2016 INFORMS Annual Meeting Program

TB53

INFORMS Nashville – 2016

2 - Human Interaction With Recommendation Systems: On Bias And Exploration Sven Schmit, Stanford University, Stanford, CA, United States, schmit@stanford.edu, Ramesh Johari, Vijay Kamble, Carlos Riquelme More and more, recommendation systems assist users decision making. These systems rely on historical data to provide suggestions. Little attention has been paid to the interaction of humans and learning algorithms. We propose an explicit model for the interaction between users and recommendations provided by a platform. First, we show that this interaction leads to a bias in naive estimators due to selection effects. This bias leads to suboptimal outcomes. Second, agents’ heterogeneous preferences lead to sufficient exploration of alternatives. Both observations lead to new insights and practical advice. 3 - Uncertainty In Dynamic Matching With Application To Organ Exchange John Dickerson, Carnegie Mellon University, Pittsburgh, PA, United States, dickerson@cs.cmu.edu John Dickerson, University of Maryland, College Park, MD, United States, dickerson@cs.cmu.edu, Tuomas W Sandholm We address dynamic kidney exchange, an organized market where patients with end-stage renal failure swap willing but incompatible living donors. Specifically, we focus on two types of uncertainty found in dynamic matching applications like kidney exchange: probabilistic existence of edges in the current matching graph, and determining the “best” way to match now given uncertainty over the future. We discuss recent theoretical results and optimization methods to tackle this uncertainty, and provide experimental results from applying these methods to real-world data from the UNOS US-wide kidney exchange. 4 - Assortment Planning In School Choice Peng Shi, Massachusetts Institute of Technology (MIT), Cambridge, MA, pengshi@mit.edu School choice systems assign students to schools by giving each student a menu of options and eliciting their relative preferences among the options. Many such systems uses the Gale-Shapely Deferred Acceptance (DA) algorithm, which also take into account students’ priorities at each school. In previous literature, the menus and priorities are considered to be given. In this paper, we study how the school board can optimize the menus and priorities in order to maximum students’ expected utilities subject to a budget for school busing. We apply this to real data from Boston Public Schools. TB52 214-MCC Urban Transportation and Logistics in Public Sector OR I Sponsored: Public Sector OR Sponsored Session Chair: Sunghoon Chung, Binghamton University, The State University of New York, P.O. Box 6000, Binghamton, NY, 13902, United States, schung@binghamton.edu 1 - A Vehicle Routing Problem For CNG Trucks With Fueling Stations In this research, we consider a Vehicle Routing Problem (VRP) for Compressed Natural Gas (CNG). Due to the limited number of available fueling stations and small fuel tank capacity, CNG trucks call for special concerns with the refueling problem. We introduce a new Mixed Integer Programming (MIP) model with preprocessing and valid inequalities to solve the problem optimally, as well as a new hybrid heuristic method to solve the problem in large scale. Numerical experiments show the efficiency of our preprocessing and valid inequalities. We also draw some insights from the experiments. 2 - The Truck Line Vehicle Routing Problem Of A Hub-and-spoke Structure Based Parcel Carrier We handle a combined problem of trunk line vehicle routing and hub capacity planning for a real-word parcel carrier, which uses a hub-and-spoke structure of about 300 spokes and 11 hubs. Because of limited sorting capability, only ten category groups can be classified at a spoke. The classified groups then are delivered to an eligible hub, are sorted and delivered to appropriate spokes. It handles about four million parcels daily and delivers them within two days using 4500 eleven tones trucks. A solution approach minimizing the total transportation and hub operating cost is developed. Yihuan (Ethan) Shao, University of Southern California, Los Angeles, CA, United States, yihuansh@usc.edu, Maged M Dessouky Jaesang Park, Postech, Pohang, Korea, Republic of, rose7@postech.ac.kr, Byung-In Kim, Ho-mahn Kwak, Hyunjoon Kim, Jeongbin Kim

3 - Dynamic Bus Routing For Evacuation Xiaohang Zhu, University at Buffalo, 2514 Deer Lakes Dr, Amherst, NY, 14228, United States, xzhu8@buffalo.edu, Jee Eun Kang Bus-based evacuation serves carless population and helps reduce congestion during evacuations. This research develops a single level dynamic bus routing problem, that determines the optimal bus routing with respect to dynamics of traffic and congestion, that minimizes the total evacuation time experienced by all evacuees. The proposed model is built upon the linear programming formulation of the Cell Transmission Model (CTM).

TB53 Music Row 1- Omni

Innovations and Value Chain Management Sponsored: Technology, Innovation Management & Entrepreneurship Sponsored Session Chair: Ying-Ju Chen, HKUST Business School, Dept. of ISOM, HKUST, Clear Water Bay, Kowloon, Hong Kong, 999077, Hong Kong, imchen@ust.hk Co-Chair: Shihong Xiao, HKUST, Dept. of IELM, HKUST, Clear Water Bay, Kowloon, Hong Kong, 999077, Hong Kong, sxiaoab@connect.ust.hk 1 - Impact Of Forecasting Accuracy On Sharing Forecasts In Supply Chains Hyoduk Shin, University of California - San Diego, hdshin@ucsd.edu We investigate the role of accuracy information of demand forecasts on sharing forecasts within the supply chain between the downstream retailer and the upstream supplier. We demonstrate how the uncertainty on the forecast accuracy can help or hurt the ability to share demand forecasts. 2 - Supply Chain Contracts With Boundedly Rational Retailers Behrooz Pourghannad, University of Minnesota, Minneapolis, MN, United States, behrooz.pourghannad@gmail.com, Guangwen Kong, Tony H Cui We study supply chain contracts with consideration of information sharing and bounded rationality. We examine a dyadic supply chain where a supplier with more accurate demand information sells products to a bounded rational retailer. The research suggests that the supplier can be better-off by using a linear pricing contract than adopting a buy-back contract. 3 - Milking The Quality Test: Improving The Milk Supply Chain Under Competing Collection Intermediaries Liying Mu, University of Delaware, muliying@udel.edu, Milind Dawande, Xianjun Geng, Vijay Mookerjee We examine operational and incentive issues that conspire to reduce the quality of milk — via deliberate adulteration by milk farmers — under competing collection stations in developing countries. Two recommendations are provided to reduce the milk adulteration using minimal testing. Both solutions achieve a socially-beneficial equilibrium outcome: All the farmers provide high-quality milk and each competing station only conducts one mixed test and no individual testing. 4 - 3d Printing Vs. Traditional Flexible Technology: Implication On Manufacturing Strategies Duo Shi, Washington University in Saint Louis, KH 401, Olin Business School, 1 Brookings Drive, St. Louis, MO, 63130, United States, dshi@wustl.edu, Lingxiu Dong, Fuqiang Zhang In this paper, we study a firm’s manufacturing strategies under two types of flexible technologies: traditional flexible technology and 3D printing. The firm adopts dedicated technology and one type of flexible technology, either the traditional one or 3D printing. It has to choose an assortment from a potential set of variants, assigns each variant to a production technology, and finally invests in resource capacities. We find that traditional flexible technology and 3D printing can have distinct technology assignment structures. Contrary to common wisdom, the adoption of traditional flexible technology can reduce product variety. 3D printing, however, always enhances product variety.

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