Although algorithmic decision support is omnipresent in many managerial tasks, a lack of algorithm transparency is often stated as a barrier to successful human–machine collaboration. In this paper, we analyze the effects of algorithm transparency on the use of advice from algorithms with...

This study examines human ordering behavior in service‐level inventory contracts, a class of contracts important in practice. Studies of wholesale price contracts find that people tend to place orders that are suboptimal and biased toward mean demand. Unlike wholesale price contracts,...

We investigate the impact of coordinating the timetable and the crew schedule in an operational freight railway system. Usually, those problems are solved sequentially—resulting in suboptimal schedules for train drivers due to large idle times between two train rides. We seek to coordinate the...

The European Research Center for Information Systems (ERCIS) was founded on October, 12th 2004. This Working Paper was written with respect to the establishment of ERCIS. Jörg Becker, Managing Director of the ERCIS, writes about fundamental issues of ERCIS. Furthermore all Founding Members...

Inventory optimization approaches typically optimize steady-state performance, but do not consider the transition of an initial state to the optimized state. In this study, we address this transition. Our research is motivated by a company that implemented an improved inventory policy for its...

Am 12. Oktober 2004 wurde das European Research Center for Information Systems (ERCIS) in einem feierlichen Gründungsakt ins Leben gerufen. In der Feierstunde im Schloss der Universität Münster haben Vertreter der Universität, der Politik, der Verwaltung und von Unternehmen ihre Visionen...

We analyze a supply chain in which a demand planner provides demand forecasts to a production planner. The production planner uses the forecasts to decide on the production quantities and needs information about the accuracy of the forecasts to determine the appropriate safety stock levels. The...

This paper has been motivated by a fleet optimization problem faced by one of the leading European cargo rail companies. The company operates a fleet of more than 100,000 rail cars and annually invests significant sums of money into new cars. Because the price tag of a new car is over 50,000...

Many companies have started segmenting customers to better match their products and services to the needs of the customers. We support this development by presenting a stochastic model of a rental system with two customer classes that was motivated by the operations of one of Europe's leading...