Woonghee Tim Huh
Relevant Degree Programs
Graduate Student Supervision
Doctoral Student Supervision (Jan 2008 - Nov 2019)
No abstract available.
This dissertation addresses two topics in the domain of operations management. First we study a single utility’s optimal policies under the Renewable Portfolio Standard, which requires it to supply a certain percentage of its energy from renewable resources. The utility demonstrates its compliance by holding a sufficient amount of Renewable Energy Certificates (RECs) at the end of each year. The utility’s problem is formulated as a stochastic dynamic program. The problem of determining the optimal purchasing policies under stochastic demand is examined when two energy options, renewable or regular, are available, with different prices. Meanwhile, the utility can buy or sell RECs in any period before the end of the horizon in an outside REC market. Both the electricity prices and REC prices are stochastic. We find that the optimal trading policy in the REC market is a target interval policy. Sufficient conditions are obtained to show when it is optimal to purchase only one kind of renewable energy and regular energy, and others to show when it is optimal to purchase both of them. Explicit formulas are derived for the optimal purchasing quantities in each case. In the second essay, we examine the interaction between a buyer (Original Equipment Manufacturer, OEM) and his supplier during new product development. A “white box” relationship is assumed: the OEM designs the specification of the product and outsources the production to his supplier. The supplier may suggest potential specification problems. Our research is motivated by the fact that the supplier may detect potential specification problems, and one cannot take for granted that the supplier would inform the OEM. We solve an optimization problem from the perspective of the OEM. We first prove that it is strictly better for the OEM to design the contract so that the supplier will inform the OEM should she detect any flaws. Then we characterize the optimal solutions for the OEM. We also perform some sensitivity analysis at the end.
No abstract available.
This thesis comprises three chapters with applications of the stochastic optimization models in healthcare as a central theme. The first chapter considers a patient screening problem. Patients on the kidney transplant waiting list are at higher risk for developing cardiovascular disease (CVD), which makes them ineligible for transplant. Therefore, transplant centers screen waiting patients to identify patients with severe CVD. We propose a model for finding screening strategies, with the objective of minimizing sum of the expected screening cost and the expected penalty cost associated with transplanting an organ to an ineligible patient. Our results suggest that current screening guidelines, which are only based on patients' risk for developing CVD, are significantly dominated by policies that also consider factors related to patients' waiting time.In the second chapter, we extend our results from the first chapter to the case of inspecting a vital component which is needed at a random future time when an emergency occurs. If the component is not operational at that time, the system incurs a large penalty, which we want to avoid through inspections and replacements. We propose a model and solution algorithm for finding an inspection policy that minimizes the infinite horizon discounted expected penalty, replacement, and inspection costs. We also discuss other structural properties of the solution, as well as insights based on numerical results. In the third chapter, we consider inventory decisions regarding issuing blood in a hospital. This research is motivated by recent findings in medicine that the age of transfused blood can affect health outcomes, with older blood contributing to more complications. Current practice at hospital blood banks is to issue blood in order from oldest to youngest inventory, so as to minimize shortage. However, the conflicting objective of reducing the age of blood transfused requires an issuing policy that also depends on the inventory of units of different ages. We propose a model that balances the trade-off between the average age of blood transfused and the shortage rate. Our numerical results suggest we can significantly reduce the age of transfused blood with a relatively small increase in the shortage rate.
Master's Student Supervision (2010 - 2018)
This research studies the delivery service assortment and product pricing problem in the context of online retailing where the seller selects a series of delivery options from a set of available alternatives for the customers to choose from and decides the price for the product and the listed surcharge for each delivery service. We aim to examine the impact of seller's pricing flexibility and customer rating on the optimal decisions and the optimal expected profit of the seller. By solving and comparing the results of four related problems, we find that usually it would be optimal for the seller to include all the available delivery options and charge a constant mark-up for all the options. But when the customer rating is aggregated, the seller would have to solve a combinatorial optimization problem to find out the optimal assortment when pricing is restricted to the product only and he should differentiate the mark-up for each option when he enjoys the pricing flexibility to re-price the quoted surcharges. We also show that two simple heuristic algorithms provide very good performance for the mentioned combinatorial optimization problem. We explain why the aggregated rating would only hurt the seller and how pricing flexibility could remove its negative effect while assortment adjustment can only weaken its impact. In addition, numerical studies present the comparison between the two main problems with aggregated customer rating and provide some observations of the impact on delivery service providers and the customers. The findings in this thesis yield useful managerial insights for the delivery service providers as well as the seller for making their strategic decisions.