Working Paper:
An Assessment of Randomized Inventory Policy in Supply Chains Under Multimodal Demand Distribution (Draft)
In inventory optimization, the randomized policy can outperform the deterministic one, but how such outperformance is determined, especially when demand follows a multimodal distribution, is poorly studied in previous literature. This paper studied how randomized policy outperforms deterministic policy in a single-period inventory optimization problem, where the demand follows the multimodal distribution driven by uncertainty in lead time. We first established some intuition regarding finding local optimal randomized policy and how its advantage over deterministic policy changes with some parameters under a simple unimodal demand distribution. Based on the intuitions, we next analyzed the outperformance of randomized policy over deterministic policy under the bimodal distribution of demand driven by delay uncertainty, emphasizing how the bimodality of demand distribution opened the possibility of a significant outperformance of randomized policy when out-of-stock probability is required to keep reasonably low. We also analyzed the outperformance of randomized policy under multimodal distribution driven by a more complex delay distribution, revealing a cyclical pattern of the outperformance as the mean delay probability increases. We finally proposed a simple yet efficient algorithm for finding global optimal randomized policy when demand follows a multimodal distribution.
An Clustering Approach of Product Cannibalization Detection using Price Effect Data(PDF)
Product categorization using a Cannibalization relationship is an emerging but still underdeveloped area of market research. Traditional agglomeration clustering algorithms are not suitable for this task. This paper proposes an agglomerative clustering algorithm that utilizes price effect data to identify products’ clustering structures effectively.
Research in Progress:
Greenwash, Financial Market, and Firm Dynamics: The role of environmental policy (With Yun Gao, Hong Kong Monetary Authority)
This paper studied the impact of environmental policy on firms' greenwashing behavior and dynamics in a DSGE model. Firms can issue regular and green bonds, facilitating their ‘greenwashing’ behavior. Calibrating U.S. data, We studied the distribution of firm and social pollution levels under various public policies, including carbon tax.
Impact of Pension Policy on regular-contingent employment structure (With Nuo Lei, National University of Singapore)
Contingent employment has been argued to affect social overall productivity growth negatively. In countries with an aging population, competition among different age groups for regular employment has significantly determined the regular-contingent employment structure. Using an overlapping generation model, this paper studies the impact of pension policy on regular-contingent employment distribution among various age groups.
Doctoral Thesis:
From Human Capital to Technology: The Process of Development and The Implication of Inequality (SSRN)
Aging Population, Housing Market, Life-Cycle Housing Choice in Urban China (SSRN)
Mandatory Savings, Favorable Loans and Housing Inequality: A Quantitative Evaluation on Housing Provident Fund in China (SSRN)