Essays in Empirical Operations Management: Bayesian Learning of Service Quality and Structural Estimation of Complementary Product Pricing and Inventory Management

This dissertation contributes to the rapidly growing empirical research area in the field of operations management. It contains two essays, tackling two different sets of operations management questions which are motivated by and built on field data sets from two very different industries --- air cargo logistics and retailing.

The first essay, based on the data set obtained from a world leading third-party logistics company, develops a novel and general Bayesian hierarchical learning framework for estimating customers' spillover learning, that is, customers' learning about the quality of a service (or product) from their previous experiences with similar yet not identical services. We then apply our model to the data set to study how customers' experiences from shipping on a particular route affect their future decisions about shipping not only on that route, but also on other routes serviced by the same logistics company. We find that customers indeed borrow experiences from similar but different services to update their quality beliefs that determine future purchase decisions. Also, service quality beliefs have a significant impact on their future purchasing decisions. Moreover, customers are risk averse; they are averse to not only experience variability but also belief uncertainty (i.e., customer's uncertainty about their beliefs). Finally, belief uncertainty affects customers' utilities more compared to experience variability.

The second essay is based on a data set obtained from a large Chinese supermarket chain, which contains sales as well as both wholesale and retail prices of un-packaged perishable vegetables. Recognizing the special characteristics of this particularly product category, we develop a structural estimation model in a discrete-continuous choice model framework. Building on this framework, we then study an optimization model for joint pricing and inventory management strategies of multiple products, which aims at improving the company's profit from direct sales and at the same time reducing food waste and thus improving social welfare.

Collectively, the studies in this dissertation provide useful modeling ideas, decision tools, insights, and guidance for firms to utilize vast sales and operations data to devise more effective business strategies.

English product names and descriptions in two Swedish supermarkets : A quantitative and qualitative analysis

This study aimed to investigate what proportion of two household staples, soap and crispbread products, in two Swedish supermarkets had English product names or descriptions, and attempted a qualitative analysis of the English language used. Out of the Swedish brands, 54-62% of the soap products had names and/or product descriptions containing English, compared to 13-15% of the crispbread; these differences were in line with previous research, suggesting English is used more to market certain product groups than other ones. Earlier studies have also proposed that English could be considered an ‘elite’ language in Sweden, and it might thus be more commonly found on more exclusive/expensive products, or in the supermarket primarily aiming at higher-income customers. However, the differences between the two supermarkets, and between the more and less expensive products, were not great enough for any firm conclusions. When products had a mixture of languages on the label, English was most often used for product names or part of names, not so often for product descriptions. Further studies with a larger amount of data would be required for more reliable conclusions, especially for the qualitative analyses. It would also be interesting to investigate customers’ attitudes towards the use of English on product labels.

Product quality and compliance in the pharmaceutical industry

This thesis aims to highlight the importance of a Product Quality & Compliance department in a Pharmaceutical Industry, on the good performance of company's activities and the achievement of their goals and mission. Despite the wide activities performed by this Department, the purpose of this work will be completed by describing only some of their reponsibilities. The tasks described are specifically the ones I have been performing throughout my professional experience at Bluepharma - Pharmaceutical Industry, SA, initiated in June 2012 in the Quality Assurance Department until today in the currently named Product Quality & Compliance department. This thesis is structured into 4 parts. The first chapter is an introduction to this thesis, and includes its context and objectives, followed by a brief overview of the state-of-the art in the pharmaceutical industry, including the market environment, the regulatory environment and quality requirements. A small presentation of the company and the department where were and still are developed my professional activity is also made in this chapter. In the following chapter are described the main tasks performed, the complementary activities and key skills acquired throughout this professional experience. A discussion and conclusion is presented at the end, including an analysis of the reported activities, main difficulties encountered its role and importance in the company performance as well as the skills acquired during this work experience.

The impact of event sponsorship on children’s brand image and purchase intentions: The mediator effects of product involvement and brand familiarity

Field lab in marketing: Children consumer behaviour

Analysis of cyclic variations during mode switching between spark ignition and controlled auto-ignition combustion operations

© IMechE 2014. Controlled auto-ignition, also known as homogeneous charge compression ignition, has been the subject of extensive research because of their ability to provide simultaneous reductions in fuel consumption and NOx emissions from a gasoline engine. However, due to its limited operation range, switching between controlled auto-ignition and spark ignition combustion is needed to cover the complete operating range of a gasoline engine for passenger car applications. Previous research has shown that the spark ignition -controlled auto-ignition hybrid combustion (SCHC) has the potential to control the ignition timing and heat release process during the mode transition operations. However, it was found that the SCHC is often characterized with large cycle-to-cycle variations. The cyclic variations in the in-cylinder pressure are particularly noticeable in terms of both their peak values and timings while the coefficient of variation in the indicated mean effective pressure is much less. In this work, the cyclic variations in SCHC operations were analyzed by means of in-cylinder pressure and heat release analysis in a single-cylinder gasoline engine equipped with Variable Valve Actuation (VVA) systems. First, characteristics of the in-cylinder pressure traces during the spark ignition-controlled auto-ignition hybrid combustion operation are presented and their heat release processes analyzed. In order to clarify the contribution to heat release and cyclic variation in SCHC, a new method is introduced to identify the occurrence of auto-ignition combustion and its subsequent heat release process. Based on the new method developed, the characteristics of cyclic variations in the maximum rate of pressure rise and different stages of heat release process have been analyzed and discussed.

Exploring the effectiveness of virtual product placement on recall and recognition of new brands

This paper investigates the effectiveness of virtual product placement as a marketing tool by examining the relationship between brand recall and recognition and virtual product placement. It also aims to address a gap in the existing academic literature by focusing on the impact of product placement on recall and recognition of new brands. The growing importance of product placement is discussed and a review of previous research on product placement and virtual product placement is provided. The research methodology used to study the recall and recognition effects of virtual product placement are described and key findings presented. Finally, implications are discussed and recommendations for future research provided.

Complexity and learning behaviors in product innovation

Successful product innovation and the ability of companies to continuously improve their innovation processes are rapidly becoming essential requirements for competitive advantage and long-term growth in both manufacturing and service industries. It is now recognized that companies must develop innovation capabilities across all stages of the product development, manufacture, and distribution cycle. These Continuous Product Innovation (CPI) capabilities are closely associated with a company’s knowledge management systems and processes. Companies must develop mechanisms to continuously improve these capabilities over time. Using results of an international survey on CPI practices, sets of companies are identified by similarities in specific contingencies related to their complexity of product, process, technological, and customer interface. Differences between the learning behaviors found present in the company groups and in the levers used to develop and support these behaviors are identified and discussed. This paper also discusses appropriate mechanisms for firms with similar complexities, and some approaches they can use to improve their organizational learning and product innovation.

Positive relationships among collaboration for innovation, past innovation abandonment and future product introduction in manufacturing SMEs

The importance of collaboration for firm level innovation has been well established but much of the research focuses on large firms, with little research on small and medium enterprises. This paper investigates the links between product innovation and external collaboration and between future product innovation and past abandonment in small and medium sized firms, analysing data from 449 manufacturing firms, collected through the Australian Business Longitudinal Database. Our findings indicate firms that sought ideas or solutions from external network such as suppliers, or business partners reported higher level of new product introduction than firms that did not have any external collaboration. Further, firms with past abandonment experiences reported higher levels of new product introduction than firms that did not have such experience. Additionally, the findings indicated that firms with external collaboration were more likely to introduce new products even if they had previously experienced abandonment of a product innovation than firms without external collaboration. Implications, limitations and future research are outlined.

Comparative study of DFSS in product and service innovation

Six sigma has proven itself as a major quality initiative in the last two decades. It is a philosophy which provides a systematic approach to applying numerous tools in the framework of several quality improvement methodologies. The most widely used six sigma methodology is DMAIC, which is best suited for improving existing processes. In order to build quality into the product or service, a proactive approach like Design for Six Sigma (DFSS) is required. This paper provides an overview of DFSS, product innovation, and service innovation. The emphasis is on comparing how DFSS is applied differently in product and service innovation. This paper contributes by analysing the existing literature on DFSS in product and service innovation. The major findings are that the DFSS approach in services and products can be differentiated along the following three dimensions: methodology, characteristics, and technology.

How does the size and shape of local populations in China compare to general anthropometric surveys currently used for product design?

Anthropometry has long been used for a range of ergonomic applications & product design. Although products are often designed for specific cohorts, anthropometric data are typically sourced from large scale surveys representative of the general population. Additionally, few data are available for emerging markets like China and India. This study measured 80 Chinese males that were representative of a specific cohort targeted for the design of a new product. Thirteen anthropometric measurements were recorded and compared to two large databases that represented a general population, a Chinese database and a Western database. Substantial differences were identified between the Chinese males measured in this study and both databases. The subjects were substantially taller, heavier and broader than subjects in the older Chinese database. However, they were still substantially smaller, lighter and thinner than Western males. Data from current Western anthropometric surveys are unlikely to accurately represent the target population for product designers and manufacturers in emerging markets like China.

Protective effects of sweroside on human MG-63 cells and rat osteoblasts

Herbal Fructus Corni is a folk medicine with a long history of safe use for treating osteoporosis in postmenopausal women or elderly men in Asia. Sweroside is a bioactive herbal ingredient isolated from Fructus Corni, which has been widely used for the treatment of osteoporosis in traditional Chinese medicine (TCM). Unfortunately, the working mechanisms of this compound are difficult to determine and thus remain unclear. The aim of the study was performed to determine the potential molecular mechanism of the anti-osteoporotic effect of sweroside on the human MG-63 cells and rat osteoblasts. 3-(4,5-dimethylthiazol-2-yl)-2,5-diphenyltetrazolium bromide (MTT) test was used to observe the effect of sweroside on cell proliferation. The activity of alkaline phosphatase (ALP) and the amount of osteocalcin were also assayed the cell differentiation. Sweroside significantly increased the proliferation of human MG-63 cells and rat osteoblasts (P<0.01). It increased the activity of ALP, and osteocalcin was also elevated in response to sweroside (P<0.05). Of note, flowcytometer assay showed that sweroside can attenuate and inhibit apoptosis. Sweroside has a direct osteogenic effect on the proliferation and differentiation of cultured human MG-63 cells and rat osteoblasts in vitro. These data will help in understanding the molecular mechanisms of therapeutic efficacy of sweroside, and highlight insights into drug discovery. In the current study, sweroside has been suggested to be a promising osteoporosis therapeutic natural product.

Cinnamate toxicity expression on phenylalanine ammonia-lyase activity, germination and growth of cucumber (Cucumis sativis) seedlings

Cinnamate is the product of phenylalanine ammonialyase (PAL). This compound, a precursor of phenolics in plants, has been shown to be phytotoxic. Cinnamate inhibits PAL activity in cucumber seedlings. DL-phenylalanine has the same effect on the enzyme but does not affect growth. Actinomycin D and cycloheximide are phytotoxic and inhibit PAL. Production of a double-peg has been noticed in the seedlings, grown in the presence of actinomycin D. Light stimulates PAL activity in the seedling.

Thermal decomposition and ignition of coal

A study of the thermal decomposition and ignition of coal as functions of pelletizing pressure and dwell time has revealed that: (1) ignition and thermal behaviour are related to the apparent density of the pelletized coal; (2) for a given apparent density of pelletized coal, the ignition temperature is related to the rate constants of thermal decomposition. Isothermal decomposition in air at 550 °C has been shown to fit the Avrami-Erofeev equation for three-dimensional growth of nuclei.

Extended liaison as an interface between product and process model in assembly

This paper describes the use of liaison to better integrate product model and assembly process model so as to enable sharing of design and assembly process information in a common integrated form and reason about them. Liaison can be viewed as a set, usually a pair, of features in proximity with which process information can be associated. A liaison is defined as a set of geometric entities on the parts being assembled and relations between these geometric entities. Liaisons have been defined for riveting, welding, bolt fastening, screw fastening, adhesive bonding (gluing) and blind fastening processes. The liaison captures process specific information through attributes associated with it. The attributes are associated with process details at varying levels of abstraction. A data structure for liaison has been developed to cluster the attributes of the liaison based on the level of abstraction. As information about the liaisons is not explicitly available in either the part model or the assembly model, algorithms have been developed for extracting liaisons from the assembly model. The use of liaison is proposed to enable both the construction of process model as the product model is fleshed out, as well as maintaining integrity of both product and process models as the inevitable changes happen to both design and the manufacturing environment during the product lifecycle. Results from aerospace and automotive domains have been provided to illustrate and validate the use of liaisons. (C) 2014 Elsevier Ltd. All rights reserved.

Understanding Medical Device Patenting and Clinical Trials for Product Leadership

Unmet clinical needs remain the primary driving force for innovations in medical devices. While appropriate mechanisms to protect these innovative outcomes are essential, the performance of clinical trials to ensure safety is also mandated before the invention is ready for public use. Literature explaining the relationship between patenting activities and clinical trials of medical devices is scarce. Linking patent ownership to clinical trials may imply product leadership and value chain control. In this paper, we use patent data from Indian Patent Office (IPO), PCT, and data from Clinical Trials Registry of India (CTRI) to identify whether patent assignees have any role in leading as primary sponsors of clinical trials. A total of 42 primary sponsors are identified from the CTRI database in India. Number of patents awarded to these primary sponsors in the particular medical device, total number of patents awarded to the primary sponsor in all technologies, total number of patents in the specific medical device technology provides an indication of leadership and control in the value chain.