American Institute of Mathematical Sciences

Advanced
October  2010, 6(4): 729-750. doi: 10.3934/jimo.2010.6.729

On information quality ranking and its managerial implications

Jian Yang 1, and  Youhua (Frank) Chen 2,

1. 

Department of Mechanical and Industrial Engineering, New Jersey Institute of Technology, Newark, NJ 07102, United States
2. 

Department of Systems Engineering & Engineering Management, Chinese University of Hong Kong, Shatin, New Territory, Hong Kong, China

Received  December 2008 Revised  April 2010 Published  September 2010

We study the quality ranking of different information structures. In a unified setting, we present eight representations of essentially the same notion that may arise in distinct literatures, and also establish the intricate relationships among them. The forms that are less familiar to researchers turn out to be more relevant to the operations management context. We also relate the information structure ranking to concepts often invoked in operations management literature, such as advance demand information and decision postponement. Using some of the established relations, we argue for building a cross-docking facility as close as possible to the distribution centers it serves.
Keywords: Decision Postponement., Information Structure, Advance Demand Information, Operations Management.
Mathematics Subject Classification: Primary: 62C05, 91B44; Secondary: 60J1.
Citation: Jian Yang, Youhua (Frank) Chen. On information quality ranking and its managerial implications. Journal of Industrial & Management Optimization, 2010, 6 (4) : 729-750. doi: 10.3934/jimo.2010.6.729
References:
[1]

P. Billingsley, "Probability and Measure," 3rd edition,, John Wiley & Sons, (1995).   Google Scholar

[2]

D. Blackwell, Comparison of experiments,, Proceedings of the Second Berkeley Symposium on Mathematical Statistics and Probability, (1951), 93.   Google Scholar

[3]

D. Blackwell, Equivalent comparison of experiments,, Annals of Mathematical Statistics, 24 (1953), 265.  doi: 10.1214/aoms/1177729032.  Google Scholar

[4]

H. F. Bohnenblust, L. S. Shapley and S. Sherman, "Reconnaissance in Game Theory,", RM-208, (1949).   Google Scholar

[5]

C. H. Boll, "Comparison of Experiments in the Infinite Case and the Use of Invariance in Establishing Sufficiency,", Ph.D. Dissertation, (1955).   Google Scholar

[6]

J. Cremer, A simple proof of Blackwell's "Comparison of Experiments'' theorem,, Journal of Economic Theory, 27 (1982), 439.  doi: 10.1016/0022-0531(82)90040-0.  Google Scholar

[7]

G. Gallego and Ö. Özer, Integrating replenishment decisions with advance demand information,, Management Science, 47 (2001), 1344.  doi: 10.1287/mnsc.47.10.1344.10261.  Google Scholar

[8]

S. Gavirneni, R. Kapuscinski and S. Tayur, Value of information in capacitated supply chains,, Management Science, 45 (1999), 16.  doi: 10.1287/mnsc.45.1.16.  Google Scholar

[9]

J. Green and N. Stokey, Two representations of information structures and their comparisons,, Technical Report No. 271, (1978).   Google Scholar

[10]

R. Güllü, On the value of information in dynamic production/inventory problems under forecast evolution,, Naval Research Logistics, 43 (1996), 289.  doi: 10.1002/(SICI)1520-6750(199603)43:2<289::AID-NAV8>3.0.CO;2-6.  Google Scholar

[11]

R. Hariharan and P. H. Zipkin, Customer-order information, leadtimes, and inventories,, Management Science, 41 (1995), 1599.  doi: 10.1287/mnsc.41.10.1599.  Google Scholar

[12]

J-J. Laffont, "The Economics of Uncertainty and Information," Translated by J. P. Bonin and H. Bonin,, The MIT Press, (1989).   Google Scholar

[13]

L. LeCam, Sufficiency and approximate sufficiency,, Annals of Mathematical Statistics, 35 (1964), 1419.  doi: 10.1214/aoms/1177700372.  Google Scholar

[14]

J. Marschak and K. Miyasawa, Economic comparability of information systems,, International Economic Review, 9 (1968), 137.  doi: 10.2307/2525472.  Google Scholar

[15]

J. F. Mertens, S. Sorin and S. Zamir, "Repeated Games,", CORE, (1994).   Google Scholar

[16]

P. Milgrom and J. Roberts, Communication and inventories as substitutes in organizing production,, Scandinavian Journal of Economics, 90 (1988), 275.  doi: 10.2307/3440309.  Google Scholar

[17]

Ö. Özer, Replacement strategies for distribution systems under advance demand information,, Management Science, 49 (2004), 255.   Google Scholar

[18]

S. Sherman, On a theorem of Hardy, Littlewood, Polya, and Blackwell,, Proceedings of the National Academy of Science, 37 (1951), 826.  doi: 10.1073/pnas.37.12.826.  Google Scholar

[19]

C. Stein, "Notes on the Comparison of Experiments,", Report, (1951).   Google Scholar

[20]

L. B. Toktay, L. B. and L. M. Wein, Analysis of a forecasting-production-inventory system with stationary demand,, Management Science, 47 (2001), 1268.  doi: 10.1287/mnsc.47.9.1268.9787.  Google Scholar

[21]

E. Torgersen, "Comparison of Statistical Experiments,", Cambridge University Press, (1991).   Google Scholar

[22]

J. A. Van Mieghem and M. Dada, Price versus production postponement: Capacity and competition,, Management Science, 45 (1999), 1631.  doi: 10.1287/mnsc.45.12.1631.  Google Scholar

[23]

K. Zhu and U. W. Thonemann, Modeling the benefits of sharing future demand information,, Operations Research, 52 (2004), 136.  doi: 10.1287/opre.1030.0061.  Google Scholar

show all references

References:
[1]

P. Billingsley, "Probability and Measure," 3rd edition,, John Wiley & Sons, (1995).   Google Scholar

[2]

D. Blackwell, Comparison of experiments,, Proceedings of the Second Berkeley Symposium on Mathematical Statistics and Probability, (1951), 93.   Google Scholar

[3]

D. Blackwell, Equivalent comparison of experiments,, Annals of Mathematical Statistics, 24 (1953), 265.  doi: 10.1214/aoms/1177729032.  Google Scholar

[4]

H. F. Bohnenblust, L. S. Shapley and S. Sherman, "Reconnaissance in Game Theory,", RM-208, (1949).   Google Scholar

[5]

C. H. Boll, "Comparison of Experiments in the Infinite Case and the Use of Invariance in Establishing Sufficiency,", Ph.D. Dissertation, (1955).   Google Scholar

[6]

J. Cremer, A simple proof of Blackwell's "Comparison of Experiments'' theorem,, Journal of Economic Theory, 27 (1982), 439.  doi: 10.1016/0022-0531(82)90040-0.  Google Scholar

[7]

G. Gallego and Ö. Özer, Integrating replenishment decisions with advance demand information,, Management Science, 47 (2001), 1344.  doi: 10.1287/mnsc.47.10.1344.10261.  Google Scholar

[8]

S. Gavirneni, R. Kapuscinski and S. Tayur, Value of information in capacitated supply chains,, Management Science, 45 (1999), 16.  doi: 10.1287/mnsc.45.1.16.  Google Scholar

[9]

J. Green and N. Stokey, Two representations of information structures and their comparisons,, Technical Report No. 271, (1978).   Google Scholar

[10]

R. Güllü, On the value of information in dynamic production/inventory problems under forecast evolution,, Naval Research Logistics, 43 (1996), 289.  doi: 10.1002/(SICI)1520-6750(199603)43:2<289::AID-NAV8>3.0.CO;2-6.  Google Scholar

[11]

R. Hariharan and P. H. Zipkin, Customer-order information, leadtimes, and inventories,, Management Science, 41 (1995), 1599.  doi: 10.1287/mnsc.41.10.1599.  Google Scholar

[12]

J-J. Laffont, "The Economics of Uncertainty and Information," Translated by J. P. Bonin and H. Bonin,, The MIT Press, (1989).   Google Scholar

[13]

L. LeCam, Sufficiency and approximate sufficiency,, Annals of Mathematical Statistics, 35 (1964), 1419.  doi: 10.1214/aoms/1177700372.  Google Scholar

[14]

J. Marschak and K. Miyasawa, Economic comparability of information systems,, International Economic Review, 9 (1968), 137.  doi: 10.2307/2525472.  Google Scholar

[15]

J. F. Mertens, S. Sorin and S. Zamir, "Repeated Games,", CORE, (1994).   Google Scholar

[16]

P. Milgrom and J. Roberts, Communication and inventories as substitutes in organizing production,, Scandinavian Journal of Economics, 90 (1988), 275.  doi: 10.2307/3440309.  Google Scholar

[17]

Ö. Özer, Replacement strategies for distribution systems under advance demand information,, Management Science, 49 (2004), 255.   Google Scholar

[18]

S. Sherman, On a theorem of Hardy, Littlewood, Polya, and Blackwell,, Proceedings of the National Academy of Science, 37 (1951), 826.  doi: 10.1073/pnas.37.12.826.  Google Scholar

[19]

C. Stein, "Notes on the Comparison of Experiments,", Report, (1951).   Google Scholar

[20]

L. B. Toktay, L. B. and L. M. Wein, Analysis of a forecasting-production-inventory system with stationary demand,, Management Science, 47 (2001), 1268.  doi: 10.1287/mnsc.47.9.1268.9787.  Google Scholar

[21]

E. Torgersen, "Comparison of Statistical Experiments,", Cambridge University Press, (1991).   Google Scholar

[22]

J. A. Van Mieghem and M. Dada, Price versus production postponement: Capacity and competition,, Management Science, 45 (1999), 1631.  doi: 10.1287/mnsc.45.12.1631.  Google Scholar

[23]

K. Zhu and U. W. Thonemann, Modeling the benefits of sharing future demand information,, Operations Research, 52 (2004), 136.  doi: 10.1287/opre.1030.0061.  Google Scholar

[1]

Juliang Zhang, Jian Chen. Information sharing in a make-to-stock supply chain. Journal of Industrial & Management Optimization, 2014, 10 (4) : 1169-1189. doi: 10.3934/jimo.2014.10.1169
[2]

Chih-Chiang Fang. Bayesian decision making in determining optimal leased term and preventive maintenance scheme for leased facilities. Journal of Industrial & Management Optimization, 2020  doi: 10.3934/jimo.2020127
[3]

Emma D'Aniello, Saber Elaydi. The structure of $ \omega $-limit sets of asymptotically non-autonomous discrete dynamical systems. Discrete & Continuous Dynamical Systems - B, 2020, 25 (3) : 903-915. doi: 10.3934/dcdsb.2019195

2019 Impact Factor: 1.366

Tools

Metrics

  • PDF downloads (25)
  • HTML views (0)
  • Cited by (0)

Other articles
by authors

[Back to Top]

Copyright © 2021 American Institute of Mathematical Sciences