2016 INFORMS Annual Meeting Program

WA56

INFORMS Nashville – 2016

WA57 Music Row 5- Omni Strategic Customer Behavior in Retail and Manufacturing Sponsored: Behavioral Operations Management Sponsored Session Chair: Pelin Pekgun, University of South Carolina, Columbia, SC, United States, Pelin.Pekgun@moore.sc.edu 1 - Punishment And Reward In a Cooperative Advertising Game In this paper, we investigate the counterfactual effects of punishment and reward decisions in an investment-pricing game. Specifically, we consider a dyadic channel where a manufacturer and a retailer first make investments to increase market base demand and then make sequential pricing decisions to sell to end consumers. We build a behavioral model with several relevant behavioral biases to study how firms pricing and profits are affected by the incorporated behavioral constructs. Experimental results confirm the behavioral model’s predictions. 2 - Consumer Stockpiling Behavior In A Changing Economy: Implications For Retail Inventory Management Xiaodan Pan, University of Maryland, College Park, MD, United States, xiaodan.pan@rhsmith.umd.edu, Benny Mantin, Martin E Dresner Assessing consumer stockpiling behavior is critical for managing promotions. Distinguishing between non-stockpilers and stockpilers we explore how the changing economy influences consumers’ purchasing behavior. While the consumption rates of both consumer segments increase (decrease) during expansion (contraction) period, we find that consumer stockpiling propensity is higher during contraction than during expansion period and that regional variations emerge. We discuss implications for inventory management. 3 - Behavioral Ordering And Competition Brent Moritz, Penn State University, University Park, PA, 16802, United States, bmoritz@psu.edu, Bernardo Quiroga, Anton Ovchinnikov We investigate the impact of behavioral ordering on profitability. Since most firms compete for customers, we compare the decisions of humans and a management science-driven competitor who places orders under three plausible policies. We evaluate performance when consumers are fully loyal and when they switch to the competitor with higher service levels. We show that the large differences in profits are primarily driven by suboptimal ordering of behavioral decision makers rather than the sophistication of their management-science-driven competitors. 4 - Using Capacity Allocation Policies For Truthful Forecast Sharing Minseok Park, University of South Carolina, 1520 Senate Street, Apt 127, Columbia, SC, 29201, United States, minseok.park@grad.moore.sc.edu, Pelin Pekgun, Pinar Keskinocak Through a behavioral study, we investigate customers’ strategic forecasting and ordering behavior under different allocation policies from their supplier. Our results suggest that rewarding forecast accuracy in allocating inventory can lead to improved forecast sharing, particularly when the supplier communicates this policy to the customers. WA58 Music Row 6- Omni Finance I Contributed Session Chair: Huawei Niu, Nanjing Audit University, School of Finance, Nanjing, 211815, China, niuhuawei@gmail.com 1 - Optimal Construction And Rebalancing Of Index-Tracking Portfolios Oliver Strub, University of Bern, Schuetzenmattstrasse 14, FM Index funds have become popular because they offer attractive risk-return profiles at low cost. The index-tracking problem consists of revising (rebalancing) the composition of the index fund’s tracking portfolio in response to new market information and cash changes such that the tracking accuracy of the index fund is maximized. We propose a novel formulation of the index-tracking problem as a mixed-integer linear program. In an empirical study, we demonstrate that the proposed formulation outperforms existing formulations in terms of tracking accuracy and running time. Yukun Zhao, Tsinghua University, Beijing, China, zhaoyk1989@gmail.com, Tony H Cui, Xiaobo Zhao Quantitative Methoden, Bern, 3012, Switzerland, oliver.strub@pqm.unibe.ch, Philipp Baumann

2 - A Rental Problem With Unreliable Products Mohammad Firouz, PhD Candidate, University of Alabama, 610 13th, Apt 19, Tuscaloosa, AL, 35401, United States, mfirouz@crimson.ua.edu, Burcu B Keskin, Linda Li We investigate a capacity planning problem of a rental system as an M/M/c/c queuing model with breakdowns and reneging, and derive the closed form state distributions for a special case. Our proposed algorithm finds the guaranteed global optimal for the non-concave profit function. Bounds are derived for the general case. Numerical experiments demonstrate the performance of our algorithm and some managerial insights. 3 - Shelf And Backroom Inventory Management Under Shelf Stock Dependent Demand Weili Xue, Southeast University, Hankou Road 22, Nanjing, China, wlxue1981@gmail.com, Ozgun Caliskan Demirag, Frank Y Chen, Yang Yi Under shelf-stock-level-dependent demand, we develop inventory control policies to determine the amount of inventory to maintain in the backroom and the amount to display on the retail shelf. 4 - Inventory Classification Versus Statistical Clustering For Solving Multi-echelon Inventory Grouping Problem Alireza Sheikhzadeh, University of Arkansas, 4207 Bell Engineering Center, Fayetteville, AR, 72701, United States, asheikhz@uark.edu, Manuel D Rossetti Inventory classification and statistical clustering methods are two distinct approaches that can be used for inventory grouping. In this research, we compare the performance of the inventory classification and statistical clustering methods in the context of the multi-echelon stocking policy problem. Numerical experiments indicate there is a significant difference between these two methods, in terms of the service performance. We discuss the reasons why clustering is not an appropriate method for inventory grouping problem. 5 - Inventory Management Of Products With Irregular And Intermittent Demand Pattern Sepideh Alavi, University of Wisconsin Milwaukee, 1559 N Prospect Ave. Apt 309, Milwaukee, WI, 53202, United States, alavi@uwm.edu In this paper, we highlight the weakness of inventory turnover curve analysis proposed by Ballou (1981) in cases where products have intermittent demand pattern. The inventory management of a cookware manufacturer is studied in this research where planning for the stock of the products which do not have any demand in most of the months in a year or have lumpy demand, is important. We try to fit a gamma distribution to a set of fast- moving. We then will be able to estimate the base stock level for each item under study based on a periodic review inventory policy. WA56 Music Row 4- Omni Open Source & Online Communities Sponsored: EBusiness Sponsored Session Chair: Pratyush Sharma, University of Delaware, Newark, DE, United States, pnsharma@udel.edu 1 - Single Loop And Double Loop Learning: The Link Between Open Source Software Developer Motivation, Contribution Behavior And Turnover Intentions Shadi Janansefat, University of Pittsburgh, shadi.j@pitt.edu, Sherae Daniel In this study we examine the link between learning motivation, two kinds of learning that occur through OSS development (single- and double-loop learning), and their impact on developer contributions. We distinguish among the impact of learning, use-value and collaboration motivation on the two kinds of learning and on developers’ contributions and turnover intentions. We find that learning can be an intervening mechanism between motivation to work on a project, subsequent contributions and intentions to leave that project. 2 - Effective Selection Mechanisms In Open Innovation Vipul Aggarwal, University of Washington, Seattle, WA, United States, aggarv@uw.edu, Elina Hwang Open Innovation is proposed as an effective way to generate novel and innovative solutions to existing problems but it has been observed that the winning solutions offer only incremental improvement over the existing solutions. Using data from OpenIdeo.com and unsupervised learning algorithms, we aim to investigate the idea evaluation process in screening ideas from distant areas.

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