IE-OPIM Joint Graduate Seminar
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IE-OPIM Joint Graduate Seminar: Ulaş Özen (Özyeğin University)

Setting the Right Incentives for Global Planning and Operations

Date: Wednesday, April 15, 2015
Time: 13:40 – 14:30
Location: FENS G035

 

Abstract: We study incentive issues seen in a firm performing global planning and manufacturing, and local demand management. The stochastic demands in local markets are best observed by the regional business units, and the firm relies on the business units' forecasts for planning of global manufacturing operations. We propose a class of performance evaluation schemes that induce the business units to reveal their private demand information truthfully by turning the business units' demand revelation game into a potential game with truth telling being a potential maximizer, an appealing refinement of Nash equilibrium. Moreover, these cooperative performance evaluation schemes satisfy several essential fairness notions and do not require any announcement of scheme parameters based on prior beliefs. After analyzing the characteristics of several performance evaluation schemes in this class, we extend our analysis to include the impact of effort on demand.

 

Bio: Ulaş Özen is an associate professor of operations management in the Faculty of Business at Ozyegin University. He received his PhD in operations management/operations research from Eindhoven University of Technology. Before joining Ozyegin University, he worked as a researcher at Alcatel-Lucent Bell Labs in Ireland. At Bell Labs, he participated in various research and applied business projects in the area of services and supply chain operations management. His research interests include supply chain contracting and coordination, applied game theory, stochastic models and optimization, inventory theory, and services operations management.