2016 INFORMS Annual Meeting Program

TA54

INFORMS Nashville – 2016

TA54 Music Row 2- Omni Service Science in Electricity Supply Sponsored: Service Science Sponsored Session

rather than the commonly used item fill rate. With the proposed models, companies have the ability to arrange the inventory in a way to meet customer segmentation strategy, to evaluate the tradeoff of two order-based measures and profitability, and to simulate the impact of different levels of inventory investment. 3 - A Partially Observed Inventory Control Problem Satya Sarvani Malladi, PhD Student, Georgia Institute of Technology, 2209 Briarcliff Rd NE, Apt 17, Atlanta, GA, 30329, United States, mss@gatech.edu, Alan Erera, Chelsea C. White We consider the inventory control problem with backlogging and partially observed discrete demands. We prove the optimality of a myopic policy under a key assumption. We present upper and lower bounds on the optimal expected cost and a bound on the difference between the bounds. 4 - Dynamic Inventory Management Of Hybrid Manufacturing/Remanufacturing Systems With Different Lead Times Tong Wang, PhD Student, The Chinese University of Hong Kong, In this paper, we consider an inventory management problem where a firm replenishes its inventory from both manufacturing and remanufacturing processes in finite periods. Production lead time for manufacturing is different from that for remanufacturing. Besides the complete characterization of the optimal replenishment policy, we provide some managerial insights on results as well. 5 - Inventory Management Under Labor Constraints On Restocking Naser Nikandish, California State University Fullerton, 800 N State College Blvd, Anaheim, CA, 92806, United States, nnikandish@fullerton.edu, Lawrence W Robinson we present a linear programming model for determining inventory replenishment policies under limited restocking labor. We use this model to solve the restocking problem facing a specific European supermarket. We discuss three inventory replenishment policies and report impact of limiting labor on retailer’s profitability. We also develop a Lagrangian Relaxation based algorithm for finding inventory replenishment policies under one of these policies. TA56 Music Row 4- Omni Economics of Information Technology and Social Media Sponsored: EBusiness Sponsored Session Chair: Liangfei Qiu, Gainesville, FL, United States, liangfei.qiu@warrington.ufl.edu 1 - Sponsored Data: Smarter Data Pricing In The Age Of Data Cap Xiaowei Mei, University of Florida, xmei@ufl.edu We investigate a recent phenomenon whereby network service providers are encouraging content providers to sponsor data for consumers. We analyze this phenomenon using game theory within a setting of one monopoly mobile network operator (MNO) and two competing content providers (CPs). Consumers are heterogeneous in both data usage and in their preference for the CPs. We find the optimal pricing scheme for MNO is a two-part tariff without any data caps. The CPs are in a Prisoner’s Dilemma regarding sponsored data in the sense that they would prefer not to subsidize the consumers’ data consumption but doing so unilaterally would put them in a relatively inferior position. 2 - Please Share! Online Word Of Mouth And Charitable Crowdfunding 511D William M Engineering Building, Hong Kong, twang@se.cuhk.edu.hk, Xiting Gong, Xiuli Chao While online WOM is commonly used to share information about crowdfunding campaigns, there is hitherto limited understanding as to whether or how this information sharing affect individuals’ contribution behavior or the outcome of crowdfunding campaigns. In this study, using a unique dataset from 590 crowdfunding campaigns observed over 12 days, we examine to what extent, and how quickly online WOM affect the rate of contributions. In addition, we explore the effect of different phases of fundraising (over time or as they approach their target goals) and of the coverage of the campaigns in major online news websites. Mahdi Moqri, University of Florida, Gainesville, FL, United States, mahdi.moqri@warrington.ufl.edu

Chair: Zhi Zhou, Argonne National Laboratory, Energy Systems Division, Argonne, IL, 60439, United States, zzhou@anl.gov 1 - Guided Particle Swarm Optimizer For Transactive Operation Of Interconnected Micro-grids Yang Chen, University of Illinois at Chicago, Chicago, IL, 60607, United States, ychen429@uic.edu, Mengqi Hu Existing research has demonstrated that micro-grid clusters can freely share energy to achieve more cost savings. However, few solution approaches are developed to realize transactive operation for micro-grid clusters, not to mention large scale application. To this end, we develop a scalable distributed decision approach to study the transcative operation of micro-grid clusters where a virtual transaction center is introduced to coordinate all the micro-grids using a particle swarm optimizer (PSO). The dual price of local transactive energy is employed to guide the convergence of PSO. The effectiveness of the proposed dual-price Wholesale regional electricity markets in the U.S. are managed by Independent System Operators (ISOs) through tools such as Security Constrained Economic Dispatch (SCED). The disconnection between the regional markets contradicts the interconnected nature of the corresponding regional power systems. This entails coordination between regional markets. This presentation describes a novel coordination method for the multi-area SCED problem by exchanging critical information of free variables and binding constraints. The method is also extended to solving general large-scale linear programs with demonstrated computational efficiency. 3 - Nuclear Plants Market Competitiveness With Flexible Operational Capability Zhi Zhou, Argonne National Laboratory, zzhou@anl.gov, Jesse D Jenkins, Audun Botterud The economic viability of nuclear energy is increasingly challenged in the U.S. deregulated electricity markets due to large availability of cheap natural gas and increased penetration of renewables. It is critical to improve the competitiveness of nuclear energy to maintain energy supply diversity. In this study, we investigate the economic impact of flexible operations of a nuclear plant on its profitability, considering reliability issues on both plant and reactor levels, under the context of a deregulated electricity market. Case study results on a utility scale system show that operational flexibility can not only increase a nuclear plant’s profit, but also have benefit to the whole system. Chair: Naser Nikandish, California State University Fullerton, 800 N State College Blvd, Anaheim, CA, 92806, United States, nnikandish@fullerton.edu 1 - A Queueing Service Problem With MDP In Steel Slab Yard Yanhe Jia, Student, Northeastern University, Heping Street, Shenyang,Liaoning, 110819, China, yhejia@126.com, Lixin Tang The paper analyzes a serving storage problem of slab yard in iron and steel enterprises. Slabs from a continuous casting stage are stored in a slab yard (as a buffer) for further processing in a hot rolling stage. The coming slabs well be carried by some servers-cranes, these slabs come randomly. In this paper, we consider the slab serving storage problem to minimize the service cost. We give a queueing model and propose a dynamic programming algorithm to present a staffing policy. 2 - Integrating Inventory Classification And Control Decisions To Maximize Order Fulfillment Measures Liu Yang, Assistant Professor, Purdue University, 3000 Technology Ave, New Albany, IN, 47150, United States, LYang@purdue.edu, Haitao Li, James F Campbell, Donald C. Sweeney This study presents a linear optimization model that integrates inventory classification and control decisions to maximize the order fulfillment performance, subject to inventory budget constraint and minimum profit requirement. The focus of the research is the order-based performance measures, guided PSO is demonstrated using a cluster of 256 micro-grids. 2 - Coordinated Multi-area Dispatch For Wholesale Electricity Markets Feng Zhao, ISO New England, Holyoke, MA, United States, fzhao@iso-ne.com, Dane Andrew Schiro, Eugene Litvinov TA55 Music Row 3- Omni Inventory Management III Contributed Session

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