2016 INFORMS Annual Meeting Program

TA10

INFORMS Nashville – 2016

TA08 103A-MCC Collaborative Innovation and Project Supply Chain Management Interfaces Invited: Business Model Innovation Invited Session Co-Chair: Onesun Steve Yoo, University College London, School of Management, Gower Street, London, WC1E 6BT, United Kingdom, onesun.yoo@ucl.ac.uk 1 - Investment In Shared Suppliers Youngsoo Kim, University of Illinois, Champaign, IL, WC1E 6BT, United States, mailto:ykim180@illinois.edu, Anupam Agrawal, Dharma Kwon, Suresh Muthulingam Motivated by an auto maker’s supplier quality management, we study the investment time game of firms in a shared supplier when investment can spillover to the other. In our model, each firm decides when to invest by observing continuous flow of supplier performance with incomplete information on the type of supplier. We first characterize equilibria by a region of preemption and war of attrition. Then, we examine the interactive effects of spillover, competition, and learning on investment strategies and time to invest. We identify the simple conditions under which competition delays or hastens the first investment in a shared supplier. 2 - Project Management Contracts Under Information Asymmetry Ju Myung Song, Rutgers University, jumyung.song@rutgers.edu Collaboration and partnership are essential for development projects many industries. We develop game theoretical models to show how firms behave on behalf of their best interest in collaboration and how it affects the project performance under information asymmetry. 3 - On-demand Delivery Via On-demand Drivers Michael Wagner, University of Washington, mrwagner@uw.edu, Soraya Fatehi Controlling shipping costs has always been a challenge for most retailers. With the consumer trend towards more on-demand orders and the expectation of fast shipping times, some retailers have decided to crowdsource their deliveries (e.g., Amazon Flex, Uber Rush). This delivery method uses an on-demand work force to deliver orders. Retailers typically pay drivers hourly wages whereas couriers such as UPS charge retailers per package. The use of an on-demand crowd for logistics creates new challenges such as crowd availability, service level constraints, and liability. In this presentation, we evaluate the crowdsourcing delivery method and derive optimal strategies for firms. 4 - Managing Risks In Major Defense Acquisition Programs From The Supply Chain Perspective. Olena Rudna, Rutgers University, omr20@scarletmail.rutgers.edu The Major Defense Acquisition Programs (MDAP) cost overrun problem was on the high-profile issues list of the U.S. Government Accountability Office since 1990s. Drawing on organizational theory, this work develops a series of proposals explaining MDAP cost overrun from a supply chain management perspective. Using data mining techniques, we combined two independent publicly available data sources related to the MDAP performance and contracting activities over the past twenty years. Then we conducted a three-tier analysis—strategic, operational and tactical—to detect data patterns related to risks related to the MDAP project performance from the supply chain point of view. TA09 103B-MCC Panel Discussion: Open Challenges in Internet of Things & Agriculture Analytics Invited: Agricultural Analytics Invited Session Moderator: Robin Lougee, IBM Research, IBM TJ Watson Research Center, 1101 Kitchawan Road, Yorktown Heights, NY, 10598, United States, rlougee@us.ibm.com 1 - Panel Discussion: Open Challenges In Internet Of Things & Agriculture Analytics Robin Lougee, IBM Research, IBM TJ Watson Research Center, 1101 Kitchawan Road, Yorktown Heights, NY, 10598, United States, rlougee@us.ibm.com The Internet-of-Things is expected to enable a second Green Revolution in agriculture with the potential to feed and sustain the growing world population. What are the important problems, application areas, and future research Chair: Yao Zhao, Rutgers University, Newark, NJ, United States, yaozhao@andromeda.rutgers.edu

directions needed to realize the vision of digital agriculture? This panel will explore the state-of-the-art and discuss the open challenges for analytics and operations research experts. 2 - Panelist Joseph Byrum, Syngenta, des Moines, IA, 50235, United States, joseph.byrum@syngenta.com 3 - Panelist Melissa Moore, INFORMS, Catonsville, MD, 21228, United States, Melissa.Moore@informs.org

TA10 103C-MCC

Renewable Energy Systems and Grid Integration Sponsored: Energy, Natural Res & the Environment, Energy II Other Sponsored Session Chair: Alexandra M Newman, Colorado School of Mines, newman@mines.edu 1 - Optimization Of Stored Energy Dispatch For Concentrating Solar Power Systems Michael J Wagner, National Renewable Energy Laboratory, mike.wagner@nrel.gov 2 - Optimal Design Of Concentrating Solar Power Systems Will Hamilton, Colorado School of Mines, whamilton@mines.edu In 2011, the United States Department of Energy launched the SunShot Initiative, the mission of which is to make solar energy technologies more affordable and accessible to citizens by 2020. With the use of thermal storage devices, concentrated solar power (CSP) technologies store solar energy in the form of thermal energy which can be used to supply electrical power during hours of little to no solar resource. In order to make CSP systems competitive with current technologies, we optimize design to minimize system, operation, and maintenance costs for the lifetime of the plant, providing preliminary numerical results. 3 - ROC-ing The Grid: The Unintended Consequences Of Northern Ireland’s Renewable Obligation Credit Destenie Supreece Nock, University of Massachusetts - Amherst, Amherst, MA, 01002, United States, dnock@umass.edu, Erin Baker In 2005 Northern Ireland introduced the renewable obligation certificate (ROC) policy, which was designed to increase the levels of renewable generation in the country. While the ROC was successful in encouraging the uptake of renewable generation technology, the amount of small- and micro-generation incorporated into the power system was much larger than anticipated. We use this case study as an illustration of specific opportunities for IEOR research in power system reliability and cost optimization. We discuss reliability metrics useful for evaluating potential responses to Northern Ireland’s challenges. 4 - Siting And Sizing Of Merchant Energy Storage Yury Dvorkin, University of Washington, Seattle, WA, United States, dvorkin@uw.edu, Yury Dvorkin, New York University, New York, NY, United States, dvorkin@uw.edu, A high capital cost of battery energy storage systems (BESSs) raises concerns over whether merchant BESSs are economically viable within a market environment. This presentation will describe two multi-level optimization models that explicitly guarantee the profitability of merchant investment decisions on BESSs siting and sizing. The presentation will also demonstrate how these decisions are affected by a co-optimization with transmission expansion plans. Numerical simulations carried out on test-beds of the ISO New England and WECC systems demonstrate that considering the profitability of merchant BESSs also leads to improvements in market efficiency. Ricardo Fernandez-Blanco, Jean-Paul Watson, Cesar A Silva-Monroy, Cesar A Silva-Monroy, Hrvoje Pandzic, Daniel Kirschen

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