2015 Informs Annual Meeting

SD39

INFORMS Philadelphia – 2015

3 - Developing Adaptive Islamic Law BPS Models for Islamic Finance and Banking by Text Mining the Qurnian Munir Majdalawieh, Associate Professor, Zayed University, Academic City, Dubai, United Arab Emirates, munir.majdalawieh@zu.ac.ae, Farhi Marir, Ahmed Al-dawoody In this study we will attempt to develop a Quranic financial corpus and use computational and analytical approaches to mine the Quran (the Muslim holy book) and the Hadith (actions and words of the prophet Muhammad peace be upon him) to uncover hidden knowledge on Islamic financial business processes and controls. The knowledge acquired from this investigation will be translated into an IFBPs model to be adapted by financial institutions when moving to Islamic finance and banking. 4 - Randomized Matrix Algorithms in Parallel and Distributed Environments Jiyan Yang, Stanford University, 44 Olmsted Road, Stanford, CA, United States of America, jiyanyang12@gmail.com We first review recent work on developing and implementing random projection and random sampling algorithms for very large very overdetermined least squares regression problems in parallel and distributed environments. We evaluate the their performance on up to terabyte-sized data in existing distributed systems using Spark. In the second part of the talk, we discuss how randomized linear algebre can be used in low-rank factorization of large-scale matrix with applications in bioimaging. SD39 39-Room 100, CC Pricing and Consumer Behavior in Retail and Service Operations Cluster: Operations/Marketing Interface Invited Session Chair: Arvind Sainathan, Nanyang Business School, 50 Nanyang Avenue, Singapore, Singapore, asainathan@ntu.edu.sg 1 - Production Planning with Advance Demand Information using Real Options Geoffrey Chua, Assistant Professor, Nanyang Technological University, 50 Nanyang Avenue, S3-B2A-04, Singapore, Si, 639798, Singapore, GBACHUA@ntu.edu.sg, Shaoxiang Chen, Zhiguang Han We consider a newsvendor in a B2C setting who sells a real option in period 1 ahead of the spot market in period 2 and find the optimal production and option pricing decisions. We show that option selling is better than advance selling. We also find two benefits of option selling: revenue management and demand updating. For a market with two segments, we compare three policies: selling one option to the higher segment, selling one option to both segments, and selling one option to each segment. 2 - Optimal Promotion Strategy for a Service Firm with Delay Sensitive Customers Guangwen Kong, University of Minnesota, 111 Church Street SE, Minneapolis, MN, 55414, United States of America, gkong@umn.edu Online social advertising tools such as Groupon generate new business for service providers and at the same time generate new challenges. Discount-seeking customers may impose externalities on the system that could drive away regular customers. We analyze these trade-offs and devise recommendations as to when would Groupon promotions be beneficial. 3 - Stockout Recovery under Consignment: The Role of Inventory Ownership in Supply Chains Rui Yin, Associate Professor, Arizona State University, Dept of Supply Chain Management, W.P.Carey School of Business, Tempe, AZ, 85287, United States of America, Rui.Yin@asu.edu, Yan Dong, Kefeng Xu We examine how a supply chain firm may implement an incentive contract under inventory consignment to recover stockouts and to retain customers. We formulate principal-agent models to capture the strategic interactions in a supply chain and explore the impact of supply chain opportunisms on the value of inventory consignment.

4 - Prioritization and Price-plus-delay Competition with Self-selecting and Heterogeneous Customers Arvind Sainathan, Nanyang Business School, 50 Nanyang Avenue, Singapore, Singapore, asainathan@ntu.edu.sg In service operations, with the absence of severe capacity constraints, prioritization has been “taken for granted” and presumed to do better when customers are heterogeneous in their delay sensitivities. We show that it is not true when customers self-select. In particular, we identify two key novel aspects – sufficient customer heterogeneity and customer composition – that become crucial, due to self-selection and competition respectively, in determining the performance of prioritization.

SD40 40- Room 101, CC Behavioral Operations II Contributed Session

Chair: Bernard M Groen, Dr, Durham University, Durham Business School, Durham, DH1 5LB, United Kingdom, b.m.groen@durham.ac.uk 1 - Managerial Deviance in High-Volume Store Replenishment Decisions: Cognition vs. Computation Power Shivom Aggarwal, IE Business School, Instituto de Empresa, S.L., CIF: B823343, C/ Maria de Molina, 12 Bajo, Madrid, 28006, Spain, dr.shivom@gmail.com, Antti Tenhiala The behavior of deviating from recommendations of artificially intelligent systems is rife and often encouraged. Past research has found that the ordering behavior of managers is subjected to their incentives, but lacks investigation of its antecedents and consequences. Using longitudinal data from a multi-site implementation of an Automatic Store Replenishment (ASR) system in a retail chain, this study investigates the factors that explain the success of managerial decisions to deviate. 2 - Can Safe Drivers be Productive Too? Empirical Evidence from Long-Duration Truck Trips Debjit Roy, Associate Professor, Indian Institute of Management Road safety still remains a prime concern for public policy makers. Through empirical investigation, we attempt to understand the relationship between safety conscious drivers and their trip productivity for long route trips. 3 - A Behavioral Study of Service Recovery Process – Focusing on the Compensation Hyejeong Gwon, PhD Candidate, Korea University, 408 LG- POSCO Business bldg., Anam-Dong,Seongbuk-Gu, Seoul, Korea, Republic of, 11ku11@korea.ac.kr, Daeki Kim Even though a company provides best service, the company cannot satisfy all the customers and prevent all service failure. The proper service recovery, especially the proper compensation can determine the level of customer satisfaction. On this paper, we investigate the effect of compensation on customer satisfaction focusing on its several dimensions after service failure. 4 - Complex Organisational Integration – A Behavioural Approach Bernard M Groen, Dr, Durham University, Durham Business School, Durham, DH1 5LB, United Kingdom, b.m.groen@durham.ac.uk Understanding the psychological aspects which underpin any organisational change is considered to be increasingly vital in the 21st century. This paper focuses on the implicit and explicit behaviour and the possible ‘dissonance’ between what teams say, and the actual behaviour displayed. I will briefly evaluate the relative merits of explicit and implicit behavioural methods, before drawing out the main reasons and provide useful solutions to increase the likelihood of successful change. Ahmedabad, Vastrapur, Ahmedabad, 380015, India, debjit@iimahd.ernet.in, Rene De Koster, Jelle De Vries

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