Clickstream Data and Inventory Management: Model and Empirical Analysis

We consider firms that feature their products on the Internet but take orders offline. Click and order data are disjoint on such non‐transactional websites, and their matching is error‐prone. Yet, their time separation may allow the firm to react and improve its tactical planning. We introduce a dynamic decision support model that augments the classic inventory planning model with additional clickstream state variables. Using a novel data set of matched online clickstream and offline purchasing data, we identify statistically significant clickstream variables and empirically investigate the value of clickstream tracking on non‐transactional websites to improve inventory management. We show that the noisy clickstream data is statistically significant to predict the propensity, amount, and timing of offline orders. A counterfactual analysis shows that using the demand information extracted from the clickstream data can reduce the inventory holding and backordering cost by 3% to 5% in our data set.     

Designing Efficient Infrastructural Investment and Asset Transfer Mechanisms in Humanitarian Supply Chains

We analyze the efficacy of different asset transfer mechanisms and provide policy recommendations for the design of humanitarian supply chains. As a part of their preparedness effort, humanitarian organizations often make decisions on resource investments ex ante because doing so allows for rapid response if an adverse event occurs. However, programs typically operate under funding constraints and donor earmarks with autonomous decision‐making authority resting with the local entities, which makes the design of efficient humanitarian supply chains a challenging problem. We formulate this problem in an agency setting with two independent aid programs, where different asset transfer mechanisms are considered and where investments in resources are of two types: primary resources that are needed for providing the aid and infrastructural investments that improve the operation of the aid program in using the primary resources. The primary resources are acquired from earmarked donations. We show that allowing aid programs the flexibility of transferring primary resources improves the efficiency of the system by yielding greater social welfare than when this flexibility does not exist. More importantly, we show that a central entity that can acquire primary resources from one program and sell them to the other program can further improve system efficiency by providing a mechanism that facilitates the transfer of primary resources and eliminates losses from gaming. This outcome is achieved without depriving the individual aid programs of their decision‐making autonomy while maintaining the constraints under which they operate. We find that outcomes with centralized resource transfer but decentralized infrastructural investments by the aid programs are the same as with a completely centralized system (where both resource transfer and infrastructural investments are centralized).     

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.     

Our population predicament: a new look

Issued to mark the Population Reference Bureau's 50th anniversary, this issue updates the story of world population presented in its popular predecessor of 1971, "Man's Population Predicament." Estimated at 1/2 billion in 1650, world population reached about 2 billion in 1930, 4 billion in 1975, and is projected to be about 6 billion in 2000. Most of today's rapid growth is occurring among the 3/4 of the world's peoples living in less developed countries where the post-World War II gap between high birth rates and falling death rates has only recently begun to narrow. This growth, coupled with high consumption in developing countries, is putting tremendous pressures on the Earth's resources, environment, and social fabric. New evidence on Europe's population transition and from China, Indonesia, and Thailand in the 1970s suggests that well-designed family planning programs can speed fertility decline but rapid worldwide attainment of replacement level fertility will also require special development efforts and measures that go beyond family planning. Current projections of the world's ultimate peak population range from 8 billion in the mid 21st century to 11 billion in about 2125, depending on when replacement-level fertility is reached. China's drive for a drastic birth rate reduction and the oil crisis might change fertility behavior more rapidly than most demographers have heretofore thought likely.     

Toward a general theory of fertility: A causal modeling approach

A general theory of fertility is derived hypothesizing that the demand for children is primarily an outcome of social psychological processes within the family, subject to certain socioeconomic constraints. Two broad social psychological processes are posited as determinants of fertility. The first suggests that the attitudes or tastes of family members influence the demand for children. The second maintains that the nature of the husband-wife interaction (in terms of power, conflict, decision making, and marital satisfaction) determines family size. Socioeconomic variables, in the form of the normative social structure and social stratification, and economic constraints, such as income and price, are hypothesized to influence fertility through their impact on social psychological processes within the family. The overall theory is tested on two independent samples—one in Ankara, Turkey, the second in Mexico City, Mexico—using a structural equation methodology.