Category Archives: Business Analytics

A new approach for modeling and solving set packing problems

Alidaee, Bahram, Kochenberger, Gary, Lewis, Karen, Lewis, Mark, and Wang, Haibo
European Journal of Operational Research Vol. 186, Issue 2, p. 504-512

In recent years the unconstrained quadratic binary program has emerged as a unified modeling and solution framework for a variety of combinatorial optimization problems. Experience reported in the literature with several problem classes has demonstrated that this unified approach works surprisingly well in terms of solution quality and computational times, often rivaling and sometimes surpassing special purpose methods. In this paper we report on the application of this unified framework to set packing problems with a variety of coefficient distributions. Computational experience is reported illustrating the attractiveness of the approach. In particular, our results highlight both the effectiveness and robustness of our approach across a wide array of test problems.

Modeling and Solving Set Packing Problems via Unconstrained Quadratic Binary Programming

Alidaee, B., Kochenberger, G., Lewis, K., Lewis, M. and Wang, H.
European Journal of Operational Research Vol. 186, Issue 2, p. 504-512

In recent years the unconstrained quadratic binary program has emerged as a unified modeling and solution framework for a variety of combinatorial optimization problems. Experience reported in the literature with several problem classes has demonstrated that this unified approach works surprisingly well in terms of solution quality and computational times, often rivaling and sometimes surpassing special purpose methods. In this paper we report on the application of this unified framework to set packing problems with a variety of coefficient distributions. Computational experience is reported illustrating the attractiveness of the approach. In particular, our results highlight both the effectiveness and robustness of our approach across a wide array of test problems.

A new modeling and solution approach for the set-partitioning problem

Lewis, Mark, Kochenberger, Gary, and Alidaee, Bahram
Computers & Operations Research Vol. 35, Issue 3, p. 807-813

The set-partitioning problem (SPP) is widely known for both its application potential and its computational challenge. This NP-hard problem is known to pose considerable difficulty for classical solution methods such as those based on LP technologies. In recent years, the unconstrained binary quadratic program has proven to perform well as a unified modeling and solution framework for a variety of IP problems. In this paper we illustrate how this unified framework can be applied to SPP. Computational experience is presented, illustrating the attractiveness of the approach.

Solving the maximum edge weight clique problem via unconstrained quadratic programming

Alidaee, Bahram, Glover, Fred, Kochenberger, Gary and Wang, Haibo
European Journal of Operational Research Vol. 181, Issue 2, p. 592-597

The unconstrained quadratic binary program (UQP) is proving to be a successful modeling and solution framework for a variety of combinatorial optimization problems. Experience reported in the literature with several problem classes has demonstrated that this approach works surprisingly well in terms of solution quality and computational times, often rivaling and sometimes surpassing more traditional methods. In this paper we report on the application of UQP to the maximum edge-weighted clique problem. Computational experience is reported illustrating the attractiveness of the approach.

Nurse Scheduling: From Academia to Implementation or Not?

Kellogg, Deborah L. and Walczak, Steven
Interfaces Vol. 37, Issue 4, p. 355-369

The scheduling of nursing staff is a long-standing problem with myriads of research models published by academia. The exploratory research that we discuss examines the models that academia has produced and the models that hospitals have actually used. We use data from many sources, including research articles, e-mail and telephone surveys, an industry database, and a software source catalog. Only 30 percent of systems that research articles discuss are implemented, and there is very little academic involvement in systems that third-party vendors offer. We examine causes for the research-application gap and discuss directions for future academic research to make it more applicable.

Understanding the impact of test validity and bias on selection errors and adverse impact in human resource selection

Aguinis, Herman and Smith, Marlene A.
Personnel Psychology Vol. 60 Issue 1, p. 165-199

We propose an integrative framework for understanding the relationship among 4 closely related issues in human resource (HR) selection: test validity, test bias, selection errors, and adverse impact. One byproduct of our integrative approach is the concept of a previously undocumented source of selection errors we call bias-based selection errors (i.e., errors that arise from using a biased test as if it were unbiased). Our integrative framework provides researchers and practitioners with a unique tool that generates numerical answers to questions such as the following: What are the anticipated consequences for bias-based selection errors of various degrees of test validity and test bias? What are the anticipated consequences for adverse impact of various degrees of test validity and test bias? From a theory point of view, our framework provides a more complete picture of the selection process by integrating 4 key concepts that have not been examined simultaneously thus far. From a practical point of view, our framework provides test developers, employers, and policy makers a broader perspective and new insights regarding practical consequences associated with various selection systems that vary on their degree of validity and bias. We present a computer program available online to perform all needed calculations.

NEW OPTIMIZATION MODELS FOR DATA MINING

GLOVER, FRED W. and KOCHENBERGER, GARY
International Journal of Information Technology & Decision Making Vol. 5 Issue 4, p. 605-609

In recent years modern methods of optimization have contributed greatly to the advances in data mining and related areas. These contributions continue today and promise to further advance the state of the art both in terms of modeling innovations and new solution methodologies. In this paper, we present a new modeling and solution methodology for unsupervised clustering. Preliminary computational experience is given to illustrate the approach. This methodology is part of our current research and offers considerable opportunity for additional investigation to be conducted by other researchers.

Perceived risk and e-banking services: An analysis from the perspective of the consumer

Cunningham, Lawrence F.; Gerlach, James; and Harper, Michael D.
Journal of Financial Services Marketing Vol. 10 Issue 2, pp. 165-178.

Abstract This research investigates the premise that purchasing e-banking services is perceived to be riskier than purchasing traditional banking services. Unlike previous studies on perceived risk that typically focused on the relationship of perceived risk and information search, this exploratory study examines the dynamics of perceived risk throughout the various stages of the consumer buying process. A survey of 159 respondents reveals a risk premium for e-banking services that follows a systematic pattern throughout the consumer buying process. When viewed as a dynamic process, perceived risk for e-banking services shows more radical changes in risk levels than traditional banking services. The analyses indicate that financial risk drives the risk premium while psychological, physical and time risk play ancillary roles as risk drivers at certain stages of the consumer buying process. A major implication of this study is that there is a risk premium for e-banking services and the risk premium permeates all stages of the consumer buying process. Risk mitigation strategies are addressed.

An Unconstrained Quadratic Binary Programming Approach to the Vertex Coloring Problem

Kochenberger, Gary A., Glover, Fred, Alidaee, Bahram and Rego, Cesar
Annals of Operations Research Vol. 139, Issue 1, pp. 229 – 241.

The vertex coloring problem has been the subject of extensive research for many years. Driven by application potential as well as computational challenge, a variety of methods have been proposed for this difficult class of problems. Recent successes in the use of the unconstrained quadratic programming (UQP) model as a unified framework for modeling and solving combinatorial optimization problems have motivated a new approach to the vertex coloring problem. In this paper we present a UQP approach to this problem and illustrate its attractiveness with preliminary computational experience.

Perceived Risk and the Consumer Buying Process: Internet Airline Reservations

Cunningham, Lawrence F., James H. Gerlach, Michael D. Harper, and Clifford E. Young
International Journal of Service Industry Management Vol. 16 Issue 4, pp. 357-372.

Purpose: This research investigates the premise that the use of Internet airline reservation systems is perceived to be riskier than traditional airline reservation shopping.

Methodology: A survey or 263 respondents investigated perceived risk at various stages of the consumer buying process.

Findings: The results reveal that perceived risk for airline reservation services follows a pattern throughout the consumer buying process. When viewed as a dynamic process, perceived risk for Internet airline services shows more radical changes in risk levels than the traditional service. The analyses indicate that performance, physical, social, and financial risk are related to perceived risk at certain stages of the consumer buying process.

Practical Implications: A major finding of this study is that there is a risk premium for Internet airline reservation services and the risk premium permeates all stages of the consumer buying process. It is further demonstrated that the Internet risk premium does affect usage levels; implying that the Internet risk premium is consequential and warrants the implementation of risk mitigation strategies.

Originality: Unlike previous studies on perceived risk that typically focused on the relationship of perceived risk and information search, this study examines the dynamics of perceived risk throughout the various stages of the consumer buying process.

Using xQx to model and solve the uncapacitated task allocation problem

Lewis, Mark, Alidaee, Bahram and Kochenberger, Gary
Operations Research Letters Vol. 33, Issue 2, p. 176-182

This paper illustrates how large instances of the unconstrained task allocation problem can be effectively modeled and efficiently solved as unconstrained quadratic binary programs. Computational experience and a comparison to the state-of-the-art commercial code (CPLEX) illustrate the attractiveness of our approach.

A new modeling and solution approach for the number partitioning problem

Alidaee, Bahram, Glover, Fred, Kochenberger, Gary A. and Rego, Ceasar
Journal Of Applied Mathematics And Decision Sciences Vol. 9, Issue 2, p. 135-145

The number partitioning problem has proven to be a challenging problem for both exact and heuristic solution methods. In this paper we present a new modeling and solution approach that consists of re-casting the problem as an unconstrained quadratic binary program that can be solved by effcient metaheuristic methods. Our approach readily accommodates both the common two-subset partition case as well as the more general case of multiple subsets. Preliminary computational experience is presented illustrating the attractiveness of the method.

Assessing Perceived Risk Of Consumers In Internet Airline Reservations Services

Cunningham, Lawrence F., Gerlach, James and Harper, Michael D.
Journal of Air Transportation Vol. 9 Issue 1, p. 21-35

This research investigates the premise that the use of Internet airline reservation systems is perceived to be riskier than traditional airline reservation systems. Unlike previous studies on perceived risk that typically focused on the relationship of perceived risk and information search, this study examines the dynamics of perceived risk throughout the various stages of the consumer buying process. A survey of 159 respondents reveals that perceived risk for both traditional and Internet airline reservation services follows a systematic pattern throughout the consumer buying process. Perceived risk for both traditional and Internet airline reservation systems falls during information search but recovers and rapidly increases as consumers approach the moment of purchase. When viewed as a dynamic process, perceived risk for Internet airline reservation services shows more radical changes in risk levels than the traditional service. Another major finding of this study is the discovery of a risk premium for Internet airline reservation services that permeates all stages of the consumer buying process.