2016 INFORMS Annual Meeting Program

SA59

INFORMS Nashville – 2016

SA57 Music Row 5- Omni Topics in Behavioral Operations Management Sponsored: Behavioral Operations Management Sponsored Session Chair: Ruth Beer, Indiana University, Kelley School of Business, Bloomington, IN, United States, ruthbeer@indiana.edu 1 - An Experimental Investigation Of Managing Quality Through Monetary And Relational Incentives Andrew M. Davis, Cornell University, adavis@cornell.edu, Kyle Hyndman We investigate indirect and direct incentives for managing the quality of a product in a two-tier supply chain. In our study, a retailer pays a supplier for a product, where the supplier can choose to exert high effort, which is costly but guarantees high quality, or low effort, which does not assure high quality. We consider scenarios where the retailer pays the supplier a fixed fee, or a combination of a fixed fee and conditional bonus, which is only paid to the supplier when high quality is received. We evaluate these scenarios in both one-shot and repeated environments and find that different incentives can significantly influence the quality of a product. 2 - The Supplier’s Dilemma: Buyback Contracts In A Competitive Setting Anna Devlin, University of Alabama in Huntsville, agd0008@uah.edu This research studies the performance of buyback (BB) and wholesale price (WP) contracts when a single newsvendor retailer purchases products from two suppliers competing for retailer effort. We determine that a profit-maximizing retailer’s effort allocation differs by contract pair offered by the suppliers, impacting supplier profits and equilibrium decisions. If demand uncertainty is low the difference in retailer effort across contract pairs minimally impacts profits and both suppliers offer BB contracts in equilibrium. However if demand uncertainty is high this effort allocation disparity creates a “prisoner’s dilemma” for the suppliers and both will offer WP contracts in equilibrium. 3 - Stagnant Leader Or Fast Improver? The Impact Of Transparency On Consumers’ Purchase Behavior Yanchong Zheng, Massachusetts Institute of Technology, yanchong@mit.edu Ryan Buell, Shwetha Mariadassou We study how consumers’ purchase behavior may be influenced by a company’s information transparency in its sustainability performance. We consider interaction between transparency and two types of information: current performance level and changes in performance. Our results yield important insights about a company’s transparency strategy in the marketplace. 4 - How Negotiatons Improve Performance In The Buyback Contract Elena Katok, University of Texas at Dallas, 800 W. Campbell Rd., Jindal School of Management (SM30), Richardson, TX, 75080, United States, ekatok@utdallas.edu, Michael Becker-Peth, Ulrich Thonemann We conduct a lab experiment to analyze how negotiations affect performance of a buyback contract. We show that adding a negotiation phase in a human-human setting improves performance significantly if negotiation agreements are reached. These Agreements result in almost full SC efficiency (0.97) and the profit split is fairly equal (0.54 to 0.46). We analyze the underlying drivers of successful negotiations which are both, personal and procedural. SA58 Music Row 6- Omni Energy I Contributed Session Chair: Arnab Roy, PhD Student, University of Louisville, 2719 South 4th Street, Apt. #2, Louisville, KY, 40208, United States, arnab.roy@louisville.edu 1 - Modeling The North American NGL Market In A Low Oil And Gas Price Environment Robert Brooks, Founder, RBAC Inc, 14930 Ventura Boulevard, Suite 210, Sherman Oaks, CA, 91403, United States, rebrooks@rbac.com The last decade’s “shale gas revolution” recreated the US natural gas and oil industry. It also revitalized the natural gas liquids business and promised to do the same for petrochemicals. But runaway production combined with slowed demand growth has resulted in a collapse of prices for all of these commodities world- wide. How can one make rational predictions about the future of the North American NGL market under these conditions? NGL-NA is a model of the North American market for natural gas liquids. The presentation will describe the model and results from recently run scenarios.

2 - Fuel Procurement Strategy With Inventory Consideration For Electric Power Utilities Chung-Hsiao Wang, LG&E and KU, 102 Spruce Lane, Louisville, KY, 40207-1701, United States, chunghsiao@hotmail.com, K Jo Min In recent years, natural gas combined cycle power plants have started to replace aging and less efficient coal power plants. Furthermore, due to cheap natural gas prices, economic dispatching has resulted in high coal inventory levels. Under these circumstances, in this paper, we develop mathematical models for structured and analytical guidelines on fuel procurement strategies for a utility owning both natural gas and coal generation units. 3 - Modeling And Analysis Of Remote, Off-grid Microgrids Sreenath Chalil Madathil, Doctoral Candidate, Clemson University, 110 Freeman Hall, Clemson, SC, 29634, United States, schalil@g.clemson.edu, Emre Yamangil, Harsha Nagarajan, Arthur K Barnes, Russell Bent, Scott Backhaus, Scott J. Mason, Salman Mashayekh, Michael Stadler We develop a mixed-integer, quadratically-constrained quadratic program for minimizing total installation and operation costs of remote off-grid microgrids with renewable and non-renewable energy sources under N-1 contingencies and one day time horizon. We compare various relaxations for this NP-Hard problem and present efficient decomposition algorithms for our problem. We model the nonlinear efficiency curves associated with these devices using a piecewise linear approximations and demonstrate the efficiency of proposed relaxation and decomposition methods using benchmark test problems. 4 - An Empirical Study On A Demand Response Program With Battery Storage Systems Arnab Roy, PhD Student, University of Louisville, 2719 South 4th Demand response (DR) in smart grid aims to reduce peak load, thus the needs for ancillary services in generation. On the other hand, any DR programs must be implemented with incentives to ensure consumers’ active engagement. In this paper, we investigate the effects of the DR implementation measures by one utility company on the load consumption of approximately 300 homes. The DR measures include the introduction of an innovative residential rate structure, direct load control, installation of efficient heat pump water heaters, and reliable utility-grade power storage systems. SA59 Cumberland 1- Omni Electrification in Transportation Sponsored: Transportation Science & Logistics Sponsored Session Chair: Mohammad Esmaeil Khodayar, Southern Methodist University, 6425 Boaz Lane, Dallas, TX, 75205, United States, mkhodayar@smu.edu 1 - Network Design For In-motion Wireless Charging Of Electric Vehicles In Urban Areas We present a model to optimize the location and power capacity of in-motion electric charging stations. We formulate the problem as a MIP and we propose a Benders-decomposition-based algorithm to solve it efficiently. We present the computational results of testing the algorithm on large-scale grid networks. 2 - Deployment Of Stationary And Dynamic Charging Infrastructure For Electric Vehicles Along Traffic Corridors Zhibin Chen, University of Florida, Gainesville, FL, United States, zhibinchen@ufl.edu, Yafeng Yin, Wei Liu This paper optimizes a deployment plan of dynamic and stationary charging facilities along a traffic corridor to serve the charging need of electric vehicles with the minimum social cost. The deployment plan will specify the number of charging stations, the number of chargers installed at each station, the lengths of dynamic charging lanes, and charging prices of charging stations and lanes. Street, Apt. #2, Louisville, KY, 40208, United States, arnab.roy@louisville.edu, Prajwal Khadgi, Lihui Bai Mamdouh Mubarak, Southern Methodist University, mmubarak@smu.edu, Halit Uster, Khaled Abdelghany, Mohammad Esmaeil Khodayar

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