2016 INFORMS Annual Meeting Program

MB57

INFORMS Nashville – 2016

MB55 Music Row 3- Omni Inventory Management I Contributed Session Chair: Jagtej S Bewli, Director, Product Management, WalmartLabs, 850 Cherry Avenue, San Bruno, CA, 94066, United States, jbewli@walmartlabs.com 1 - Inventory And Transportation Decisions For Two-echelon Closed- loop Supply Chain Under Emission Constraint Jian Li, PhD Candidate, Xi’an Jiaotong University, No.28 Westing Xianning Road, Xi’an, +86-029-710049, China, ljlcxwxz@stu.xjtu.edu.cn, Qin Su Closed-loop supply chain (CLSC) may cause more direct carbon emissions of used product due to the reverse logistics and remanufacturing. In this paper, we address the inventory and transportation management issue on CLSC system consisting of supplier, manufacturer and retailer under cap-and-trade mechanism, and develop a two-echelon system. Extra carbon permits can be taken as a kind of environment resource as well as product to be traded and circulate. Further, we consider decentralized decision-making with supplier, manufacturer and retailer being Stackelberg leader, respectively, and have a comparative analysis with centralized decision-making of CLSC through two numerical studies. 2 - An Inventory Problem With Substitution And Bayesian Estimation Ulku Gurler, Professor, Bilkent University, Department of Industrial Engineering, Ankara, 06800, Turkey, ulku@bilkent.edu.tr In this study we consider an inventory problem with two substitutable products. We use a bayesian approach to estimated the demand and substitution rates and investigate the impact of the estimation method on inventory replenishment. 3 - Managing Perishable Inventory Systems With Multiple Demand Classes Rui Chen, University of Toronto, 105 St George St, Toronto, ON, M5S 3E6, Canada, rui.chen@rotman.utoronto.ca Hossein Abouee Mehrizi, Opher Baron, Oded Berman We study a multi-period stochastic perishable inventory system with multiple demand classes that have different requirements on the age of acceptable products. At the end of each period, the firm can savage inventory of any age. An example is a food supplier selling products to retailers that have different market size or have different geographical locations. We characterize the structure of optimal ordering, allocation, and disposal policies. We examine the effectiveness of the optimal control and how to best try and improve the control of perishables. We also propose an effective and computationally-efficient heuristic,which is 5% away from the optimal. 4 - The Design Of A Responsive Vaccine Supply Chain By The Incorporation Of Production Capacity Into The Guaranteed Service Approach Stef Lemmens, KU Leuven, Naamsestraat 69 Box 3555, VAT BE 0419.052.173, Leuven, 3000, Belgium, stef.lemmens@kuleuven.be, Catherine Jenny Decouttere, Nico Vandaele, Mauro Bernuzzi, Amir Reichman Both literature and industrial evidence emphasize the importance of the design of a responsive vaccine supply chain as the manufacturing lead times are long and highly variable. We model the buffer exchange between supply chain responsiveness, multi-echelon inventory and production capacity by the incorporation of queuing networks into the guaranteed service approach. Furthermore, we apply our methodology to a real-life rotavirus vaccine supply chain. 5 - Portfolio Management Approach To Inventory Optimization Jagtej S Bewli, Director, Product Management, WalmartLabs, 850 Cherry Avenue, San Bruno, CA, 94066, United States, jbewli@walmartlabs.com Choosing the right inventory ‘investment’ for each SKU in the assortment can improve service levels while reducing overall inventory. However, in spite of significant advancement and research in inventory optimization techniques, inventory policies in industry still managed based on ABC classification of SKUs.Inventory recommendations from mathematically optimal inventory policies may not always line up with human intuition therefore educating the business user is key to driving adoption.

MB56 Music Row 4- Omni Firm Competitive Strategies Sponsored: EBusiness Sponsored Session Chair: Chao Ding, University of Hong Kong, KKL 807, Pok Fu Lam, Hong Kong, chao.ding@hku.hk 1 - Promotion Design In Free To Play Mobile Games Sean Raphael Marston, Western Kentucky University, sean.marston@wku.edu, Ismail Civelek, Yipeng Liu In-game purchases, virtual goods/promotion design for heterogeneous consumers and strong competition are key challenges for game providers. This paper addresses determination of optimal promotion offerings for a game provider in the presence of heterogeneous players and a competitor. 2 - Advertising Role Of Recommender Systems In Electronic Marketplaces: Is It A Boon Or A Bane For Competing Sellers? Lusi Li, University of Texas at Dallas, Lusi.Li@utdallas.edu This paper examines the intricate interaction between competing sellers’ advertising and pricing strategies in the presence of a recommender system in an electronic marketplace. 3 - Competition And Efficiency In Express Service Industry Yihong Hu, Assistant Professor, Tongji University, 1293, Siping Road, Tongji University, Shanghai, 200092, China, yhhu@tongji.edu.cn, Ruixia Shi We consider service firms competing for customers sensitive to price and congestion and operating through a platform which charges a transaction fee. We establish upper and lower bounds of efficiency loss. With linear inverse demand and homogeneous firms, the platform’s charge make the worst case increase from 1/4 to 9/16, additionally losing more than one half of social welfare compared to free competition. When heterogeneous, it raise the bound to over 9/16, depending on the largest gap between cost coefficients of firms and the maximum ratio of volume-to-investment. For concave inverse demand and homogeneous firms, the bound increases from 1/3 without the charge to 2/3 with the charge. 4 - The Centrality Of Ict In Network Structures Of Innovation And Impact On R&D Rajib L Saha, Assistant Professor, Indian School of Business, We document the centrality of Information and Communication Technology (ICT) industries in network structures of innovation and its subsequent impact on R&D processes and outcomes across diverse industries. We find strong evidence for the impact of technology centricity of an industry’s innovations, as measured by the industry’s position in the network relative to the ICT industries, on its R&D productivity, new product creations, and recombinant intensity. Performance volatility, spread and market returns of an industry also increase with the technology centricity of its innovations. MB57 Music Row 5- Omni Queues and Customer Behavior Sponsored: Behavioral Operations Management Sponsored Session Chair: Mirko Kremer, Frankfurt School of Finance and Management gGmbh, Sonnemannstrasse 9-11, Frankfurt, 60314, Germany, m.kremer@fs.de 1 - Last Place Aversion In Queues Ryan Buell, Assistant Professor, Harvard Business School, Morgan Hall 429, Boston, MA, 02163, United States, rbuell@hbs.edu Michael Norton, Jay Chakraborty Since customers dislike waiting, much of the existing queuing research concentrates on what’s taking place ahead of the customer in line (service rates, queue length, etc.). We examine whether what’s taking place behind the customer - specifically, whether they are last in line - influences their perceptions and behaviors. Through a combination of lab and field studies, we document how being in “last place” diminishes wait time satisfaction, and increases the probability of leaving the queue. We also test several interventions aimed at reducing last place aversion and improving queue performance. Room 6123, AC6, Level 1, Hyderabad, 500032, India, Rajib_Saha@isb.edu, Aditya Karanam, Deepa Mani

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