2015 Informs Annual Meeting

SD49

INFORMS Philadelphia – 2015

2 - Consumer Behavior in Pay-as-you-go Business Models Jose Guajardo, University of California Berkeley, 545 Student Services Bldg #1900, Berkeley, CA, 94720-1900, United States of America, jguajardo@berkeley.edu Pay-As-You-Go business models have become widely adopted for the diffusion of energy solutions in developing economies. In this research, we analyze consumer behavior in pay-as-you-go environments and discuss implications for firms operating in these novel markets. 3 - Price to Compete...with Many: How to Identify Price Competition in High Dimensional Space Jun Li, Assistant Professor, Ross School of Business, University of Michigan, 701 Tappan St, Ann Arbor, 48103, United States of America, junwli@umich.edu, Serguei Netessine, Sergei Koulayev We study price competition in markets with large (in magnitude of hundreds or thousands) number of potential competitors, using the hotel industry as a test bed. This research addresses two methodological challenges: simultaneity bias and high dimensionality. 4 - Measuring the Effectiveness of Self-service: An Empirical Investigation of Supermarket Self-checkout Marcelo Olivares, Assistant Professor, Universidad de Chile, Republica 701, Santiago, Chile, molivares@u.uchile.cl Using transactional data from a large supermarket chain, we study the impact of self-checkouts in customer purchases. We combine video analytics data with point-of-sale transactions to analyse how waiting time in checkouts affects consumer decisions on which lines to join, basket expenditures and visiting frequency. SD47 47-Room 104B, CC Topics in Remanufacturing and Consumer Product Returns Sponsor: Manufacturing & Service Oper Mgmt/Sustainable Operations Sponsored Session Chair: V. Daniel R. Guide, Jr., Mary Jean And Frank P. Smeal Chaired Professor Of Operations And Supply Chain Management, Pennsylvania State University, 480 Business Bldg., University Park, PA, 16802, United States of America, drg16@psu.edu 1 - Measuring the Value of Return Policies in Online Retailing Guangzhi Shang, Assistant Professor, Florida State University, College of Business, RBB354, Tallahassee, FL, 32306, United States of America, gshang@business.fsu.edu, Michael Galbreth, Mark Ferguson, Pelin Pekgun Lenient return policies are popular in the industry. However, how much consumers value such a policy is difficult to measure from firm’s perspective. We tackle this challenge and measure the value of return policies to consumers in the online retail context. 2 - False Failure Returns: An Experimental Investigation of Supply Chain Coordination Yue Cheng, Doctoral Student, The Pennsylvania State University, 460A Business Bldg, University Park, PA, 16802, United States of America, yuc190@smeal.psu.edu, Brent Moritz, V. Daniel R. Guide, Jr. To reduce false failure returns, prior research has proposed a target rebate contract to coordinate the closed-loop supply chain. We modify the model to account for the best response to a proposed contract. We conduct two experiments, and observe sub-optimal coordination caused by mid-point bias and inequality aversion. 3 - Product Acquisition Management – A Third Party Remanufacturer Perspective Akshay Mutha, Doctoral Student, The Pennsylvania State University, Business Bldg, University Park, PA, 16802, United States of America, axm536@smeal.psu.edu, Saurabh Bansal, V. Daniel R. Guide, Jr. We examine various acquisition strategies for a third party remanufacturer (3PR). We develop a model for the 3PR’s profit maximization problem and characterize the optimal solution. We derive the structural properties of the model. Using realistic data for a smartphone remanufacturer, we show that the hybrid acquisition strategy increases the profit by up to 12%.

4 - A Typology of Closed-loop Supply Chains with Remanufacturing V. Daniel R. Guide, Jr., Mary Jean And Frank P. Smeal Chaired Professor Of Operations And Supply Chain Management, Pennsylvania State University, 480 Business Bldg., University Park, PA, 16802, United States of America, drg16@psu.edu, James Abbey We present a typology of closed-loop supply chains with remanufacturing.

SD48 48-Room 105A, CC

Empirical Topics on OM/Finance Interface Sponsor: Manufacturing & Service Oper Mgmt/iFORM Sponsored Session Chair: S. Alex Yang, Assistant Professor, London Business School, Sussex Place, London, United Kingdom, sayang@london.edu 1 - Sourcing with Financing in an Unreliable Supply Chain: Should Buyers Offer Loans to Suppliers? Jing Wu, jwu7@chicagobooth.edu, S. Alex Yang, Chris Tang Two financing schemes related to sourcing from a financial constrained supplier are characterized and discussed. Choosing between purchase order financing or supply chain financing, the manufacturer balances its information advantage and the bank’s financing advantage. 2 - An Empirical Study of Liquidation Value for Retail Inventories Nathan Craig, Ohio State University, 2100 Neil Avenue, 630 Fisher Hall, Columbus, OH, 43210, United States of America, craig.186@osu.edu, Ananth Raman The liquidation value of a firm’s assets appears in models in operations management (e.g., the newsvendor) and finance (e.g., cost of debt). Yet relatively little is known about the liquidation process and its outcomes. To characterize liquidation values for retail inventories, we use proprietary data on liquidation outcomes for 70 retailers and $8B of inventory. We complement this with data from multiple sources to identify economic factors that significantly affect liquidation value. 3 - Size Distribution of Manufacturing Firms in India : Empirical Evidence and Theoretical Models Sridhar Seshadri, Professor, Indian School of Business, Faculty Housing, Gachibowli, Hyderabad, AP, 500032, India, sridhar_seshadri@isb.edu, Yangfang Zhou The dualism of the manufacturing sector in India resulting in employment concentration in small and large firms has puzzled researchers. We provide a possible explanation for the missing middle phenomenon using supply chain models and models of competition. We discuss the policy implications of our findings. 4 - Dynamic Discounting Nitish Jain, Assistant Professor, London Business School, Regents Park, London, United Kingdom, njain@london.edu, S. Alex Yang Using a proprietary dataset, we empirically investigate how firms behave on a dynamic discounting platform. SD49 49-Room 105B, CC Service Process Design Sponsor: Manufacturing & Service Oper Mgmt/Supply Chain Sponsored Session Chair: Mustafa Akan, Associate Professor, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA, 15213, United States of America, akan@andrew.cmu.edu 1 - Maintenance and Spare Part Optimization for Moving Assets Ayse Sena Eruguz, Eindhoven University of Technology, P.O. Box 513, Eindhoven, 5600 MB, Netherlands, a.s.eruguz@tue.nl, Tarkan Tan, Geert-jan Van Houtum We consider an integrated maintenance and spare part planning problem for a single critical component of a moving asset for which the degradation level is observable. Degradation level is a function of the system state, mostly dictated by where the moving asset physically is, e.g., in harbour, in transit, or in mission for a maritime application. Possible actions and their consequences are also dependent on the system state.

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