Izak Duenyas

Optimal Learning Algorithms for Stochastic Inventory Systems with Random Capacities

Production and Operations Management · 2020 · 38 citations

We propose the first learning algorithm for single‐product, periodic‐review, backlogging inventory systems with random production capacity. Different than the existing literature on this class of problems, we assume that the firm has neither prior information about the demand distribution nor the capacity distribution, and only has access to past demand and supply realizations. The supply realizations are censored capacity realizations in periods where the policy need not produce full capacity t…

Running online experiments using web-conferencing software

Journal of the Economic Science Association · 2021 · 28 citations

Abstract We report the results of a novel protocol for running online experiments using a combination of an online experimental platform in parallel with web-conferencing software in two formats—with and without subject webcams—to improve subjects’ attention and engagement. We compare the results between our online sessions with the offline (lab) sessions of the same experiment. We find that both online formats lead to comparable subject characteristics and performance as the offline (lab) exper…

Multiproduct Dynamic Pricing with Limited Inventories Under a Cascade Click Model

Manufacturing & Service Operations Management · 2023-11-22 · 16 citations

Problem definition: Designing effective operational strategies requires a good understanding of customer behavior. The classic economic theory of customer choice has long been the paradigm in the operations literature. However, the rise of online marketplaces such as e-commerce has triggered considerable efforts in academia and industry to develop alternative models that not only provide a good approximation of customer behavior but also are easily scalable for large-scale implementations. In th…

Optimal Use and Replenishment of Two Substitutable Raw Materials in a Stochastic Capacitated Make-to-Order Production System

Manufacturing & Service Operations Management · 2022-02-24 · 9 citations

Problem definition: We study a multiperiod, nonstationary, make-to-order, joint production and inventory model where two kinds of input raw materials with availability uncertainties and different output conversion rates can be blended and then processed in a production line with stochastic capacity to produce the output product. Academic/practical relevance: The problem is motivated by the practice in coal-fired power plants, an important part of the energy sector, where two types of coal with d…

Procurement Mechanisms with Post-Auction Pre-Award Cost-Reduction Investigations

Operations Research · 2022-09-09 · 7 citations

Integrating Cost Reduction and Supplier Selection Activities Manufacturers who outsource production may find ways to reduce suppliers’ cost to lower the contract price. Conventionally, this is done after supplier selection. However, in practice, a sizable portion of the degree to which the manufacturer can help a supplier reduce cost could be learned before the supplier starts production. This opens up a possibility to better integrate supplier selection and cost-reduction activities. In “Procur…