2016 INFORMS Annual Meeting Program

TC73

INFORMS Nashville – 2016

TC74 Legends B- Omni Optimization Methodology III Contributed Session

2 - Developing A Novel Service-part Classification Approach For Large-scale Multi-echelon Replenishment System Alireza Sheikhzadeh, PhD Candidate, University of Arkansas, 4207 Bell Engineering Center, Fayetteville, AR, 72701, United States, asheikhz@uark.edu, Manuel D Rossetti The purpose of this research is to create, analyze and test a new classification approach for large-scale multi-echelon service-part replenishment system. The classification approach is defined to address the need to provide the lowest penalty cost associated with grouping. In this research, we define the concept of artificial stocking policy (ASP) as a new classification criterion. We also propose a new partitioning approach which takes into the account the characteristics of the (aggregated) pseudo-items. 3 - How To Get The Conflict Out Of The Mineral Supply Chain Han Zhang, Student, Kelley School of Business, Indiana University Bloomington, IN, 47408, United States, hz8@indiana.edu, Goker Aydin, H. Sebastian Heese New legislation requires manufacturers to disclose their sources of “conflict minerals” - natural resources whose trade might finance conflicts. We study the effect of such interventions, using a model with mines, smelters, and manufacturers. We show that imposing penalties on manufacturers alone is not sufficient to eliminate conflict minerals from supply chains, and that an industrial alliance to pool audit costs among compliant manufacturers can be effective in increasing the equilibrium quantity traded of certified metal. 4 - Sourcing And Procurement Coordination In Multi-division Firms Fang Fang, California State University, LA, 1250 S Alhambra Circle, Apt 18, LA, CA, 33146, United States, f.fang@umiami.edu, Harihara Natarajan Large firm must coordinate multiple divisions’ procurement activities to leverage volume discounts from suppliers. Facing such a procurement coordination problem, we examine how a firm can design transfer prices to maximize firm- wide cost savings considering divisional off-contract buying. Our analysis of commonly-used transfer pricing rules shows interesting impacts on vendor selection, divisional participation, and gain allocation TC73 Legends A- Omni Operations Management III Contributed Session Chair: Sanchoy Das, New Jersey Institute of Technology, University Heights, Newark, NJ, 7102, United States, das@njit.edu 1 - Design Of Operational Policies To Reduce Boarding Time In Emergency Departments Cheng Zhu, McGill University, 701-801 Sherbrooke Est, Montreal, QC, H2L 0B7, Canada, cheng.zhu@mail.mcgill.ca, Beste Kucukyacizi In this research, we aim to reduce emergency department overcrowding by shortening waiting times for: i) for an admission by a consulting physician, ii) boarding to the inpatient ward. We consider patient flows in an open queueing network in the hospital, while the availability of inpatient beds in each ward is exogenous for physicians. Then, we focus on designing admission and boarding policies based on different possibility of given inpatient bed availability. 2 - Efficient Business Operations In A Poultry Firm Sanjeev K Bordoloi, University of St. Thomas, Opus College of Business, 1000 LaSalle Avenue, TMH 443, Minneapolis, MN, 55403, United States, sbordoloi@stthomas.edu, Jahnavi Indukuri, Indukuri Srinivas Varma In life-stock business, it is important to make operational decisions. This paper is an analysis of a poultry business in India. We conducted several optimization analyses on decision parameters such as life cycle of birds, break-even point, investment options, branding, and expansion. 3 - Advanced Orders Picking Heuristics For Internet Fulfillment Warehouses With And Explosive Storage Policy Sanchoy Das, New Jersey Institute of Technology, University Heights, Newark, NJ, 07102, United States, das@njit.edu, Sevilay Onal IFWs use an explosive storage policy whereby the same item is stored simultaneously in small lots in a large number of locations. Customer orders arrive continuously and the IFW objective is to minimize the fulfillment time. For a free picker the list of candidate picks is very large, and the solution space is described by the product of the number of pending orders and the active inventory locations. Decision variables are (i) which orders to serve next and (ii) which storage locations to fulfill the orders from. We present a narrow band selection heuristic which generate dynamic pick lists.

Chair: Mahamaya Mohanty, Research Scholar, IIT Delhi, Shaheed Jeet Singh Marg, New Delhi, 110016, India, mahamayamohanty@gmail.com 1 - Service Network Design With Heterogeneous Resource Constraints: Branch-and-price Approach Kai Wei, PhD, Tongji University, Siping Road, Shanghai, China, 0359weikai@tongji.edu.cn In this paper, we first present two kinds of different formulations for service network with heterogeneous asset constraints. The first is node arc formulation and the second is path cycle formulation. In the problem, we assume that each asset has a specific fixed cost and capacity and each arc can be used be several assets simultaneously. We introduce a branch and price algorithm to solve the path cycle formulation and use CPLEX to solve node arc formulation. The experimental results show our branch and price outperform CPLEX, especially in large benchmark instances. 2 - Selective Linearization For Multi-block Convex Optimization Yu Du, PhD Candidate, Rutgers University, 100 Rockafeller Road, Piscataway, NJ, 08854, United States, duyu@rutgers.edu, Andrzej Ruszczynski, Xiaodong Lin We consider the problem of minimizing a sum of several convex non-smooth functions. We introduce an algorithm called the selective linearization method, which iteratively linearizes all but one of the functions and employs simple proximal steps. The algorithm is a form of multiple operator splitting in which the order of processing partial functions is not fixed, but rather determined in the course of calculations. Global convergence is proved and estimates of the convergence rate are derived. Specifically, the number of iterations needed to achieve solution accuracy is of order O(ln(1/ )/ ). We also illustrate the operation of the algorithm on large scale structured regularization problems. 3 - Globally Convergent Probability-one Homotopies For Linear Programs With Complementarity Constraints Stephen C Billups, Associate Professor, University of Colorado Denver, Dept. of Mathematical & Statistical Sciences, Campus Box 170, P.O. Box 173364, Denver, CO, 80217-3364, United States, stephen.billups@ucdenver.edu Probability-one homotopy algorithms work by tracking the zero set of a specially constructed homotopy mapping from a known point to a solution to the problem at hand. To apply this idea to linear programs with complementarity constraints (LPCCs), we consider a family of relaxations of the LPCC and replace the complementarity constraints with nonlinear relaxations of NCP functions. Two different homotopy mappings have been developed based on these ideas. We show that these mappings have several desirable properties and we illustrate these properties using small numerical examples. 4 - Application Of Analytics In Modeling The Decision Making Perspectives Of Integrated Logistics In Supply Chain

Mahamaya Mohanty, Research Scholar, IIT Delhi, Shaheed Jeet Singh Marg, New Delhi, 110016, India, mahamayamohanty@gmail.com, Ravi Shankar

As sustainability is a growing concern in a supply chain, we aim to model integrated logistics with a formulation of Sustainable Index(SI). To obtain an optimal solution to rising problems of logistics in a company, the decision maker should take into consideration the reduction of energy consumption, carbon emission, and waste generation to achieve sustainability. Formulation of Sustainability Index is considered by taking into account minimization of cost, time, and risk and maximizing quality, flexibility and revenue.

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