Scale economies are commonplace in operations, yet because of analytical challenges, relatively little is known about how firms should compete in their presence. This paper presents a model of competition between two firms that face scale economies; (i.e., each firm's cost per unit of demand is...

Most performance evaluation models in the operations management literature implicitly assume that tasks possess standardized completion criteria. However, in many systems, particularly service and professional work, judgment is frequently required to determine how much time to allocate to a...

In many services, the quality or value provided by the service increases with the time the service provider spends with the customer. However, longer service times also result in longer waits for customers. We term such services, in which the interaction between quality and speed is critical, as...

In this paper, we present a normative study that describes the impact of discharging decisions in the face of resource shortages. We develop a model that represents the dynamics of a health care unit. Then, to capture the essence of discharge decisions, we consider discharge policies that...

The erosion of service quality throughout the economy is a frequent concern in the popular press. The American Customer Satisfaction Index for services fell in 2000 to 69.4%, down 5 percentage points from 1994. We hypothesize that the characteristics of services---inseparability, intangibility,...

We view each station in a Jackson network as a queue of tasks, of a particular type, which are to be processed by the associated specialized server. A complete pooling of queues, into a single queue, and servers, into a single server, gives rise to an M/PH/1 queue, where the server is flexible...

This paper uses the context of online banking to investigate the consequences of using self-service distribution channels to alter customer interactions with the firm. Using a sample of retail banking customers observed over a 30-month period at a large U.S. bank, we test whether changes in...

Living donors are a significant and increasing source of livers for transplantation, mainly because of the insufficient supply of cadaveric organs. We consider the problem of optimally timing a living-donor liver transplant to maximize the patient's total reward, such as quality-adjusted life...

Mathematical programs to schedule service employees at minimum cost represent each feasible schedule, or tour, with an integer variable. In some service organizations, policies governing employee scheduling practices may permit millions of different tours. A common heuristic strategy is to...

Third-party process certification programs such as the ISO 9001 and capability maturity model (CMM) have been widely adopted in recent years. In this study we employ three competing theoretical frameworks--signaling, efficiency gains, and institutional theory--to analyze the motivations for a...