Article
Management
Yuan-Mao Kao, N. Bora Keskin, Kevin Shang
Summary: This paper examines the situation where a company faces potential business disruption risk and purchases business interruption insurance to guard against it. The study finds that due to limited production capacity and self-initiated recovery efforts, companies with lower demand forecasts benefit more from business interruption insurance. Optimal insurance contracts are derived to address the issues of adverse selection and moral hazard caused by information asymmetry. The impact of the firm's characteristics on the optimal contracts is analyzed, highlighting the different effects of operational and informational characteristics. The relationship between capacity and business interruption insurance is also explored.
MANAGEMENT SCIENCE
(2022)
Article
Multidisciplinary Sciences
Elena Nebolsina
Summary: The study used panel vector autoregression models to analyze dynamic panel data of 50 states and the District of Columbia, finding that the demand for insurance services in the United States has changed due to the Covid-19 pandemic and is expected to increase significantly. Recommendations were made for insurance market participants to promote the adoption of public-private protection schemes to better respond to potential pandemic-related losses in the future.
Article
Computer Science, Information Systems
Hiren Dutta, Saurabh Nagesh, Jawahar Talluri, Parama Bhaumik
Summary: Traditional insurance pays based on actual loss, while parametric insurance pays a predetermined sum based on the severity of an event. Parametric insurance can cover transportation delays and automatically process claims. This article discusses creating parametric transport insurance using blockchain and the potential applications in other fields.
IEEE TRANSACTIONS ON SERVICES COMPUTING
(2023)
Article
Computer Science, Interdisciplinary Applications
Guo Li, Xiaochuan Li, Mengqi Liu
Summary: With the ongoing COVID-19 outbreak, global supply chains are facing an increasing risk of supply disruption. Backup production is considered as a potential solution to enhance supply chain resilience, but inducing suppliers to adopt backup production remains a challenge. This study examines a supply chain in a crisis-like new normal situation, where a manufacturer strategically uses private demand information to influence the supplier's decision on backup production. The findings reveal that when demand information is shared, the supplier's decision on backup production follows a cutoff structure. Information sharing has a significant impact on backup decision, promoting it under high demand potential while impeding it under low demand potential. Interestingly, the manufacturer may choose to share demand information with the supplier under certain conditions, resulting in the adoption of backup production and displaying nonmonotonic relations to backup cost.
COMPUTERS & INDUSTRIAL ENGINEERING
(2023)
Article
Business, Finance
Alexis Louaas, Pierre Picard
Summary: We analyze the implementation of pandemic business interruption coverage using capitalization mechanisms and portfolio management strategy. Different economic sectors are affected by pandemics in varying ways, and this allows for risk-coverage mechanisms based on financial securities. Our study shows that insurers can provide business interruption coverage during pandemics while hedging risks during non-pandemic states. This challenges the perception that only governments can address the issue of pandemic insurability and is supported by numerical simulations using French stock exchange data.
GENEVA RISK AND INSURANCE REVIEW
(2023)
Article
Management
Michael Redmond, Ann Melissa Campbell, Jan Fabian Ehmke
Summary: This paper presents an a priori itinerary planning method that maximizes reliability by considering travel time uncertainty and backup plans. It introduces a network search algorithm that accurately accounts for travel time uncertainty and alternative options. The method is compared to a state-of-the-art contingency research approach and shown to calculate reliability more accurately, be more intuitive to travelers, and have a faster runtime. The study also highlights differences in reliability across different times, budgets, and regions in a real-world transit network in Gottingen, Germany.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2022)
Article
Engineering, Multidisciplinary
Lu-Xing Yang, Kaifan Huang, Xiaofan Yang, Yushu Zhang, Yong Xiang, Yuan Yan Tang
Summary: The paper introduces a novel APT defense mechanism based on DBAR techniques, aiming to address the shortcomings of the conventional DAR-based APT defense mechanism and demonstrate efficiency in practical implementation.
IEEE TRANSACTIONS ON NETWORK SCIENCE AND ENGINEERING
(2021)
Article
Business
Arijit De, Junwei Wang, Manoj Kumar Tiwari
Summary: This paper explores sustainable container shipping with a focus on fuel bunker management and recovery policies for disruptions in maritime transportation. It proposes a novel mathematical model and heuristic procedure to maximize profitability of shipping companies and addresses decision-making processes within shipping operations. Additionally, the paper considers recovery strategies such as port swapping and vessel route rescheduling to mitigate disruptions caused by adverse weather conditions. Insights gained from analysis based on fuel price, bunkering capacity, weather conditions, port closures, carbon taxes, and fuel consumption offer valuable information for shipping company managers.
IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT
(2021)
Article
Computer Science, Information Systems
Daniel Andrade, Joao Silva, Miguel Correia
Summary: Intel SGX improves application security by shielding code and data in enclaves, but also makes data recovery impossible if the original computer is damaged or lost. To address this issue, SRX is proposed as a solution for sharing sealed data among a restricted set of SGX-enabled computers executing the same enclave code.
Article
Engineering, Industrial
Zhongyi Liu, Mengyu Li, Ying Lei, Xin Zhai
Summary: This study examines the mitigation strategy for a risk-averse company facing the threat of supply chain disruption. The company adjusts its ordering decision and purchases business interruption insurance to reduce the damage caused by disruption. The study finds that insurance effectively reduces the losses and eliminates the impact of the company's risk-averse attitude.
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
(2022)
Article
Economics
Hao Chen, Haobo Yan, Kai Gong, Haopeng Geng, Xiao-Chen Yuan
Summary: This study develops a Dynamic Inoperability Input-output Model to assess the business interruption costs (BICs) from a provincial extremely big electricity outage event. It is found that the total BIC of an outage event is about 1.44 billion yuan, and the first 24 hours of the recovery period account for about 70% of the total BICs. The study also explores the impact of sectoral interdependencies on the estimated BICs.
Article
Computer Science, Information Systems
Woochang Jeong, Haesung Park, Chanik Park
Summary: On a blockchain platform, it is critical to back up and recover a user's private key in order to prevent loss of cryptocurrencies. This paper proposes KeyScrub, a key scrubbing method using t-out-of-n secret sharing technique to ensure the availability of at least t partial keys at any time. The reliability analysis shows the tradeoff relationship between the scrubbing interval and the values of t and n.
Article
Business, Finance
Andre Schmitt, Sandrine Spaeter
Summary: The aim of this paper is to demonstrate the effectiveness of cat bonds as a pandemic business interruption protection in a comprehensive public-private coverage scheme. It proposes a numerical model to show how cat bonds can complement standard re/insurance by improving coverage even in a pandemic. The paper also introduces double trigger pandemic business interruption cat bonds and discusses their characteristics. It simulates the life of theoretical PBI bonds in the restaurant industry in France using COVID-19 data.
GENEVA PAPERS ON RISK AND INSURANCE-ISSUES AND PRACTICE
(2023)
Article
Environmental Studies
Dan Wei, Adam Rose, Eyuphan Koc, Zhenhua Chen, Lucio Soibelman
Summary: An integrated transportation-socioeconomic model is developed to analyze the economic consequences and resilience to seaport and associated transportation network disruptions. A simulated earthquake scenario affecting the Ports of Los Angeles and Long Beach shows significant total GDP losses, while a combination of resilience tactics can reduce GDP impacts effectively. Distributional analysis indicates that lower-to-middle-income groups are more impacted by port disruptions, while middle-to-higher-income groups are more impacted by building damages.
TRANSPORTATION RESEARCH PART D-TRANSPORT AND ENVIRONMENT
(2022)
Article
Economics
Gina Tonn, Allison Reilly, Jeffrey Czajkowski, Hamed Ghaedi, Howard Kunreuther
Summary: This article discusses the high dependence of the U.S. economy and way of life on transportation systems, as well as the significant social and economic impacts that can result from disruptions to transportation networks due to various hazards and infrastructure issues. Through qualitative and quantitative analyses and in-depth review of literature, barriers to and opportunities for reducing transportation-related disaster losses and improving infrastructure risk management are identified, with recommendations for policy measures to enhance transportation infrastructure resilience.
Article
Automation & Control Systems
Xiang Li, Dan Shi, Yongjian Li, Xueping Zhen
IEEE TRANSACTIONS ON SYSTEMS MAN CYBERNETICS-SYSTEMS
(2019)
Article
Management
Shiming Deng, Chaocheng Gu, Gangshu (George) Cai, Yanhai Li
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
(2018)
Article
Management
Xiangfeng Chen, Gangshu (George) Cai, Jing-Sheng Song
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
(2019)
Article
Management
Xueping Zhen, Gangshu (George) Cai, Reo Song, Sungha Jang
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2019)
Article
Engineering, Industrial
Jianjun Xu, Shaoxiang Chen, Gangshu (George) Cai
Article
Engineering, Manufacturing
Xiaodong Yang, Gangshu (George) Cai, Charles A. Ingene, Jihong Zhang
PRODUCTION AND OPERATIONS MANAGEMENT
(2020)
Article
Economics
Xueping Zhen, Dan Shi, Yongjian Li, Chu Zhang
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
(2020)
Article
Management
Xueping Zhen, Shuangshuang Xu
Summary: This study examines the impact of pricing strategy on the selection of channel structure and joint decision-making of channel structure and pricing strategy. The results show that the pricing strategy plays a significant role in channel structure selection, with manufacturers and retailers having different preferences under different circumstances. When both the manufacturer and retailer jointly determine the pricing strategy and channel structure, the optimal choice depends on the agency fee and channel competition.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2022)
Article
Management
Xueping Zhen, Shuangshuang Xu, Yongjian Li, Dan Shi
Summary: This study examines whether and how retailers should sell their products on third-party platforms and analyzes the impact of spillover effects between offline and internet channels on the decision-making process.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2022)
Article
Management
Weixin Shang, Gangshu (George) Cai
Summary: The study found that price matching negotiation can benefit the seller but hurt all buyers, while all firms can benefit from it under coordination. However, PM leads to less consumer utility and social welfare compared with simultaneous negotiation, unless the second buyer in PM is considerably weaker than the first buyer.
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
(2022)
Article
Management
Wenli Wang, Gangshu (George) Cai
Summary: Due to lack of collateral, banks have set loan limits as a risk-control measure for bank financing. Loan insurance has emerged as a useful tool to lift these limits. This article examines a supply chain consisting of a supplier and a capital-constrained buyer, studying the joint value of bank loans and loan insurance. The findings show that both the supplier and the buyer can benefit from bank financing with loan insurance, leading to higher order quantity and partial coordination of the entire supply chain. However, in cases of low production cost, a prisoner's dilemma can occur, which can be mitigated by government subsidies for insurance premiums to improve social welfare.
MANAGEMENT SCIENCE
(2023)
Article
Engineering, Manufacturing
Jin Li, Xiaodong Yang, Victor Shi, Gangshu (George) Cai
Summary: This paper examines the partial centralization structure in a supply chain and provides detailed analysis. The results show that partial centralization can generate desirable product sales pattern and alleviate the time-inconsistency problem associated with durable goods. This study fills the research gap in existing literature and has important implications for decision-making and product sales patterns in supply chains.
PRODUCTION AND OPERATIONS MANAGEMENT
(2023)
Article
Engineering, Manufacturing
Arcan Nalca, Gangshu (George) Cai
Summary: This study examines the influence of manufacturers' wholesale pricing strategies on supply chain members and consumers, as well as whether retailers provide price-matching guarantees when manufacturers allow it. The research finds that retailers are less likely to offer price-matching guarantees when manufacturers set discriminatory wholesale prices. However, under uniform wholesale pricing, price-matching guarantees thrive as long as the degree of demand or cost asymmetry is relatively low. Different firms have varying preferences for price-matching guarantees, but there is a Pareto zone where most entities prefer that either the more efficient retailer or the higher-cost retailer provides the guarantee. Nevertheless, uniform wholesale pricing reduces supply chain profit, consumer welfare, and overall social welfare.
PRODUCTION AND OPERATIONS MANAGEMENT
(2023)
Article
Business
Yingjue Zhou, Tieming Liu, Gangshu Cai
