2016 INFORMS Annual Meeting Program

WB32

INFORMS Nashville – 2016

WB31 202C-MCC

2 - Improving Supplier Compliance Through Joint And Shared Audits With Collective Penalty Prashant Chintapalli, UCLA, Los Angeles, CA, United States, prashant.chintapalli.1@anderson.ucla.edu, Felipe Caro, Kumar Rajaram, Christopher S Tang Motivated by the Accord on Fire and Building Safety in Bangladesh we study the effectiveness of buyer consortiums in supply chains . Using a game-theoretic model, we show that while a consortium improves supplier compliance and buyers’ profits, it puts supplier at a disadvantage. We identify a few sufficient conditions for the existence of a Pareto improving transfer-payment mechanism that a buyer consortium can offer the supplier. 3 - Testing By Competitors In Enforcement Of Product Standards Terry Taylor, University of California Berkeley, Berkeley, CA, 94720, United States, taylor@haas.berkeley.edu, Erica Plambeck This paper explores a novel mechanism to encourage compliance with and identify violations of safety and environmental standards: Firms testing competitors’ products. WB30 202B-MCC Management of Critical Care Sponsored: Manufacturing & Service Oper Mgmt, Healthcare Operations Sponsored Session Chair: Vedat Verter, McGill University, Montreal, QC, Canada, vedat.verter@mcgill.ca Co-Chair: Michael Klein, McGill University, Montreal, QC, Canada michael.klein2@mail.mcgill.ca 1 - Specialist Care In Rural Hospitals: From Emergency Department Consultation To Inpatient Ward Discharge Michael G. Klein, McGill University, Montreal, QC, Canada, michael.klein2@mail.mcgill.ca, Vedat Verter, Hughie F. Fraser, Brian G. Moses Patients often wait in the Emergency Department for admission to inpatient wards, resulting in crowding and adverse health outcomes. In rural hospitals, Internal Medicine Specialists (Internists) take on a dual role as ICU physician and Internist on call. We study the workflow decisions of Internists at two hospitals in Nova Scotia, Canada. We propose a stochastic dynamic programming model to analyze current practice and identify strategies for improvement. 2 - Effects Of Admission And Discharge Delays On Intensive Care Unit Patient Outcomes Patients admitted to the ICU often endure excessive delays for bed assignment due to capacity shortages, and prolonged ICU boarding following receipt of care. Using 2 years of data for 2 academic hospitals, we estimate that each hour of admission delay increases in-hospital mortality by 4%. We also examine whether simultaneous ICU and ward occupancy surges affect length of stay. Unlike prior studies we find that service time (when critically ill patients are stabilized) is unaffected by occupancy, yet ICU boarding accelerates during periods of high ICU occupancy and slows when ward occupancy is high. We find no adverse effects of occupancy on ICU bouncebacks or 30-day readmissions. 3 - A Delay-differential Equation Model Of An Intensive Care Unit Eman Almehdawe, University of Regina, Regina, SK, Canada, Eman.Almehdawe@uregina.ca, Armann Ingolfsson We investigate a fluid approximation model of an intensive care unit, in which patients are discharged at an adjustable speed, which influences the proportion of patients that are readmitted after a delay. We formulate the model as a delay- differential equation. We study the transient and steady-state behavior of the system occupancy in four different regimes and we obtain conditions under which speedup reduces average occupancy. Elisa Long, Assistant Professor, UCLA Anderson School of Management, Los Angeles, CA, 90095, United States, elisa.long@anderson.ucla.edu, Kusum Mathews

Service Operations in a Modern Economy Sponsored: Manufacturing & Service Oper Mgmt,

Service Operations Sponsored Session Chair: Serguei Netessine, INSEAD, 1 Ayer Rajah Avenue, Singapore, 138676, Singapore, serguei.netessine@insead.edu 1 - Ethics, Bounded Rationality And Ip Sharing In Knowledge-based Outsourcing Manu Goyal, University of Utah, Salt Lake City, UT, United States, manu.goyal@eccles.utah.edu, Krishnan S Anand Our dynamic model of knowledge-based outsourcing integrates (i) its major impediments— incomplete contracts, moral hazard and adverse selection, and (ii) its major facilitators— ethics, IP sharing and reputations. We show that, under bounded rationality, an ethical firm can obtain strictly greater profits than a profit-maximizing firm unconstrained by ethics. We find a novel explanation, rooted in ethics, for IP sharing, which arises as a strategic imperative even when it lowers firms’ profits. Our results explain why (a) a commitment to ethics can boost profits, (b) IP sharing is widespread, and (c) knowledge-based outsourcing is booming despite several formidable impediments. 2 - Accurate Estimation Of Retail Store Traffic From People Counters To Achieve Better Conversion Anup Hanamant Walvekar, INSEAD, anup.walvekar@insead.edu Conversion rate is an important KPI for retail store manager that captures fraction of sales opportunities that store was able to capture. As group of customers seldom have multiple transactions, #groups of customers visiting the store is more appropriate measure of sales opportunities than #customers. #Groups of customers visiting the store is not readily available from traffic counters. In this paper, we model the customer arrival process. We derive five different estimators of #groups of customers using customer arrival data and analyse their performance in different traffic profiles. 3 - Mitigating Digital Discrimination With Reviews In The Sharing Economy: Field Evidence From Airbnb Dennis Zhang, Kellogg School of Management, Northwestern University, Evanston, CA, 60201, United States, zjj1990228@gmail.com, Jun Li, Ruomeng Cui This project studies how agents may discriminate each other based on demographic information in the sharing economies. We conduct several field experiments on the Airbnb platform to quantify the impact of such discrimination on the platform’s revenue and provide several recommendations to mitigate it. 4 - Impact Of Operational Risks In Financial Organizations Yuqian Xu, New York University, 44 West 4th Street, New York, NY, 10012, United States, lillian.xyq@gmail.com, Fangyun Tan, Serguei Netessine We analyze extensive data from a Chinese bank which contains information on operational risks in retail banking. We find that workload affects incidence of risks in this service setting.

WB32 203A-MCC

Risk Analysis II Contributed Session

Chair: David Menachof, Peter Thompson Chair in Port Logistics, The University of Hull, Logistics Institute, Hull University Business School, Kingston upon Hull, HU6 7RX, United Kingdom, d.menachof@hull.ac.uk 1 - Macroscopic Look At The Equity Market Abdullah Alshelahi, PhD Student, University of Michigan, 2410 Leslie Circle, Ann Arbor, MI, 48105, United States, shelahi@umich.edu, Romesh Saigal The aim of this research is to investigate the existence of sensors which may aid in the monitoring of Equity Markets. While the classical approach consists of studying the stock market following the evolution of individual stocks, we use a so-called macroscopic viewpoint by considering a global view of the equity markets. This way, we see the market within the context of the principles of mass and momentum conservation and the variables such as density, pressure, average velocity, etc. We can then define `sensors’ that can monitor some of these variables in the market. Finally, we propose a model that predicts and provides alerts in the case of abnormal events.

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