MA, PhD (Cambridge)
Associate Dean (Research);
H70 - Abercrombie Building
The University of Sydney
NSW 2006 Australia
|Telephone||+61 2 9036 7546|
|Fax||+61 2 9351 6409|
Eddie Anderson is Professor of Decision Sciences and currently holds the position of Associate Dean (Research) and Associate Dean (Research Education) at the University of Sydney Business School. Prior to joining the University of Sydney in 2008, he was at the Australian Graduate School of Management, University of New South Wales. Eddie has an honours degree in Mathematics from Cambridge, and a PhD in Operations Management, also from the University of Cambridge.
Eddie is known for work in optimization; scheduling theory and game theory. He has wide ranging interests in supply chains, particularly in relation to contracts and risk. Much of his research involves the application of these ideas in energy markets. In 2007-2008 he was Joint Director of the Centre for Energy and Environmental Markets at UNSW. He has been Area Editor for Energy at the journal Operations Research since 2012.
Risk management is also the focus of Eddie’s teaching and in 2014 he published an advanced text with Wiley: “Business Risk Management: Models and Analysis”.
Eddie has published 65 papers in international academic journals. Google Scholar shows that he has over 3500 career citations and an h-index of 31. Fourteen students have successfully completed PhDs under his supervision.
Eddie has held a succession of academic leadership roles: Associate Dean Research, AGSM, UNSW 2002-2004; Acting Dean AGSM 2006; Postgraduate Associate Dean Faculty of Business, UNSW 2006-2008; and Chair, Discipline of Business Analytics, Sydney University 2008-2013.
Australian Financial Review
Professor Eddie Anderson was quoted in an article published by the Australian Financial Review about how there is still a place for value at risk modelling if its limitations are known.
Anderson EJ 2014 'Business Risk Management: Models and Analysis', John Wiley & Sons, Chichester, United Kingdom
Anderson EJ 2014 'Rethinking Risk Trading in an Electricity Market Context', 20th Conference of the International Federation of Operational Research Societies IFORS, Barcelona, Spain, 18th July 2014
Anderson EJ 2013 'On the existence of supply function equilibria', Mathematical Programming (Special Issue on Challenges and opportunities for optimization in electricity systems), vol.140:2, pp. 323-49
Anderson EJ 2013 'Competing for Reservation Payments', INFORMS 2013 Annual Meeting, Minneapolis, United States, 9th October 2013
Anderson EJ and Chen B 2013 'Competition between suppliers with reservation and execution prices', 26th European Conference on Operational Research EURO MMXIII, Rome, Italy, 4th July 2013
Anderson EJ and Qian C 2012 'Bidding for work: Choosing quality variables when buyer's choice is uncertain', 4th Production and Operations Management World Conference P&OM 2012, Amsterdam, Netherlands, 5th July 2012
Anderson EJ 2011 'A new model for cycles in retail petrol prices', European Journal of Operational Research, vol.210:2, pp. 436-447
Anderson EJ, Coltman T, Devinney TM and Keating B 2011 'What drives the choice of third-party logistics provider?', Journal of Supply Chain Management, vol.47:2, pp. 97-115
Anderson EJ and Cau TDH 2011 'Implicit collusion and individual market power in electricity markets', European Journal of Operational Research, vol.211:2, pp. 403-14
Anderson EJ and Bao JY 2010 'Price competition with integrated and decentralized supply chains', European Journal of Operational Research, vol.200:1, pp. 227-34
Anderson EJ and Cau TDH 2009 'Modeling Implicit Collusion Using Coevolution', Operations Research, vol.57:2, pp. 439-55
Anderson EJ 2009 'Supply functions for electricity markets: the priority of optimization over equilibrium', The 20th International Symposium of Mathematical Programming (ISMP), Chicago, United States, 28th August 2009
Anderson EJ and Hu X 2008 'Strategic retailer behaviour in an electricity contract market', International Journal of Industrial Organization, vol.26:3, pp. 679-694
Anderson EJ and Hu X 2008 'Finding supply function equilibria with asymmetric firms', Operations Research, vol.56, pp. 697-711
Anderson EJ, Kelly F, Steinberg R and Waters R 2007 'Erratum: A contract and balancing mechanism for sharing capacity in a communication network', Management Science, vol.53:6, pp. 1029-1031
Anderson EJ, Philpott AB and Xu H 2007 'Modelling the effects of interconnection between electricity markets', Mathematical Methods of Operations Research, vol.65:1, pp. 1-26
Anderson EJ, Hu X and Winchester D 2007 'Forward contracts in electricity markets: the Australian experience', Energy Policy, vol.35:5, pp. 3089-3103
Anderson EJ, Kelly F and Steinberg R 2006 'A contract and balancing mechanism for sharing capacity in a communication network', Management Science, vol.52:1, pp. 39-53
Anderson EJ and Xu H 2006 'Optimal supply functions in electricity markets with option contracts and non-smooth costs', Mathematical Methods of Operations Research, vol.63:3, pp. 387-411
Anderson EJ and Xu H 2005 'Supply function equilibria in electricity spot markets with contracts and price caps', Journal of Optimization Theory and Applications, vol.124:2, pp. 257-283
Anderson EJ and Xu H 2005 'Epsilon-optimal bidding in an electricity market with discontinuous market distribution function', SIAM Journal on Control and Optimization, vol.44:4, pp. 1391-1418
Anderson EJ and Potts CN 2004 'On-line scheduling of a single machine to minimize total weighted completion time', Mathematics of Operations Research, vol.29:3, pp. 686-697
Anderson EJ and Xu H 2004 'Nash equilibria in electricity markets with discrete prices', Mathematical Methods of Operations Research, vol.60:2, pp. 215-238
Anderson EJ and Xu H 2003 'Nash equilibria in electricity markets with fixed price points' in Optimization and Industry: New Frontiers, ed. P.M Pardalos and V Korotkikh, Kluwer, Dordrecht, Netherlands, pp. 141-157
Anderson EJ, Glass C and Potts C 2003 'Local search in combinatorial optimization: Machine Scheduling' in Local Search in Combinatorial Optimization, ed. E Aarts and J.K Lenstra, Princeton University Press, Princeton, United States, pp. 361-414
Anderson EJ and Philpott A 2003 'Estimation of Electricity Market Distribution Functions', Annals of Operations Research, vol.121:1-4, pp. 21-32
Anderson EJ and Philpott A 2002 'On supply function bidding in electricity markets' in Decision Making Under Uncertainty: Energy and Power, ed. C Greengard and A Ruszczynski, Springer-Verlag, New York, United States, pp. 115-133
Anderson EJ and Philpott A 2002 'Optimal offer construction in electricity markets', Mathematics of Operations Research, vol.27, pp. 82-100
Anderson EJ 2002 'Markov chain modeling of the solution surface in local search', Journal of the Operational Research Society, vol.53:6, pp. 630-636
Anderson EJ and Philpott A 2002 'Using supply functions for offering generation into an electricity market', Operations Research, vol.50, pp. 477-489
Anderson EJ and Xu H 2002 'Necessary and sufficient conditions for optimal offers in electricity markets', SIAM Journal on Control and Optimization, vol.41:4, pp. 1212-1228
Anderson EJ and Potts C 2002 'On-line scheduling of a single machine to minimize total weighted completion time', Proceedings from the 13th ACM-SIAM Symposium on Discrete Algorithms, San Francisco, United States, 1st January 2002-31st December 2002
Anderson EJ and Cau T 2002 'A co-evolutionary approach to modeling the behaviour of participants in competitive electricity markets', Proceedings from the 2002 IEEE PES Summer Meeting, 1st January 2002-31st December 2002
Anderson EJ and Ferris M 2001 'A direct search algorithm for optimization with noisy function evaluations', SIAM Journal of Optimization, vol.11, pp. 837-857
Anderson EJ and Fekete S 2001 'Two-dimensional rendezvous search', Operations Research, vol.49, pp. 107-118
Anderson EJ, Goberna M and Lopez M 2001 'Simplex-like trajectories on quasi-polyhedral convex sets', Mathematics of Operations Research, vol.26, pp. 147-162
Anderson EJ, Goberna M and Lopez M 1998 'Locally polyhedral linear inequality systems', Linear Algebra and its Applications, vol.270, pp. 231-253
Anderson EJ and Fekete S 1998 'Symmetric rendezvous on the plane', Proceedings from the 14th Annual ACM Meeting on Computational Geometry, 1st January 1998-31st December 1998
Anderson EJ, Glass C and Potts C 1997 'Local search in combinatorial optimization: Machine Scheduling' in Local Search in Combinatorial Optimization, John Wiley and Sons, Chichester, United States
Anderson EJ 1997 'Intelligent scheduling systems in manufacturing' in Manufacturing Information Systems Research: Implementation in Hong Kong, ed. W.C Chung, Department of Manufacturing Engineering, Hong Kong Polytechnic University, Hong Kong, (China)
Anderson EJ 1996 'Mechanisms for local search', European Journal of Operational Research, vol.88, pp. 139-151
Anderson EJ and Pullan M 1996 'Purification for Separated Continuous Linear Programs', Mathematical Methods of Operations Research, vol.43, pp. 9-33
Anderson EJ and Al-Jamal K 1995 'Hydraulic network simplification', ASCE Journal of Water Resource Planning and Management, vol.121, pp. 235-240
Anderson EJ and Jong M 1995 'The setting of shelf heights and the distribution of box sizes in two-dimensional shelf packing', International Transactions in Operational Research, vol.2, pp. 181-186
Anderson EJ and Essegaier S 1995 'Rendezvous search on the line with indistinguishable players', SIAM Journal on Control and Optimization, vol.33, pp. 1637-1642
Anderson EJ 1994 'The Management of Manufacturing: Models and Analysis', Addison-Wesley, Wokingham, United Kingdom
Anderson EJ and Philpott A 1994 'Optimization of flows in networks over time' in Probability, Statistics and Optimization: A Tribute to Peter Whittle, ed. F.P Kelly, John Wiley and Sons, Chichester, United Kingdom, pp. 369-382
Anderson EJ and Philpott A 1994 'On the solutions of a class of continuous linear programs', SIAM Journal on Control and Optimization, vol.32:1289-1296
Anderson EJ and Ferris M 1994 'Genetic algorithms for combinatorial optimization: The assembly line balancing problem', ORSA Journal on Computing, vol.6, pp. 161-173
Anderson EJ and Anderson E 1993 'Optimal positioning of safety stocks in MRP', International Journal of Production Research, vol.31, pp. 1797-1814
Anderson EJ and Aramendia M 1993 'The continuous linear complementarity problem', Journal of Optimization Theory and Applications, vol.77, pp. 233-256
Anderson EJ and Cheah BS 1993 'Capacitated lot-sizing with minimum batch sizes and setup times', International Journal of Production Economics, vol.30-31, pp. 137-152
Anderson EJ and Aramendia M 1992 'A linear programming approach to the search game on a network with mobile hider', SIAM Journal on Control and Optimization, vol.30, pp. 675-694
Anderson EJ and Philpott A 1992 'Extreme points for linear optimal control problems with diagonal structure', SIAM Journal on Control and Optimization, vol.30:1385-1394
Mason A and Anderson EJ 1991 'Minimizing flow time on a single machine with job classes and setup times', Naval Research Logistics, vol.38:333-350
Anderson EJ and Wu S 1991 'The continuous complementarity problem', Optimization, vol.22, pp. 419-426
Anderson EJ and Cai X 1990 'A genetic algorithm for scheduling N independent jobs on M identical machines', Proceedings from the IASTED International Conference on Control and Modelling
Anderson EJ and Gal S 1990 'Search in a maze', Probability in the Engineering and Informational Sciences, vol.4, pp. 311-318
Anderson EJ and Nyirenda J 1990 'Two new rules to minimize tardiness in a job shop', International Journal of Production Research, vol.28, pp. 2277-2292
Anderson EJ and Aramendia M 1990 'The search game on a network with immobile hider', Networks, vol.20, pp. 817-844
Anderson EJ and Weber R 1990 'The rendezvous problem on discrete locations', Journal of Applied Probability, vol.28, pp. 839-851
Anderson EJ 1990 'Testing feasibility in a lot scheduling problem', Operations Research, vol.38, pp. 1079-1088
Anderson EJ and Ferris M 1990 'A genetic algorithm for the assembly line balancing problem', Proceedings from the Conference on Integer Programming and Combinatorial Optimization, University of Waterloo, Canada, 18th May 1990
Anderson EJ 1989 'Extreme points for continuous network programs with arc delays', Journal of Information and Optimization Sciences, vol.10, pp. 45-52
Anderson EJ 1989 'A note on the dynamic lot-size model with uncertainty in demand and supply processes', Management Science, vol.35:635-640
Anderson EJ and Lagodimos A 1989 'Service levels in single-stage MRP systems with demand uncertainty', Engineering Costs and Production Economics, vol.17:125-134
Anderson EJ and Philpott A 1989 'A continuous-time network simplex algorithm', Networks, vol.19, pp. 395-425
Anderson EJ and Lewis A 1989 'An extension of the simplex algorithm for semi-infinite linear programming', Mathematical Programming, vol.44, pp. 247-270
Anderson EJ, Lewis A and Wu S 1989 'The capacity problem', Optimization, vol.20, pp. 725-742
Anderson EJ and Ferris M 1989 'A genetic algorithm for the assembly line balancing problem', Proceedings from the Fourth SIAM Conference on Parallel Processing for Scientific Computing, Chicago, Illinois, United States, 1st - 31st December 1989
Anderson EJ and Nash P 1987 'Linear Programming in Infinite-Dimensional Spaces', Wiley, Chichester, United Kingdom
Anderson EJ and Aramendia M 1987 'An improvement step for a dynamic search game on a network', Proceedings from the 12th Symposium on Operations Research, Passau, Germany, 1st January 1987-31st December 1987
Anderson EJ and Philpott A 1985 'Infinite Programming, edited Symposium Proceedings', Springer-Verlag, Berlin, Germany
Anderson EJ 1985 'A new primal algorithm for semi-infinite linear programming', Infinite Programming, 1st January 1985-31st December 1985
Anderson EJ and Philpott A 1984 'Duality and an algorithm for a class of continuous transportation problems', Mathematics of Operations Research, vol.9, pp. 222-231
Anderson EJ 1984 'A corrected proof of a result of Grinold', Journal of Mathematical Analysis and its Applications, vol.99, pp. 123-126
Anderson EJ 1983 'A review of duality theory for linear programming over topological vector spaces', Journal of Mathematical Analysis and its Applications, vol.97, pp. 380-392
Anderson EJ, Nash P and Perold A 1983 'Some properties of a class of continuous linear programs', SIAM Journal on Control and Optimization, vol.21, pp. 258-265
Anderson EJ and Philpott A 1983 'An algorithm for a continuous version of the assignment problem', Proceedings from the 2nd International Symposium on Semi-Infinite Programming, Berlin, Germany, 1st January 1983-31st December 1983
Anderson EJ, Nash P and Philpott A 1982 'A class of continuous network flow problems', Mathematics of Operations Research, vol.7, pp. 501-514
Anderson EJ 1982 'A counterexample to a conjecture on optimal list ordering', Journal of Applied Probability, vol.19, pp. 730-732
Anderson EJ and Philpott A 1982 'Algorithms for some simple infinite dimensional linear programs', Proceedings from the 10th IFIP Conference on Optimization Techniques, Berlin, Germany, 1st January 1982-31st December 1982
Anderson EJ 1981 'Mazes: search games on unknown networks', Networks, vol.11, pp. 393-397
Anderson EJ 1981 'A new continuous model for job-shop scheduling', International Journal of Systems Science, vol.12, pp. 1469-1475
Anderson EJ 1980 'Basic solutions and a simplex method for a class of continuous linear programs', Proceedings from the 9th IFIP Conference on Optimization Techniques, Berlin, Germany, 1st January 1980-31st December 1980
2016 - 2019
- Robust optimization under uncertainty with limited data; Anderson E, Philpott A; Royal Society of New Zealand/Marsden Fund Grant.
2011 - 2014
- Competitive supplier bidding in supply chains; Anderson E; Australian Research Council (ARC)/Discovery Projects (DP).
Professor Eddie Anderson began his research career by studying scheduling theory and also the modelling of optimization problems in which the decision variable is a function: these are infinite dimensional optimization problems.
More recently Eddie has focussed on the competitive interaction between firms in a supply chain context. If the number of firms is small (an oligopoly), then game theory gives some guidance as to what will happen. There are applications in many areas, but he has a particular interest in what happens in wholesale electricity markets. The balance between supply (the generators) and demand (the retailers) will determine the final price, but who will make money and how much?
An interesting aspect of wholesale electricity markets is that bids consist of a whole schedule of prices and quantities rather than just a single price or a single quantity. This makes it important to analyse optimal bidding (and also equilibria) when the players have to decide on a whole supply function. In a series of paper from 2002 to 2013 Eddie Anderson showed how to analyse markets in which participants make supply function offers. Much of this work has been joint with Professor Andy Philpott from the University of Auckland.
In all market places there is uncertainty about future prices, and we cannot understand the competition occurring in electricity markets without understanding and modelling this uncertainty. A big part of Eddie’s research is concerned with models that include a stochastic element. When outcomes are uncertain it is no longer enough to simply assume that everyone maximises the profit they expect to make. Instead firms are guided by the need to avoid taking on too much risk. In many markets, including electricity, firms limit their risk by buying or selling financial derivatives. We would like to know the impact of this on firm profits.
So answering questions about competition forces us to consider risk and uncertainty at the same time. Eddie has a number of papers (and a book) on risk: looking at how individuals and firms can make good decisions when there are risks attached to their actions.
The increasing use of renewables and the possibility of widespread electric vehicle usage in the future is changing the way that the electricity grid operates and providing many challenges. Eddie has expertise in electricity trading issues and these are intimately connected with the structural changes taking place in the electricity supply system: solutions need to account for both engineering and financial realities.
Eddie Anderson’s work in risk management has recently led to a new research project on understanding the risk decisions faced by farmers. Decisions are made that are both operational (e.g. the amount of fertiliser to apply) and also financial (taking out insurance or selling crops in the futures market). The current work focusses particularly on cereal crops. Taking a supply chain view of risk in an agricultural context holds the potential for significant improvements.
Recent Units Taught
EMBA6003 Integrated Management
QBUS2330 Operations Management
QBUS6820 Business Risk Management
SMBA6110 Operations Management