Min - Global business analytics models : concepts and applications in predictive, healthcare, supply chain, and finance analytics

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Concepts and Applications in Predictive, Healthcare,
Supply Chain,
and Finance Analytics

Hokey Min

James R. Good, Chair in Global Supply Chain Strategy at
Bowling Green State University

Publisher: Paul Boger
Editor-in-Chief: Amy Neidlinger
Executive Editor: Jeanne Glasser Levine
Cover Designer: Alan Clements
Managing Editor: Kristy Hart
Senior Project Editor: Andy Beaster
Copy Editor: Cheri Clark
Proofreader: Anne Goebel
Indexer: Johnna Dinse
Compositor: Gloria Schurick
Manufacturing Buyer: Dan Uhrig

2016 by Hokey Min

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Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America

First Printing March 2016

ISBN-10: 0-13-405760-0
ISBN-13: 978-0-13-405760-6

Pearson Education LTD.
Pearson Education Australia PTY, Limited
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Pearson Education Asia, Ltd.
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Pearson Educacin de Mexico, S.A. de C.V.
Pearson EducationJapan
Pearson Education Malaysia, Pte. Ltd.

Library of Congress Control Number: 2015959815

This book is dedicated to my late father,
B.J. Min; my mother, H.W. Seo;
my wife, Christine; and my son, Alexander Snow.

In the knowledge-based global economy, multinational firms around the world are often challenged by the increased pressure to monetize information, coordinate information flows, and improve business outcomes by creating actionable insights. Such pressure gave birth to business analytics, which has become one of the most popular buzzwords in todays business world. Business analytics, however, is still an emerging concept and thus can be easily misunderstood by many novices who are not equipped with technical knowledge. This book is intended to help those novices increase their analytics competency and skills essential for solving complex international business puzzles. These puzzles may encompass global outsourcing (or off-shoring), contract manufacturing, foreign market entry, foreign direct investment, global branding, and other supply-chain-related activities across the world. Thus, a majority of the contents in this book underscore the application potentials of business analytics for successful global business operations as opposed to the theoretical underpinning of analytical tools, which other books in the market have already expounded. With a different focus from different perspectives, this book writing has been challenging but rewarding in the sense that it allows me to enter the futuristic world of curiosity, imagination, and endless opportunity created by an exciting discipline of business analytics.

There are many individuals who made writing this book more enjoyable and doable, even with the constant challenges of juggling book-writing tasks with my professional and personal obligations. So I owe a great debt of gratitude to these individuals for sharing their analytical expertise with me and encouraging me to maintain mental toughness throughout the book-writing process. Some of these individuals include Drs. Martha Cooper, John Current, and David Schilling of the Ohio State University, Robert Markland of the University of South Carolina, and Lori Franz of the University of Missouri, who nurtured my fundamental analytical skills while I was a graduate student.

In addition, I would be remiss if I did not acknowledge a number of my longtime professional colleagues and friends who are willing to share their in-depth knowledge of business analytics with me during my whole academic career. These individuals include Dr. Emanuel Melachrinoudis of Northeastern University, Dr. Angappa Gunasekaran of University of Massachusetts-Dartmouth, Dr. Marc Schniederjans of University of Nebraska-Lincoln, Dr. Arthur Yeh of Bowling Green State University, Dr. Seong-Jong Joo of Central Washington University, Dr. Ik-Whan Kwon of Saint Louis University, Dr. Thomas Lambert of Northern Kentucky University, Dr. Sean B. Eom of Southwest Missouri State University, Dr. Mahesh Gupta of University of Louisville, Dr. Bih-Ru Lea of Missouri Tech University, Dr. Wen-Bin Vincent Yu of Missouri Tech University, Dr. Dooyoung Shin of Minnesota State University, Dr. Ahmed Emam of King Saud University (Saudi Arabia), Dr. Seluk Perin of Karadeniz Technical University (Turkey), Dr. Soon-Hong Min of Yonsei University (Korea), Dr. Byung-in Park of Chonnam National University (Korea), Dr. Yonghae Lee of Hanyang University (Korea), Dr. Mitsuo Gen of Waseda University (Japan) and POSTECH (Korea), Dr. Gengui Zhou of Zhejiang University of Technology (China), and Dr. Subramanian Nachiappan of University of Nottingham-Ningbo (China).

Last, but not least, I am very grateful to my wife and son for their continuous support and encouragement, while tolerating a boring husband and father who spent most of his free time in the isolated study room. Also, I would like to thank Jeanne Glasser Levine and Natasha Lee of Pearson Education and their supporting casts for their professional advice and editing jobs. Finally, I am deeply indebted to Dean Raymond Braun of Bowling Green State University, Dr. Sang-Hyun Suh, Dr. Jongwon Park, and Dr. Yong-Kon Lim of the Korea Research Institute of Ships & Ocean Engineering (KRISO), who wholeheartedly supported my efforts to utilize business analytics for solving real-world problems encountered by both profit and nonprofit organizations.

Hokey Min
Bowling Green, Ohio

Dr. Hokey Min is James R. Good Chair in Global Supply Chain Strategy in the Department of Management at Bowling Green State University. He was Professor of Supply Chain Management, Distinguished University Scholar, and Founding Executive Director of the Logistics and Distribution Institute (LoDI), the UPS Center for World-Wide Supply Chain Management, and the Center for Supply Chain Workforce Development at the University of Louisville. He earned his Ph.D. degree in Management Sciences and Logistics from the Ohio State University. His expertise includes global logistics strategy, healthcare supply chains, closed-loop supply chains, e-synchronized supply chains, service benchmarking, and supply chain modeling. He has published more than 175 scholarly articles in various refereed journals, including