicle components, systems and aspects (e.g., powertrain, electrical, safety). These departments conduct tests at pre-production phases of each vehicle program (e.g., 2015 Ford Fusion, 2016 Ford Escape) to ensure the vehicles meet all requirements by the time they reach the production phase. Each prototype can cost in excess of $200 K because many of the parts and the prototypes themselves are hand-made and highly customized. Parts needed often require months of lead time, which constrains when vehicle builds can start. That, combined with inflexible deadlines for completing tests on those prototypes introduces significant time pressure, an unavoidable and challenging reality. One way to alleviate time pressure is to build more prototype vehicles; however, this would greatly increase the cost of each program. A more efficient way is to develop test plans with tight schedules that combine multiple tests on vehicles to fully utilize all available time. There are many challenges that need to be overcome in implementing this approach, including complex compatibility relationships between the tests and destructive nature of, e.g., crash tests. We introduce analytical approaches for obtaining efficient schedules to replace the tedious manual scheduling process engineers undertake for each program. Our models and algorithms save test planners׳ and engineers׳ time, increases their ability to quickly react to program changes, and save resources by ensuring maximal vehicle utilization.     

An approach to stochastic programming for medium term planning

A number of methods of obtaining the distribution of the optimum of the ‘wait and see’ stochastic programming model have been proposed, but computational experience for these is currently limited to the solution of small problems. The purpose of this paper is to discuss the role of the ‘wait and see’ model in planning, and to propose a method of analysis based on the minimax and maximax decision criteria. The approach requires the solution of a special class of non-linear programming problems. Computational results to date suggest that it will be possible to analyse practically sized problems in this way.     

An integrated hybrid approach to the examination timetabling problem

This paper is derived from an interest in the development of automated approaches to tackle examination timetabling problems effectively. We propose a hybrid approach that incorporates effective heuristic operators within the great deluge algorithm. The latter was chosen because of consistently good performances being reported within the examination timetabling research domain. The additional heuristic procedures further enhance the overall effectiveness of this integrated hybrid approach. These procedures are drawn from methodologies that have appeared in the literature under term the “electromagnetic-like mechanism”. The aim is to move sample points towards a high quality solution while avoiding local optima by utilising a calculated force value. This value, which is calculated dynamically, is treated as a decay rate in determining the level within the great deluge algorithm. To evaluate the proposed algorithm, we carry out experimental work on two types of examination timetabling datasets. All the related results and analysis obtained illustrate that this hybrid approach is effective when compared with existing approaches in the literature.