2016 INFORMS Annual Meeting Program

TA71

INFORMS Nashville – 2016

TA71 Electric- Omni

2 - Joint Pricing And Production Decisions With Yield Uncertainty And Downconversion Fen Lu, Huazhong University of Science and Technology, 1037 Luoyu Road,Hongshan District, Wuhan, China, Wuhan, 430074, China, lufen@hust.edu.cn We consider a firm who supplies two types of products: high-end and low-end. Because of the uncertainty in the production process, the yield rate of the high- end product is uncertain.The substandard high-end products caused by the yield uncertainty can be transformed into the low-end product with a certain cost. We characterize the optimal pricing and production decisions and develop an algorithm to compute the optimal solution. We also investigate the impact of the yield uncertainty on the firm’s performance, and how stability of market demand, emergent fulfillment costs and downconversion cost influence this effect. 3 - Supply Chain Strategies And International Tax Arbitrage Hung Tuan Do, Assistant Professor, University of Vermont, 55 Colchester Avenue, Burlington, VT, 05405, United States, hdo@uvm.edu, Masha Shunko, Andy A Tsay Our model and analysis demonstrate that the MNF’s preferences regarding the operating structures are not necessarily an obvious ordering based on the amount of risk and decision authority transferred to the division. We derive and analyze threshold values of the performance parameters that describe the main tradeoffs involved. 4 - Dynamic Substitution Policy For Selling Multiple Products Chengzhang Li, Purdue University, West Lafayette, IN, United States, li1392@purdue.edu, Qi Feng, J. George Shanthikumar We study a firm selling multiple substitutable products over a selling horizon. In each period, when the random demands materializes, the firm may choose one product to meet the demand for another at a cost. We design an efficient algorithm that delivers close-to-optimal performance. We also show that restricting substitutions between products with adjacent characteristics can yield a benefit close to allowing full substitution among all products. Moreover, with an efficient dynamic substitution policy, the value of optimizing initial stock level becomes negligible. 5 - Shipment Consolidation Under Different Delivery Date Options For E-tailing Tugce Vural, Smeal College of Business, Pennsylvania State University, Smeal College of Business Department of Supply Chain and Information Systems, 454 Business Building, University Park, PA, 16802, United States, tugcevural@psu.edu, Nesim K Erkip We consider a shipment consolidation problem for an e-retailer that provides two types of services. In regular service, the e-retailer guarantees a maximum delivery time to its customers, whereas in premium service customers receive their items in negligible time. The consolidation operation is analyzed under deterministic demand structure. With the objective of maximizing average profit, a non-linear program with linear constraints is devised. Decision variables are durations for satisfying different service combinations. The structure of optimal policy is derived by using KKT conditions. TA73 Legends A- Omni Operations Management I Contributed Session Chair: Jingqi Wang, The University of Hong Kong, room 806, K.K.Leung Building, The University of Hong Kong, Hong Kong, Hong Kong, jingqi@hku.hk 1 - Equilibria Of Decision Signalling Problem In A Time Sensitive Market Sheng Zhao, NUS, 14-255D UTwon Residence South Tower, Singapore, 138600, Singapore, zhaosheng@u.nus.edu A timely launch of new products is crucial for their success/failure.Time is a source of competitive advantage and time-based competition has been recognized as a key feature in different industries such as smartphones, video games, personal computers, automobiles etc. While releasing a product earlier is helpful from the marketing perspective because customers are usually time-sensitive, operational constraints, primarily due to limited production rate, imply that less inventory will be available for sale. We explore this trade-o both under monopoly and competition.

Vehicle Routing I Contributed Session Chair: Mehdi Behroozi, University of Southern California, 3120 Bagley Ave, Apt 5, Los Angeles, CA, 90034-2930, United States, behro040@umn.edu 1 - Optimal And Heuristic Models For School Bus Fleet Size Problem Jiayuan Zhang, Stony Brook University, 24 malvern lane, stony brook, NY, 11790, United States, jiayuan.zhang01@gmail.com, Herbert F. Lewis, Thomas Raymond Sexton, Sreekanth Mallikarjun We present a new algorithm to minimize the number of school buses that a district must own to serve morning and afternoon routes subject to constraints on school bell times and pickup and delivery time windows. We compare our results to those produced by known optimal and heuristic models. Our proposed heuristic algorithm produces very good solutions in reasonable time. 2 - Combined Maintenance And Routing Optimization For Large-scale Problems John Fontecha-García, Instructor, Universidad de los Andes, Cra 1 Este No 19A - 40, Bogotá, Colombia, We tackle the problem of planning and scheduling maintenance operations of a set of geographically distributed sites that are subject to non-deterministic failures. We extended a combined maintenance and routing optimization approach that is based on two components: a maintenance model that is used to determine the optimal time to serve a site; and an MIP-based split (route-first, cluster-second) procedure that routes the crews who conduct maintenance operations. We applied our method on a case study for the sewer system in the city of Bogotá. 4 - Simultaneous Production And Transportation Problem: A Case Of Additive Manufacturing Gourav Dwivedi, Doctoral Student, Indian Institute of Management, Indian Institute of Management, IIM Road, Off Sitapur Road, Lucknow, 226013, India, fpm14013@iiml.ac.in, Yogesh K Agarwal, Rajiv K Srivastava We present a new situation of simultaneous production and transportation problem arising in additive manufacturing (AM) application. A vehicle with AM machine produces parts while approaching the customers’ location, saving the production time while transporting. Thus, delivery time depends on the travel time and the production completion time. This presents a unique operational decision problem to optimize delivery routes under different decision settings. A mixed-integer linear programming formulation is presented to decide the sequence of deliveries for the minimum total trip time. Tighter formulation is demonstrated through valid inequalities and their effect on lower bounds. 5 - Geometric Partitioning And Robust Ad-hoc Network Design Mehdi Behroozi, University of Southern California, 3120 Bagley We present fast approximation algorithms for the problem of dividing a given convex geographic region into smaller sub-regions so as to distribute the workloads of a set of vehicles. Our objective is to partition the region in such a fashion as to ensure that vehicles are capable of communicating with one another under limited communication radii. We consider variations of this problem in which sub-regions are constrained to have equal area or be convex, and as a side consequence, our approach yields a factor 1.99 approximation algorithm for the continuous k-centers problem on a convex polygon. Ave, Apt 5, Los Angeles, CA, 90034-2930, United States, mehdi.behroozi@usc.edu, John Gunnar Carlsson, Xiang Li je.fontecha10@uniandes.edu.co, Raha Akhavan-Tabatabaei, Daniel Duque, Juan Pablo Rodríguez, Andres L Medaglia

TA72 Bass- Omni Supply Chain Mgt IX Contributed Session

Chair: Tugce Vural, Smeal College of Business, Pennsylvania State University, Smeal College of Business, 454 Business Building, University Park, PA, 16802, United States, tugcevural@psu.edu 1 - How Do Countries’ Direct Manufacturing Costs And Hidden Costs Affect Manufacturers’ Performance? An Empirical Study Zhexiong Tao, McGill University, 1001 Rue Sherbrooke O, Montreal, QC, H3A1G5, Canada, zhexiong.tao@mail.mcgill.ca In this study, we attempt to investigate the relationship between countries’ direct manufacturing costs and hidden costs and local manufacturers’ performance. A research model is proposed and then tested by an international dataset.

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