Allocation Policies to Fulfil Heterogeneous Service Requirements under Resource Pooling

Abbasi, Babak; Fadaki, Masih; Hosseinifard, Zahra; Jahani, Hamed; Thomas, Douglas J.

doi:10.1111/deci.12493

Cited by 6 publications

(2 citation statements)

References 21 publications

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“…They used a static base-stock policy in their settings. Recently, Abbasi, Fadaki, Hosseinifard, Jahani, and Thomas (2020) extended this work by proposing effective resource allocation policies where heterogeneous service-level requirements, non-identical performance review periods, and various demand distributions are expected. Kloos and Pibernik (2020) investigated the allocation planning problem when the fill rate is used to measure the performance in an SLA with a linear penalty.…”

Section: Literature Reviewmentioning

confidence: 99%

Service‐Level Agreement with Dynamic Inventory Policy: The Effect of the Performance Review Period and the Incentive Structure

2021

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Performance measures are often outlined in the section of the service-level agreement (SLA) of the contract between a supplier and a retailer. They are monitored periodically, and penalty and/or bonus payments are imposed in each performance review period, according to the SLA clauses. Previous studies have mostly considered a static inventory policy in analyzing SLAs. However, in practice, the supplier may have an opportunity to adjust the stock level in each inventory review period, according to the observed performance. This study analyzes the dynamic stocking decision for a supplier facing an SLA where the supplier sells a single product to the retailer. The ready rate is used to measure the performance in an SLA. To this end, models for both lump-sum and linear penalty/bonus structures are developed, and the optimal stocking decisions for a strategic supplier are calculated using the stochastic dynamic programming approach. The results are then compared with the optimal static inventory policy, and new insights are derived to efficiently design an inventory system for the suppliers that are subject to service-level incentives. In addition, we investigate the impact of SLA parameterssuch as the length of the performance review period and incentive structures-on a supplier's performance, with the probability of meeting or exceeding the target service levels and the supplier's cost. We also consider the impact of demand distribution and inventory holding costs. Results show that under lump-sum incentives, a longer performance review period benefits both the supplier and the buyer, given that the average ready rate increases with less variability as the length of the performance review period increases, leading to decrements in the supplier's total costs. In this scenario, there is a higher chance of gaining bonuses/avoiding penalties for a strategic supplier who adopts a dynamic inventory policy. On the other hand, under linear incentives, the impact of the performance review period on the supplier's cost and the performance measure (i.e., ready rate) is complicated and depends on the magnitude of the holding cost and the bonus and/or penalty structure of the contract. Under this scheme, the performance of a static inventory policy is highly dependent on the holding cost because a high holding cost may lead to failure to meet the contract requirements in terms of the service level.

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Section: Literature Reviewmentioning

confidence: 99%

Service‐Level Agreement with Dynamic Inventory Policy: The Effect of the Performance Review Period and the Incentive Structure

2021

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“…Abbasi et al (2022) enhance the existing body of knowledge by examining how to allocate resources effectively to meet different service requirements within a shared resource pool. They emphasize the significance of efficient resource allocation in meeting diverse service needs.…”

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confidence: 99%

Strategic Behaviours In Municipal Decision-Making: A Strategic Approach

Alotaibi,

Abdelwahed

2023

J. of Law and Sust. Develop.

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Purpose: The present study explores an effective strategy implementation in the municipality of Saudi Arabia. The study also recognizes the mediating effect of planning success in the study. Design/Methodology/ Approach: The researchers conducted the study using quantitative methods, which applied the survey questionnaire to get responses from management-level employees working in the municipality Eastern Province Region of Saudi Arabia. Finally, the analysis utilized 274 samples to conclude it. Findings: Using SEM through AMOS, the study's outcomes significantly affect strategic behaviours, resource allocation, institutional policies and planning success in an effective strategy implementation. Moreover, the planning success factor mediates the association between strategic behaviour, resource allocation and effective strategy implementation. On the other hand, planning success negatively mediates the association between institutional policies and effective strategy implementation. Research, practical and social implications: The study findings would support cultivating a culture of flexibility and prioritizing collaborative approaches for effective strategy implementation. The results also help efficiently allocate critical resources, prioritize strategic investments, and maintain flexibility in resource reallocation to align with evolving strategic goals. Finally, it guides the development of policies with practical strategies, encourages calculated risk-taking, and establishes robust monitoring mechanisms with transparent communication to ensure successful strategy implementation. Originality/ value: This study fills the gaps in the empirical assessment among Saudi municipalities.

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Quantum game approach for capacity allocation decisions under strategic reasoning

2022

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From a common point of view, quantum mechanics, psychology, and decision science disciplines try to predict how unruly systems (atomic particles, human behaviors, and decision makers’ choices) might behave in the future. Effective predicting outcome of a capacity allocation game under various allocation policies requires a profound understanding as how strategic reasoning of decision makers contributes to the financial gain of players. A quantum game framework is employed in the current study to investigate how performance of allocation policies is affected when buyers strategize over order quantities. The results show that the degree of being manipulative for allocation mechanisms is not identical and adopting adaptive quantum method is the most effective approach to secure the highest fill rate and profit when it is practiced under a reasonable range of entanglement levels.

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Allocation Policies to Fulfil Heterogeneous Service Requirements under Resource Pooling

Cited by 6 publications

References 21 publications

Service‐Level Agreement with Dynamic Inventory Policy: The Effect of the Performance Review Period and the Incentive Structure

Service‐Level Agreement with Dynamic Inventory Policy: The Effect of the Performance Review Period and the Incentive Structure

Strategic Behaviours In Municipal Decision-Making: A Strategic Approach

Quantum game approach for capacity allocation decisions under strategic reasoning

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