2016 INFORMS Annual Meeting Program

TD30

INFORMS Nashville – 2016

TD28 201B-MCC Topics in Sustainability Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session Chair: Arzum E Akkas, Boston University, Cambridge, MA, United States, aakkas@bu.edu 1 - Design Of Sales Compensation Schemes To Reduce Product Waste Arzum Akkas, Boston University, aakkas@bu.edu, Sahoo Nachiketa

2 - Coopeting For Green Product Development Karthik Murali, University of Alabama, Tuscaloosa, kmurali@cba.ua.edu

We study the impact of collaboration between supply chain partners and coopetition between supply chains on the level of investment in green product design and development and its ensuing implications to society and the environment. We also address the role of policy makers in stimulating such partnerships between organizations. 3 - Designing Sustainable Products Under Co-production Technology Shouqiang Wang, Clemson University, 131D Sirrine Hall, Clemson, SC, 29634, United States, shouqiw@clemson.edu, Yen-Ting (Daniel) Lin, Haoying Sun We consider a firm who utilizes co-production technology to introduce a green product with raw material that would be otherwise discarded. Some consumers value resource savings achieved by green product while others do not. We examine impact of resource scarcity, technology feasibility, consumers’ greenness on firm’s profitability and environmental impact. TD30 202B-MCC Innovative Data-driven Analyses in Healthcare Research Sponsored: Manufacturing & Service Oper Mgmt, Healthcare Operations Sponsored Session Chair: Carri Chan, Columbia University, 3022 Broadway, Uris Hall 410, New York, NY, 10025, United States, cwchan@columbia.edu Co-Chair: Jose Zubizarreta, Columbia University, 3022 Broadway, 417 Uris Hall, New York, NY, 10025, United States, zubizarreta@columbia.edu 1 - Personalized Diabetes Management Using Electronic Medical Records Alexander M Weinstein, Massachusetts Institute of Technology, Cambridge, MA, United States, amw22@mit.edu, Dimitris Bertsimas, Nathan Kallus, Ying Zhuo Current clinical guidelines for managing type 2 diabetes do not differentiate based on patient-specific factors. We present a data-driven algorithm for personalized diabetes management using a k-nearest neighbor approach. Using electronic medical records for 10,806 type 2 diabetes patients from Boston Medical Center, we evaluated the effect of the algorithm’s recommendations on matched patient outcomes from unseen data. The personalized approach yielded substantial improvements in glycated hemoglobin outcomes relative to the standard of care. The algorithm’s evidence-based recommendations can be summarized for providers in an intuitive, interactive dashboard. 2 - A Template Matching Approach To Comparing Hospital Quality In An Integrated Health Care System Wenqi Hu, Columbia Business School, New York, NY, United States, whu17@gsb.columbia.edu, Carri Chan, Jose Zubizarreta, Gabriel Escobar There is a growing interest from healthcare providers and policymakers to better measure and improve quality of hospital care. Commonly used risk adjustment models can be inconsistent measures of hospital quality and do not enable a clear understanding of the potential impact of unobservable risk factors on hospital rankings. This work applies a new template matching approach to define a reference population over which 21 hospitals within an integrated healthcare system are compared. This approach enables more transparent comparisons than prior approaches. We further quantify the influence of hospital operational factors on patient outcomes for performance improvement considerations. 3 - A Room With A View: An Econometric Analysis Of How Facility Layout Impacts Care Provision In The Emergency Department Lesley Meng, Doctoral Candidate, The Wharton School, University of Pennsylvania, 3730 Walnut Street, Suite 500 JMHH, Philadelphia, PA, 19104, United States, lmeng@wharton.upenn.edu, Robert Batt, Christian Terwiesch The hospital emergency department (ED) has frequently been used to study the dynamics of service operations and how such operations adapt to fluctuations in workload. We study how the facility layout of ED patient rooms impacts nurse workflow decisions. Specifically, our dataset is comprised of infrared nurse location tracking data from a large urban teaching hospital over a study period of six consecutive months in 2013. In linking this to room occupancy patient data, we are able to investigate potential facility layout variables, such as distance from the nurses’ station, that impacts the patient’s length of stay in the ED through variation in the amount of nurse attention received.

We investigate sales-force compensation schemes that can alleviate product expiration driven by over-selling in retail supply chains. Using sales commission data from a consumer packaged goods manufacturer, we recommend parameters for a compensation scheme based on our structural model of sales-force selling behavior. 2 - Extended Warranties And Secondary Market Strategies Wayne Fu, Georgia Institute of Technology, Atlanta, GA, United States, Wayne.Fu@scheller.gatech.edu, Atalay Atasu, Necati Tereyagoglu We investigate the implications of extended warranties in a durable goods market from both producer and environmental perspectives. Considering a product subjected to failure, offering extended warranties helps an OEM increase the value-added of its products, but implies repair costs and cannibalization from its secondary market. In this context, we formulate a stylized durable goods model that explores the interaction between the OEM’s warranty offerings and buy-back programs (to reduce secondary market cannibalization). We find that the choice of warranty offering is surprising non-monotonic in product failure and that secondary market interference influences the choice significantly. 3 - Sustainable Urban Water Management Buket Avci, Singapore Management University, Singapore, Singapore, buketavci@smu.edu.sg, Onur Boyabatli Climate change, escalating costs and other risks are causing cities to face ever- increasing difficulties in efficiently managing scarcer and less reliable water resources. We develop a stylized analytical model that captures the salient features of urban water management by modeling different demand classes (domestic vs. industrial) and supply processes (rainwater catchment, reclaimed water and desalination). 4 - Re-manufacturability And Investment Planning Avinash Geda, University of Florida, 361B Stuzin Hall, Gainesville, FL, 32611, United States, avinashgeda@ufl.edu, Gulver Karamemis, Gulver Karamemis, Vashkar Ghosh, Asoo J Vakharia We consider a monopolist manufacturer who produces a single-branded product and uses a mix of virgin and recycled materials in its production. The manufacturer can invest in either upstream or downstream technologies or both to improve recyclability/re-manufacturability and to reduce recycling costs respectively. We investigate profit maximizing investment strategies in presence of green consumers. TD29 202A-MCC Issues in Sustainable Operations Sponsored: Manufacturing & Service Oper Mgmt, Sustainable Operations Sponsored Session Chair: Adem Orsdemir, University of California Riverside, 900 University Ave., Riverside, CA, CA 92521, United States, orsdemiradem@gmail.com 1 - Why And How Do Consumers Discount Remanufactured Products? James Duane Abbey, Texas A&M University, 4217 TAMU, College Station, TX, 77843-4217, United States, jabbey@mays.tamu.edu, Rainer Kleber, Gilvan Souza, Guido Voigt We empirically isolate the impact of quality concerns on consumers’ willingness to pay (WTP) and the likelihood to purchase remanufactured products. Perceived risk, in the form of quality defects and cosmetic defects, has a significant impact on WTP, even after controlling for the WTP for new products, and other attributes.

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