Michigan professor to give sourcing talk Monday

Izak Duenyas, professor and chair of the Department of Operations and Management Science in the Ross School of Business at the University of Michigan, will give a talk Monday (Sept. 20) at 3 p.m. in Room 203 of the Zachry Engineering Center at Texas A&M.Duenyas' talk, "Sourcing Under Asymmetric Information," is part of the Department of Industrial and Systems Engineering's seminar series, sponsored by Parsons.Abstract We consider two problems of sourcing under asymmetric information. We first consider a buyer who possesses multiple dimensions of private information (e.g., cost and demand) and whether the buyer would be better off by possessing less private information. We show that buyers may be better off with less private information, but interestingly "revealing" the information may not be optimal for the buyer. We then consider whether two firms that use the same component made by a single powerful supplier gain an advantage by "pooling" their demands. The interesting result is that under this scenario, pooling occurs for the opposite reasons traditionally attributed to pooling (i.e., it is better to pool to increase demand variability rather than decrease it).(Joint work with Dimitris Kostamis, Bin Hu and Damian Beil)Bio Izak Duenyas is the John Psarouthakis Professor of Manufacturing Management and Professor and Chair of Operations and Management Science at the Ross School of Business. He also holds an appointment as a professor in the Department of Industrial and Operations Engineering.Duenyas' research interests are in supply chain management, capacity management, and control and analysis of production systems. He is an area editor for Operations Research and has widely published in journals such as Operations Research, Management Science, Journal of Applied Probability and MSOM. He has been awarded the EMBA Teaching Award three times by EMBA students in the Ross School.