Competing on Time: An Integrated Framework to Optimize Dynamic Time-to-Market and Production Decisions
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Date: 03-27-2007
Start Time:
1:00pm
End Time: 2:00pm
Speaker: Özalp Özer, Stanford University
Location: Uris 329
ABSTRACT
In this presentation, we will outline the challenges and
uncertainties associated with bringing a new product to market. To do
so, we will focus on a major global high-technology company located in
the Bay Area and discuss their challenges related to new product
introductions. The high technology industry is characterized by
lightning speed in technology innovation and intense competition. We
will present our OR based modeling framework that is used to help this
global high-technology company make effective time-to-market decisions.
Our model solves the problem in two nested phases: a design phase and a
mass production phase. The design phase is modeled as an optimal
stopping problem where decision to "enter or not" is made. The solution
of the design stage affects the mass production phase. This second
phase is modeled as a stochastic production control problem where
production decisions are made. We will characterize an optimal policy
for market timing, an optimal policy for production decisions and how
and why they are amenable for implementation. We will also discuss the
techniques used to solve this large-scale stochastic dynamic program,
including how structural results enabled us to improve computational
efficiency. If time permits, we will discuss how this project and the
resulting software enabled various functional areas, such as Finance,
Manufacturing, Marketing and R&D within the firm to communicate and
jointly address this strategic question.
Joint work with Onur Uncu.
BIO
Özalp Özer is an Assistant Professor in the Department of Management
Science & Engineering at Stanford University. He is also an
affiliated faculty member of the Stanford Global Supply Chain
Management Forum. His general research interests are design and control
of production and distribution systems, management and coordination of
supply chains, pricing and revenue management. Professor Ozer has
received the Wickham Skinner Early-Career Research Accomplishment Award
from the Production and Operations Management Society in 2004, and the
Eugene Grant Teaching Award in Stanford's School of Engineering by vote
of students in 2003. He received his Ph.D. and M.S. degrees from
Columbia University.
Please check out his website here.