Advanced Business Analytics (eBook)

Dr. Fausto Pedro García Márquez got the European Doctorate on Engineering at University of Castilla-La Mancha (UCLM), 2004. He received his Engineering Degree from University of Murcia, Spain in 1998 and Technical Engineer Degree at UCLM in 1995, and the degree in Business Administration and Management at UCLM 2006. He also holds the titles of Supper Technician in Labor Risks Prevention by UCLM 2000 and Transport Specialist at the Polytechnic University of Madrid, Spain, 2001. He has been Senior Manager in Accenture 2013/2014. He is Senior Lecture (Full professor accredited) at UCLM, and Honorary Senior Research Fellow at Birmingham University UK, Lecturer in Instituto Europeo de Postgrado since 2014 and Director of Ingenium Research Group. He has been principal investigator in 3 European Projects, and 60 national and for company research projects. He has international and national patents, more than 110 international papers, 12 books and 3 International Awards in Engineering Management and Management Science. (www.uclm.es/profesorado/fausto) Dr. Benjamin Lev is Professor and Head of Decision Sciences at LeBow College of Business. He holds a PhD in Operations Research from Case Western Reserve University. Prior to joining Drexel university Dr. Lev held academic and administrative positions at Temple University, University of Michigan-Dearborn and Worcester Polytechnic Institute. He is the Editor-in-Chief of OMEGA-The International journal of Management Science; Co-Editor-in-Chief of International Journal of Management Science and Engineering Management; and serves on several other journal editorial boards. He has published ten books, numerous articles and organized many national and international conferences.  

Preface 6
Contents 10
About the Editors 12
Decision Making Approach for Optimal Business Investments 14
1 Introduction 14
2 DM Process 15
2.1 The Decision Maker 16
2.2 Constraints and Requirements 17
2.3 The Utility Function 17
2.4 Results 17
3 Logical Decision Trees 18
4 Binary Decision Diagrams 19
4.1 Ranking of the Basic Causes 19
4.1.1 Top-Down-Left-Right (TDLR) 20
4.1.2 Depth First Search (DFS) 20
4.1.3 The Breath First Search (BFS) 20
4.1.4 Level Method 21
4.1.5 AND Method 22
4.2 BDD Conversions 22
4.3 Analytical Expression 23
5 Optimization Approach in DM Process 26
6 Case Study 28
7 Conclusions 32
References 32
Integration of a Heuristic Method into an ERP Software: A Successful Experience for a Dynamic Multi-item Lot Sizing Problem 34
1 Introduction 34
2 Problem Formulation 36
3 The Heuristic Approach 38
4 Development and Implementation Within SAP Business One 40
5 Visual Example 42
5.1 Demands 42
5.2 Capacity 43
5.3 Setup Costs 43
6 Conclusions 49
References 49
Economic Viability Analytics for Wind Energy Maintenance Management 51
1 Introduction 51
2 Life Cycle Costs 52
3 Wind Turbines and Wind Turbine Condition Monitoring 52
3.1 Wind Turbines 52
3.2 Condition Monitoring for Wind Turbines 53
4 State of the Art 55
5 Case of Study 56
6 Application of the LCC Model 58
6.1 Model Definition 58
6.2 CMS Investment Costs 59
6.3 CMS Operation Costs 59
6.4 CMS Maintenance Costs 59
6.5 Maintenance Reduction Costs by CMS 59
6.6 Energy Production and Energy Losses by CMS 60
6.7 Net Present Value 60
6.8 Calculation of LCC 61
7 Conclusions 63
References 64
Introduction to Multi-attribute Decision Making in Business Analytics 67
1 Introduction 67
2 Data Envelopment Analysis (DEA) 68
2.1 Description and Uses 68
2.2 Methodology 68
2.3 Strengths and Limitations to DEA 69
2.4 Sensitivity Analysis 69
2.5 Illustrative Examples 70
3 Simple Additive Weighting (SAW) Method 74
3.1 Description and Uses 74
3.2 Methodology 74
3.3 Strengths and Limitations 75
3.4 Sensitivity Analysis 75
3.5 Illustrative Examples 75
3.6 SAW Using Rank Ordering of Data by Criteria 76
4 Analytical Hierarchy Process (AHP) 80
4.1 Description and Uses 80
4.2 Methodology of the Analytic Hierarchy Process 82
4.3 Strengths and Limitations of AHP 83
4.4 Sensitivity Analysis 84
4.5 Illustrative Examples 85
5 Technique of Order Preference by Similarity to the Ideal Solution (TOPSIS) 92
5.1 Description and Uses 92
5.2 Methodology 93
5.2.1 Normalization 95
5.3 Strengths and Limitations 96
5.4 Sensitivity Analysis 97
5.5 Illustrative Examples 97
6 Comparison of Results for the Kite Network 100
7 Technologies Available 101
References 102
How Business Analytics Should Work 104
1 A World in Transformation 104
1.1 Some Lasting Stumbling Blocks 105
2 Data Analysis and Synthesis 106
3 The Business Analytics Architecture (BAA) 107
3.1 Semantic Layer: Business Modelling 109
3.2 Mapping Layer: Conceptual Mapping 112
3.3 Data Layer: Data-Warehouses 113
4 Analytical Foundations 115
5 Discussion and Related Work 117
References 118
Vulnerability Analysis of a Signal-Controlled Road Network for Equilibrium Flow 120
1 Introduction 120
2 Problem Formulation 125
2.1 Notation 125
2.2 The Expected Performance Measure of a Signal-Controlled Road Network 126
2.3 The Expected Travel Time for Road Users 128
2.4 A Min-Max Mathematical Program 131
3 Solution Approach 135
3.1 Projection Operator 135
3.2 A Projection Approach 137
3.3 An Efficient Computation Scheme 138
4 Numerical Computations 140
5 Conclusion and Discussions 150
References 151
Analytical Model Implementing Objectives in EVM for Advanced Project Control 154
1 Introduction 154
2 Enhancing Business Value with Advanced Project Management 155
2.1 Advanced Earned Value Management 155
2.2 Project Driver: Objectives Accomplishment 157
3 An Analytical Model Implementing Objectives in EVM 159
3.1 Evaluation of Project Objectives Accomplishment 160
3.2 Impact of Initial Phases in the Objectives Accomplishment 160
3.3 Analytical Model Description 161
3.4 Example of Application of the Model 163
4 Case Study 166
5 Conclusions 173
References 173
Use of Excellence Models as a Management Maturity Model (3M) 175
1 Introduction 175
2 Structure of an Excellence Model for EFQM 176
2.1 Principles 177
2.2 Criteria 177
2.3 Assessment Framework 178
3 Business Process Maturity Models and Excellence Models 179
4 Measuring Management Maturity: A Real Case Study 180
4.1 Assessment of Management Values: Qualitative Evaluation 181
4.2 Assessment of Management Criteria: Quantitative Evaluation 181
5 Conclusions 184
References 189
AHP and Intuitionistic Fuzzy TOPSIS Methodology for SCM Selection 190
1 Introduction 190
2 Preliminaries 191
2.1 Basic Concept of AHP 191
2.2 FST 192
2.3 Basic Concept of IFS 193
3 AHP-IFT Hybrid Method 194
4 Numerical Examples 197
5 Conclusion 200
References 201
The Assessment and Selection of Hedge Funds 204
1 Introduction 204
2 Definitions 207
2.1 What Is a Hedge Fund? 207
2.2 Investment Strategies 207
2.3 Hedge Fund Indexes 208
2.4 Historical Return Analysis 208
3 Investment Strategies and Indexes 212
3.1 Ratios 213
4 How to Benchmark Hedge Funds. Should They Be Benchmarkable? 213
5 Assessment and Selection of Managers 216
References 218
Functional Data Analysis with an Application in the Capital Structure of California Hospitals 220
1 Introduction 220
2 Function Representations Using Basis Expansions 222
3 Recent Applications of FDA in Business Studies 223
3.1 Production and Operations 223
3.2 Marketing and Sales 224
4 Case Study: Capital Structure of California Hospitals 224
4.1 Data and Preparation 225
4.2 Construction of Functional Curves 225
4.3 Functional Clustering 229
4.4 Functional Principle Component Analysis 230
4.5 Functional Regression 231
References 232
A Software Application to Optimize the Visits of Sales/Marketing Agents to Their Customers in a Brewing Company 234
1 Introduction 234
2 Problem Description 235
3 Initial Goals and Final Scope 236
4 Software Applications 237
5 Mathematical Model 238
5.1 Static Planning 239
5.2 Dynamic Planning 242
6 Algorithm Development 244
6.1 Software Tools 244
6.2 Solution Algorithms 245
6.2.1 Static Planning 245
6.2.2 Dynamic Planning 248
7 Computing Results 248
7.1 Static Planning Results 249
7.2 Dynamic Planning Results 249
8 Conclusions 250
References 252