2016 INFORMS Annual Meeting Program

MC29

INFORMS Nashville – 2016

3 - Optimal Auctions With Restricted Allocations Ian Kash, Microsoft, iankash@microsoft.com We study the design of optimal auctions under restrictions on the set of allocations. In addition to allowing us to restrict to deterministic mechanisms, we can also indirectly model non-additive valuations. We prove a strong duality result, extending a result due to Daskalakis et al. [2015], that guarantees the existence of a certificate of optimality for optimal restricted mechanisms. As a corollary, we provide a new characterization of the allocations that the optimal mechanism may use. We find and certify optimal mechanisms for four settings where previous frameworks do not apply and provide new economic intuition about some of the tools that have previously been used to find optimal mechanisms. 4 - Sample Complexity Of Revenue Maximization In The Hierarchy Of Deterministic Combinatorial Auctions Designing revenue-maximizing combinatorial auctions (CAs) is elusive. It is typically assumed that the designer knows the prior distribution over valuations, which is unrealistic because the prior is doubly exponential. Sandholm and Likhodedov introduced automated mechanism design that takes as input samples from the prior, and searches for a high-revenue CA within rich auction classes. There was no formal characterization of the number of samples required to guarantee that the CA revenue on the samples is close to its revenue on the underlying prior. We fill that gap, providing tight sample complexity bounds over the hierarchy of deterministic CA classes, and uncover structural properties. Tuomas Sandholm, Carnegie Mellon University, sandholm@cs.cmu.edu, Nina Balcan, Ellen Vitercik MC27 201A-MCC Organizational Learning and Problem Solving Strategies in Service Organizations Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session Chair: Anita L Tucker, Brandeis, 415 South Street, MS 032, Waltham, MA, 02453-2728, United States, altucker@bu.edu 1 - Checklists In Aviation And Healthcare Roger E Bohn, University of California-San Diego, rbohn@ucsd.edu Checklists in health care are often motivated by citing their use in aviation. But aviation struggled with checklists and standardization for decades. Craft-based pilots were often better than pilots who used standard procedures. Combining the benefits of both centralized explicit knowledge and individual tacit knowledge is still not fully solved. Medicine will have similar tradeoffs, and needs a flexible and learning-centered approach to checklists and other procedural knowledge. 2 - The Moderating Role Of Organizational Context On Learning-by-doing Bradley R Staats, University of North Carolina at Chapel Hill, bstaats@unc.edu In this paper, we examine relatedness from a strategic perspective. We consider one aspect of strategic relatedness that is particularly salient at all levels of analysis: goals. In doing so, we argue that even where otherwise diverse activities are knowledge-related, if they are not goal-related, learning-by-doing is likely to suffer. Using data from the hospital industry our findings suggest that goal- relatedness is an important consideration when it comes to learning. Although goal-related teaching aids learning-by-doing in clinical care, we find that strong academic affiliations (and the research-oriented tasks and goals they bring with them) may detract from it. 3 - Impact Of Tightly-coupled Team Familiarity And Learning-curve Heterogeneity On Orthopedic Procedure Times Michael A Lapre, Vanderbilt University, michael.lapre@owen.vanderbilt.edu, David W Moore We study team familiarity and learning-curve heterogeneity in the context of orthopedic surgery times. We find that learning from team experience depends on familiarity between team members who have to closely coordinate their tasks. When we allow for learning-curve heterogeneity for individual and tightly- coupled team experience, organizational experience is no longer significant. This finding suggests that organizational experience could be a proxy for individuals and teams learning at different rates. 4 - Integration And Quality Performance In Hospitals Eitan Naveh, Technion – Israel Institute of Technology, Haifa, Israel, naveh@ie.technion.ac.il, Wiljeana Glover, Qing Li, Michael Gross While many studies suggest that integration is positively associated with improved quality of care, others assert that integration may not necessarily result in better quality of care. The inconsistent success of integration to improve performance is

not limited to healthcare operations, but in operations and engineering management in general. We suggest that this inconsistency exists due to the predominant view that does not consider that systems integration requires consideration of both technical and human components. We use the theory of Human Systems Integration (HSI) to explain how the technical component and the human component of a system interact to influence quality performance. MC28 201B-MCC New Supply Chain Inventory Problems Motivated by Practice Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session Chair: Jeannette Song, Duke University, NC, United States, jingsheng.song@duke.edu Co-Chair: Yue Zhang, Duke University, Durham, NC, United States, yueyue.zhang@duke.edu 1 - Online-retail Inventory Replenishment: A Dynamic Programming Approach Stephen C Graves, Massachusetts Institute of Technology, Cambridge, MA, United States, sgraves@mit.edu Annie I-An Chen An online-retail inventory system consists of fulfillment centers where items are stored and shipped. Demand can be satisfied by any fulfillment center carrying the item, but a system-wide stockout results in lost sales. Assuming myopic fulfillment and joint periodic review, we formulate the online-retail inventory replenishment problem as a dynamic program. We study the optimal solution structure and propose near-optimal heuristic policies of tractable complexity, including base-stock and constant-basestock hybrid policies, which can be found by simulation optimization methods. Numerical examples demonstrate that our approach outperforms the status-quo base-stock policy. 2 - Robust Inventory Allocation Under Process Flexibility He Wang, Massachusetts Institute of Technology, 77 Massachusetts We consider a hybrid strategy that combines process flexibility and inventory to help firms meet uncertain supply with uncertain demand. We propose a robust optimization framework to model this hybrid strategy, and show that the problem can be efficiently solved using a cutting-plane algorithm. We then demonstrate the benefit of this method in practical applications such as supply chain risk mitigation and production postponement. 3 - Stock Or Print? Impact Of 3D Printing On Critical Spare Parts Logistics Avenue, E40-130, Cambridge, MA, 02139, United States, hewang150@gmail.com, David Simchi-Levi, Yehua Wei MC29 202A-MCC Issues in Energy Efficiency and Renewable Energy Sponsored: Manufacturing & Service Oper Mgmt, Sustainable Operations Sponsored Session Chair: Mili Mehrotra, University Of Minnesota, 321 19th Ave South, Minneapolis, MN, 55455, United States, milim@umn.edu 1 - Operational Response To Climate Change: Do Profitable Carbon Abatement Opportunities Decrease Over Time? Christian Blanco, UCLA Anderson School of Management, Los Angeles, CA, United States, cblanco@anderson.ucla.edu Felipe Caro, Charles J Corbett We explore data collected by CDP (formerly the Carbon Disclosure Project) on over 11,000 projects implemented by 956 firms. We find that the average payback period is increasing by about one month for each reporting period, but less so for firms that pursue opportunities that are directly related to core company operations. Yue Zhang, Duke University, Durham, NC, United States, yueyue.zhang@duke.edu, Jing-Sheng Jeannette Song In this paper, we construct a general framework to analyze the impact of 3D printing in spare part sourcing. Our results provide guidance in how to partition the spare part service among an oversea supplier and a local 3D printer.

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