Fall 2001

ME/IE 8773-8774

Modeling Electronic Market Intermediation in the Supply Chain

by

S. David Wu
Professor and Chair
Department of Industrial and Systems Engineering
P.C. Rossin College of Engineering
Lehigh University

Wednesday, December 5, 2001
3:30-4:30 p.m.
Room 108 ME
Broadcast on UNITE Channel A
Coffee and cookies will be available in 152 ME following the seminar

We view electronic markets as an emerging model of communication and competition, and the key to coordinate the industrial supply chain. Despite of the recent slow-down of electronic commerce and other high-tech sectors, the fundamental transition of industrial supply chains to the realm of eCommerce is unavoidable, and remains the most critical economic trend in the decades to come. Our primary interest is to explore different forms of electronic market intermediation and their impact on different facets of supply chain transactions. We will discuss three basic forms of electronic intermediation: Auction and Exchange, Bargaining and Negotiation, and Coalition and Alliance. To demonstrate the value of analytical models in this context, we will provide detailed analysis for one of the above market intermediation using game theoretic models. We analyze different forms of auction mechanisms currently exist in the web and their efficiency from the viewpoints of the competing suppliers, the buyer, and the market intermediary. Using insights from the analysis, we will discuss possible ways the market mechanism could be improved. To provide additional practical insights, we will discuss a case study on high-tech capacity reservation.

S. David Wu is Professor and Chair of the Department of Industrial and Systems Engineering at Lehigh University. He is also director of the Global Manufacturing Logistics doctoral fellows program, an NSF IGERT program in partnership with the Wharton School, University of Pennsylvania. Professor WuÕs research interests and publications are in the general areas of supply chain logistics, optimization, and game theoretic analysis. He has published his work in journals such as Operations Research, Management Science, IEEE Transactions, IIE Transactions, and Naval Research Logistics. Professor WuÕs research has been supported by NSF, DOD, and numerous industrial firms such as Lucent Technologies, Agere Systems, Ford, Unisys, Bethlehem Steel, PP&L, and GM. His research in planning, scheduling, capacity analysis, and optimization algorithms have been tested, implemented, and used in various industry settings. Professor Wu received his M.S. and Ph.D. in Industrial Engineering from the Pennsylvania State University. His research and working papers can be found in his web site.

Informal Faculty Luncheon: Wednesday, December 5, 2001, 12:00 noon Prof. Wu will be able to attend.