Introduction to the Special Issue on Theory Development in Operations Management

Rigorous development of theory in operations management has been lacking. Although many theories have been proposed, they are often not developed in a format and depth that can be falsified, refined, or supported. This special issue includes three papers that illustrate rigorous development of theory for future testing using mathematical, simulation, or managerial approaches.     

Introduction to the Special Issue on Humanitarian Operations and Crisis Management

The Genesis of this Special Issue came from the Board of the POMS College on Humanitarian Operations and Crisis Management (HO&CM). It was seen as a necessary initiative to define the field and examine research opportunities. This Special Issue shows that humanitarian operations pose challenges for P/OM researchers and practitioners that differ markedly from those of conventional supply chains associated with profitable enterprises. On the basis of the eight articles in this Special Issue, we have described and demonstrated the unique characteristics of the POM/HO&CM interaction. We have also identified those attributes that tend to overlap with conventional aspects of POM. In addition to wanting to be cost effective, the issue of equity fairness is pervasive in humanitarian operations, and so is the need to always base considerations on “last‐mile logistics,” that is, getting aid to those in most need. Research is essential to determine how to train researchers to scout out and map the territory of the real problems. One of the most vexing problems is the lack of robust data in the humanitarian domain which is as richly varied as the types of disasters that can occur.     

Radiofrequency Identification Applications in Private and Public Sector Operations: Introduction to the Special Issue

This special issue of the Production and Operations Management journal offers a sample of ongoing research arising from the deployment of radiofrequency identification technology in organizational operations. The articles were selected to cover a spectrum of application areas and methodologies. There is also an attempt to identify interesting open areas for further investigation.     

Optimal Configuration of a Service Delivery Network: An Application to a Financial Services Provider

Driven by market pressures, financial service firms are increasingly partnering with independent vendors to create service networks that deliver greater profits while ensuring high service quality. In the management of call center networks, these partnerships are common and form an integral part of the customer care and marketing strategies in the financial services industry. For a financial services firm, configuring such a call center service network entails determining which partners to select and how to distribute service requests among vendors, while incorporating their capabilities, costs, and revenue‐generating abilities. Motivated by a problem facing a Fortune 500 financial services provider, we develop and apply a novel mixed integer programming model for the service network configuration problem. Our tactical decision support model effectively accounts for the firm's costs by capturing the impact of service requirements on vendor staffing levels and seat requirements, and permits imposing call routing preferences and auxiliary service costs. We implemented the model and applied it to data from an industry partner. Results suggest that our approach can generate considerable cost savings and substantial additional revenues, while ensuring high service quality. Results based on test instances demonstrate similar savings and outperform two rule‐based methods for vendor assignment.     

Introduction to the Special Issue on E‐Auctions for Procurement Operations

We present nine papers on e‐auctions for procurement operations. The first of the issue's three sections is a foreword highlighting current trends and future research directions. The second section is composed of three commissioned survey papers, covering auctions within e‐sourcing events, electronic markets for truckload transportation, and games and mechanism design in machine scheduling. The final section consists of five research papers on the following topics: whether auction parameters affect buyer surplus in e‐auctions for procurement, collusion in second‐price auctions under minimax regret, the effect of timing on jump bidding in ascending auctions, market‐based allocation with indivisible bids, and ranked items auctions and online advertisement.     

Introduction to the Special Issue on Marketing and Operations Management Interfaces and Coordination

In this special issue, the contributing authors address several emerging marketing and operations interface problems and develop innovative approaches for solving them. Specifically, by explicitly modeling active consumer behavior under different pricing schemes, the papers in this special issue examine how firms can coordinate their marketing and operations to improve their competitiveness and profit. The papers also provide insights on how to develop and operate new and innovative market mechanisms.     

Foreword: Special Issue on Retail Operations

This article draws on my field research in the retailing industry to identify the operational challenges faced by retailers and the relevance of those challenges to senior retail managers and researchers in operations management. It summarizes areas of research in retail operations that have evolved recently and are likely to be important in the future.     

Interruption and Forgetting in Knowledge‐Intensive Service Environments

An increasing barrier to productivity in knowledge‐intensive work environments is interruptions. Interruptions stop the current job and can induce forgetting in the worker. The induced forgetting can cause re‐work; to complete the interrupted job, additional effort and time is required to return to the same level of job‐specific knowledge the worker had attained prior to the interruption. This research employs primary observational and process data gathered from a hospital radiology department as inputs into a discrete‐event simulation model to estimate the effect of interruptions, forgetting, and re‐work. To help mitigate the effects of interruption‐induced re‐work, we introduce and test the operational policy of sequestering, where some service resources are protected from interruptions. We find that sequestering can improve the overall productivity and cost performance of the system under certain circumstances. We conclude that research examining knowledge‐intensive operations should explicitly consider interruptions and the forgetting rate of the system's human workers or models will overestimate the system's productivity and underestimate its costs.     

The Modern Call Center: A Multi‐Disciplinary Perspective on Operations Management Research

Call centers are an increasingly important part of today's business world, employing millions of agents across the globe and serving as a primary customer‐facing channel for firms in many different industries. Call centers have been a fertile area for operations management researchers in several domains, including forecasting, capacity planning, queueing, and personnel scheduling. In addition, as telecommunications and information technology have advanced over the past several years, the operational challenges faced by call center managers have become more complicated. Issues associated with human resources management, sales, and marketing have also become increasingly relevant to call center operations and associated academic research. In this paper, we provide a survey of the recent literature on call center operations management. Along with traditional research areas, we pay special attention to new management challenges that have been caused by emerging technologies, to behavioral issues associated with both call center agents and customers, and to the interface between call center operations and sales and marketing. We identify a handful of broad themes for future investigation while also pointing out several very specific research opportunities.     

Analysis of Two‐Level Support Systems with Time‐Dependent Overflow—A Banking Application

In this paper, we analyze the performance of call centers of financial service providers with two levels of support and a time‐dependent overflow mechanism. Waiting calls from the front‐office queue flow over to the back office if a waiting‐time limit is reached and at least one back‐office agent is available. The analysis of such a system with time‐dependent overflow is reduced to the analysis of a continuous‐time Markov chain with state‐dependent overflow probabilities. To approximate the system with time‐dependent overflow, some waiting‐based performance measures are modified. Numerical results demonstrate the reliability of this Markovian performance approximation for different parameter settings. A sensitivity analysis shows the impact of the waiting‐time limit and the dependence of the performance measures on the arrival rate.