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Bardia Kamrad

MSF Faculty

Bardia Kamrad faculty member of McDonough School of BusinessBardia Kamrad’s primary research interest focuses on risk management and decision making problems in the face of uncertainty. Within this broad area, he has principally concentrated on operational risk management issues and related capital investment problems in production and manufacturing operations. The nature of Kamrad's research is interdisciplinary and effectively can be described as the interface between economics, finance, and operations. In this sense, one of his key research objectives has been to reconcile operations management with market and process related problems. "Essentially, through bridging such gaps, a more in-depth understanding and a greater economic perception regarding production processes can be achieved that is also strategically valuable to decision makers in this arena."

Kamrad has numerous related articles that address the joint problems of pricing, warranty and supply contracts, risk and profit sharing, and quality decisions within an options/economic framework. For instance, the risk associated with producing items when price uncertainty and system failures can be managed through innovative “warranty” contracts that include the moral hazard implications arising from shared expenditures. In other situations, his research uncovers how purchasing agreements with profit sharing provisions between a manufacturer and its suppliers can help mitigate operating risks arising from purchase quantity variations due to exchange rate uncertainties. In other settings, Kamrad's research demonstrates how production policies can be optimally changed over time to maximize profits when production yields are subject to random variation and demand for the product is uncertain.

Kamrad's broader research interests involve Applied Stochastic Processes; Applied Control Theory and Dynamic Programming; Contingent Claims Analysis; Warranty and Supply Contract valuation; Risk Management problems in Supply Chains; and Inventory modeling. His research has been published in prestigious academic journals, including Management Science; Operations Research; IIE Transactions; Naval Research Logistics; IEEE Transactions on Engineering Management; and the European Journal of Operational Research.

Kamrad is a member of the Institute for Operations Research and Management Science (INFORMS); Production and Operations Management Society (POMS). He also is a member of the American Finance Association (AFA), the Institute of Industrial Engineers (IIE), and the American Society of Civil Engineers (ASCE).

Kamrad's consulting experience is equally noteworthy and includes projects in risk management modeling, purchasing and inventory problems, and pricing and forecasting issues.

Kamrad teaches at the executive, graduate, and undergraduate levels. His current course offerings include: Real Options Valuation; Operations Research; Productions and Operations Management, Regression Analysis; and Quantitative Modeling.

Kamrad earned a bachelor’s degree in civil engineering from the University of Minnesota, a master’s degree in industrial management/technology management from the University of Wisconsin, and both master’s and doctoral degrees in operations research with a minor in operations management from the Weatherhead School of Management at Case Western Reserve University.

Selected Publications

Articles in journals:

  • B. Kamrad with K. Ord and R. Ernst. "Delivery Performance in Vendor Selection Decisions." The European Journal of Operational Research 176 (2007): 534-541.
  • B. Kamrad with R. Ernst. "Estimating Demand By Using Sales Information: Inaccuracies Encountered." The European Journal of Operational Research 174 (2006): 675-688.
  • B. Kamrad with K. Ord. "Market Risk and Process Uncertainty in Production Operations." Naval Research Logistics 53 (2006): 627-640.
  • B. Kamrad with A. Siddique. "Innovation Diffusion Uncertainty, Advertising and Pricing Policies." The European Journal of Operational Research 164 (2005): 829-850.
  • B. Kamrad with A. Siddique. "Supply Contracts, Profit Sharing, Switching and Reaction Options." Management Science 50.1 (2004).
  • B. Kamrad with R. Ernst. "An Economic Model for Evaluating Mining and Manufacturing Ventures with Output Yield Uncertainty." Operations Research 49.5 (2001).
  • B. Kamrad with R. Ernst. "Evaluation of Supply Chain Structures through Outsourcing and Postponement." The European Journal of Operational Research 124.3 (2000).
  • B. Kamrad and S. Lele. "Production, Operating Risk and Market Uncertainty: A Valuation Perspective on Controlled Policies." IIE Transactions: Scheduling and Logistics 30.5 (1998).
  • R. Ernst and B. Kamrad. "Allocation of Warehouse Inventory with Electronic Data Interchange and Fixed Order Intervals." The European Journal of Operational Research 103.1 (1997).
  • B. Kamrad and A. Reisman. "A Contingent Planning Process for Counter-trade Based Projects: A Decision Analytic Perspective." International Journal of Operations and Quantitative Management 3.1 (1997).
  • B. Kamrad. "A Lattice Claims Model for Capital Budgeting." IEEE Transactions on Engineering Management 42.2 (1995).
  • B. Kamrad and P. Ritchken. "Valuing Fixed Price Supply Contracts." The European Journal of Operational Research 74.1 (1994).
  • B. Kamrad with P. Ritchken. "Multinomial Approximating Models for Options With k State Variables." Management Science 37.12 (1991).
  • B. Kamrad with P. Ritchken. "A Binomial Contingent Claims Model for Valuing Risky Ventures." The European Journal of Operational Research 53.1 (1991).

Articles in books:

  • R. Ernst and B. Kamrad. "Multi-product Manufacturing with Stochastic Input Prices and Output Yield Uncertainty." Real Options in Capital Investment: New Contributions. Ed. L. Trigerogis. Greenwood/Prager, 1995.