The paper studies the bank’s lending decision, based on three observed phenomena: Banks earn substantial profits from off-balance sheet activities and services, which they take into account in their lending decisions. Secondly, the critical point in the customer relation is the loan decision: the probability of the customer staying with the bank is a function of the loan extended each time one ...

The highway pricing problem asks for prices to be determined for segments of a single highway such as to maximize the revenue obtainable from a given set of customers with known valuations. The problem is NP-hard and a recent quasi-PTAS suggests that a PTAS might be in reach. Yet, so far it has resisted any attempt for constant-factor approximation algorithms. We relate the tractability of the ...

Data mining has been applied to CRM (Customer Relationship Management) in many industries witha limitedsuccess. Most data mining tools can only discover customer models or profiles (such as customers who are likely attritors and customers who are loyal), but not actions that would improve customer relationship (such as changing attritors to loyal customers). We describe a novel algorithm that s...

Quality management is continuously evolving and the progression so far is frequently described in terms of four stages. According to these descriptions, Total Quality Management (TQM) constitutes the currently highest level, or fourth stage, of quality management. Despite the divergence of views on what constitutes TQM, it is commonly described as a number of diverse activities, here designated...

An integrated model considers all parameters and elements of different deficiencies in one problem. This paper presents a new integrated model of a supply chain that simultaneously considers facility location, vehicle routing and inventory control problems as well as their interactions in one problem, called location-routing-inventory (LRI) problem. This model also considers stochastic demands ...

This paper considers the comparison of two ðs; SÞ production inventory systems with retrials of unsatisfied customers. The time for producing and adding each item to the inventory is exponentially distributed with rate b. However, a production rate ab higher than b is used at the beginning of the production. The higher production rate will reduce customers’ loss when inventory level appro...

Value co-creation has emerged as a new innovation paradigm emphasizing that customers and end users should be considered as active participants in the design and development of personalized products, services, and experiences. 1 It is based on the design and implementation of customer participation platforms, providing firms with the technological and human resources, tools, and mechanisms to b...

In this work, we propose a hybrid heuristic in order to solve the Team Orienteering Problem (TOP). Given a set of points (or customers), each with associated score (profit or benefit), and a team that has a fixed number of members, the problem to solve is to visit a subset of points in order to maximize the total collected score. Each member performs a tour starting at the start point, visiting...

Objective There is a general tendency toward direct marketing these days. Therefore, instead of designing advertisement and marketing strategies for all the customers in the market, it is recommended to classify the customers based on clustering techniques and then design specific strategies accordingly. This will reduce marketing and advertisement expenses, increase sale department efficientl...