Product Bundling: Impacts of Product Heterogeneity and Risk Considerations

Bundling has been extensively studied in the literature and its benefits have been manifested through three perspectives of achieving better price discrimination, helping to save costs, and preserving the power for deterring a potential entrant. In this study, we examine two aspects of bundling which have not been studied before. We examine the impact of product heterogeneity on bundling decisions. We also address risk considerations in a bundling problem. Specifically, we consider a retailer who has the option of selling a bundle of two products (pure bundling policy), or selling the products separately (no-bundling policy). The retailer could also face a product selection problem for which we consider three scenarios of choosing two products with perfectly positively correlated, perfectly negatively correlated or independent reservation prices. We use a Mean-Variance approach to include retailer’s risk through her profit variability when maximizing the expected value of profit. We characterize the conditions under which a policy or scenario performs better than the others under the influence of product heterogeneity and/or retailer’s risk aversion. Among other findings, we show that optimal bundling price chosen by a risk-averse decision maker cannot be larger than the one chosen by a risk neutral decision maker

An Integrated Outsourcing Framework: Analyzing Boeing’s Outsourcing Program for Dreamliner (B787)

This paper analyzes the outsourcing model which Boeing devised to develop its latest commercial airplane model: Dreamliner (B787). The development of this airplane which seemed to be very promising in the beginning turned into the longest delayed program in the history of the company. In this paper, we propose an integrated outsourcing framework through which we try to find the root causes of the delays and the resulted extra costs. The proposed framework shows how the interaction of all influential factors in four outsourcing dimensions (who, what, to whom, and how) determines the performance of an outsourcing program

Differential privacy preserved federated transfer learning for multi-institutional 68Ga-PET image artefact detection and disentanglement.

PURPOSE Image artefacts continue to pose challenges in clinical molecular imaging, resulting in misdiagnoses, additional radiation doses to patients and financial costs. Mismatch and halo artefacts occur frequently in gallium-68 (68Ga)-labelled compounds whole-body PET/CT imaging. Correcting for these artefacts is not straightforward and requires algorithmic developments, given that conventional techniques have failed to address them adequately. In the current study, we employed differential privacy-preserving federated transfer learning (FTL) to manage clinical data sharing and tackle privacy issues for building centre-specific models that detect and correct artefacts present in PET images. METHODS Altogether, 1413 patients with 68Ga prostate-specific membrane antigen (PSMA)/DOTA-TATE (TOC) PET/CT scans from 3 countries, including 8 different centres, were enrolled in this study. CT-based attenuation and scatter correction (CT-ASC) was used in all centres for quantitative PET reconstruction. Prior to model training, an experienced nuclear medicine physician reviewed all images to ensure the use of high-quality, artefact-free PET images (421 patients' images). A deep neural network (modified U2Net) was trained on 80% of the artefact-free PET images to utilize centre-based (CeBa), centralized (CeZe) and the proposed differential privacy FTL frameworks. Quantitative analysis was performed in 20% of the clean data (with no artefacts) in each centre. A panel of two nuclear medicine physicians conducted qualitative assessment of image quality, diagnostic confidence and image artefacts in 128 patients with artefacts (256 images for CT-ASC and FTL-ASC). RESULTS The three approaches investigated in this study for 68Ga-PET imaging (CeBa, CeZe and FTL) resulted in a mean absolute error (MAE) of 0.42 ± 0.21 (CI 95%: 0.38 to 0.47), 0.32 ± 0.23 (CI 95%: 0.27 to 0.37) and 0.28 ± 0.15 (CI 95%: 0.25 to 0.31), respectively. Statistical analysis using the Wilcoxon test revealed significant differences between the three approaches, with FTL outperforming CeBa and CeZe (p-value < 0.05) in the clean test set. The qualitative assessment demonstrated that FTL-ASC significantly improved image quality and diagnostic confidence and decreased image artefacts, compared to CT-ASC in 68Ga-PET imaging. In addition, mismatch and halo artefacts were successfully detected and disentangled in the chest, abdomen and pelvic regions in 68Ga-PET imaging. CONCLUSION The proposed approach benefits from using large datasets from multiple centres while preserving patient privacy. Qualitative assessment by nuclear medicine physicians showed that the proposed model correctly addressed two main challenging artefacts in 68Ga-PET imaging. This technique could be integrated in the clinic for 68Ga-PET imaging artefact detection and disentanglement using multicentric heterogeneous datasets

Towards personalized data-driven bundle design with QoS constraint

Singapore National Research Foundation under its International Research Centre @ Singapore Funding Initiativ

Risk Considerations in Product Bundling

While bundling literature focuses on risk neutral decision makers (retailers), in this study, we portray a new perspective by addressing risk considerations in a bundling problem. We consider a retailer who has the option of selling a bundle of two products. We use a Mean-Variance approach to include retailer’s risk through her profit variability when maximizing the expected value of profit. In this research, we also address the product selection problem, in which the retailer chooses the characteristics of the products to be bundled. We study the impact of the correlation between the reservation prices of the two products. We also consider the impact of the heterogeneity in the range of reservation prices of the two products. Among other findings, we show that optimal price made by a risk-averse decision maker cannot be larger than the one made by a risk neutral decision maker

Product Bundling: Impacts of Product Heterogeneity and Risk Considerations

Bundling has been extensively studied in the literature and its benefits have been manifested through three perspectives of achieving better price discrimination, helping to save costs, and preserving the power for deterring a potential entrant. In this study, we examine two aspects of bundling which have not been studied before. We examine the impact of product heterogeneity on bundling decisions. We also address risk considerations in a bundling problem. Specifically, we consider a retailer who has the option of selling a bundle of two products (pure bundling policy), or selling the products separately (no-bundling policy). The retailer could also face a product selection problem for which we consider three scenarios of choosing two products with perfectly positively correlated, perfectly negatively correlated or independent reservation prices. We use a Mean-Variance approach to include retailer’s risk through her profit variability when maximizing the expected value of profit. We characterize the conditions under which a policy or scenario performs better than the others under the influence of product heterogeneity and/or retailer’s risk aversion. Among other findings, we show that optimal bundling price chosen by a risk-averse decision maker cannot be larger than the one chosen by a risk neutral decision maker

An Integrated Outsourcing Framework: Analyzing Boeing’s Outsourcing Program for Dreamliner (B787)

This paper analyzes the outsourcing model which Boeing devised to develop its latest commercial airplane model: Dreamliner (B787). The development of this airplane which seemed to be very promising in the beginning turned into the longest delayed program in the history of the company. In this paper, we propose an integrated outsourcing framework through which we try to find the root causes of the delays and the resulted extra costs. The proposed framework shows how the interaction of all influential factors in four outsourcing dimensions (who, what, to whom, and how) determines the performance of an outsourcing program