2016 INFORMS Annual Meeting Program

WD36

INFORMS Nashville – 2016

3 - Online Assortment Optimization When Customers Refine Their Search Zhichao Feng, The University of Texas at Dallas, Richardson, TX, 75080, United States, zxf140830@utdallas.edu, Dorothee Honhon, Shengqi Ye When shopping online, a consumer often searches a keyword and checks the products displayed by the retailer. In many cases, the retailer has numerous products matching the keyword, with different features and functionalities, but is only able to show a subset of them due to limited displaying space. The assortment shown by the retailer influences the consumer’s decision to buy or not. In addition, when the consumer is not familiar with the product category, the assortment may trigger interest in a specific product feature, leading the consumer to refine her search, and focus only on products with this feature. Taking this into consideration, we study the online retailer’s optimal assortment decision. 4 - Flexible Break Assignment Problem For Ground Handler Shift Scheduling Youngbum Hur, Graduate Research Assisstant, The University of Texas at Austin, 1 University Station C2200, United States, youngbum.hur@utexas.edu, Jonathan F Bard, Ferdinand Kiermaier, Markus Frey The purpose of this paper is to investigate the benefits that flexibility offers in daily shift scheduling. The different forms of flexibility considered include shift start times, the number of breaks, break lengths, and break placement. Four related mixed-integer programming models are developed and used to compare break scheduling in advance and in real-time for various shift and break profiles. Tests were performed using demand data for ground handlers at a major European airport. WD36 205B-MCC Payment Models in Healthcare Sponsored: Manufacturing & Service Oper Mgmt, Supply Chain Sponsored Session Chair: Hamed Mamani, University of Washington, Seattle, WA, United States, hmamani@uw.edu Co-Chair: Shima Nassiri, University of Washington, ISOM, Foster School of Business, Seattle, WA, 98195, United States, shiman@uw.edu 1 - The Impact Of Reimbursement Policy On Patient Welfare, Readmission Rate And Waiting Time In A Public Healthcare System: Fee-for-service Vs. Bundled Payment Yulan Wang, Hong Kong Polytechnic University, yulan.wang@polyu.edu.hk, Christopher S Tang, Pengfei Guo, Ming Zhao We examine two commonly used reimbursement schemes: Fee-For-Service (FFS) and Bundled Payment (BP) from aspects of congestion (waiting times patients incur) and service quality (measured by readmission rate). We consider a three- layer public health care system including a funder who decides the reimbursement payment, a representative health care provider who decides the service rate (affecting service quality) and patients who decide to join or balk based on their net utility. We determine equilibrium outcomes and find that, in general, BP scheme improves patient welfare and service quality but FFS scheme results in less congestion. Under certain conditions, the two are equally efficient. 2 - Bundled Payment Vs. Fee-for-service: Impact Of Payment Scheme On Performance Shima Nassiri, University of Washington, Seattle, WA, United States, shiman@uw.edu, Elodie Adida, Hamed Mamani Healthcare reimbursements in the US have been traditionally based upon a fee- for-service (FFS) scheme, providing incentives for high volume of care. The new healthcare legislation tests new payment models that remove such incentives, such as the bundled payment (BP) system. Our interest is in analyzing the effect of different payment schemes on outcomes such as the presence and extent of patient selection, the treatment intensity, the provider’s utility and financial risk, and the total system payoff. We design two payment systems, hybrid payment and stop-loss mechanisms, that alleviate the shortcomings of FFS and BP and may induce system optimum decisions in a complementary manner. 3 - Bundled Payment Implementation via Market Segmentation Ruben Proano, Rochester Institute of Technology, rpmeie@rit.edu This talk illustrates the opportunities of applying market segmentation and tiered pricing to the implementation of bundled payments in replacement of fee-for- service for the reimbursement of healthcare expenses. Relying on a cluster-based episode construcion approach, the study shows how market segmentation and tiered pricing can reduce the risks of over- and under- paying for claims facilitating the adoption ob bundled payment by providers and payers.

4 - Incentive Design For Coordination In Care Of Chronic Patients Sasa Zorc, INSEAD, Singapore, Singapore, sasa.zorc@insead.edu, Stephen E Chick, Sameer Hasija We consider contracting issues in care of chronic patients. The government contracts with several healthcare providers in effort to maximise public health minus the cost. We model the decision of whether to contract with individual providers or alliances of providers, as well as which contract type to use. We show that with risk neutral agents, first best can be achieved with both options by using outcomes adjusted capitation or per-patient contracts. We also examine adverse effects arising from fragmentation of care: free riding within an alliance and collusion between individual providers. We show that individual outcomes- adjusted capitation contracts perform best under these effects. WD37 205C-MCC Topics in Sustainable Operations and the Role of Information Sponsored: Manufacturing & Service Oper Mgmt, Sustainable Operations Sponsored Session Chair: Leon Valdes, Massachusetts Institute of Technology, 77 Massachusetts Ave, Cambridge, MA, 02139, United States, lvaldes@mit.edu 1 - To Recycle Or Not: An Analysis Of The Environmental And Financial Impact Of Recycling Hailong Cui, University of Southern California, Los Angeles, CA, United States, Hailong.Cui.2019@marshall.usc.edu, Greys Sosic We evaluate the impact of recyclability on the emissions through the products’ life cycle and derive conditions for reduction of long-run average emissions. We investigate the underlying costs imposed on the supply chain and on the society to understand optimal decisions for decentralized (manufacturer or government- driven recycling) and centralized cases. 2 - How Do You Pay Your Electricity Bill? Payment Methods And Energy Conservation Christian Blanco, University of California-Los Angeles, Los Angeles, CA, 90095, United States, cblanco@anderson.ucla.edu, Magali Delmas We explore whether different payment methods may make electricity cost more or less salient. We then look at whether the introduction of smart meters can complement different payment methods and lead to changes in electricity consumption. We explore this using data from the largest electric utility company in the US. 3 - Are Hazardous Substance Rankings Effective? An Empirical Investigation Of Changing Assessments Of The Relative Hazards Of Chemicals And Voluntary Emissions Reductions Wayne Fu, Georgia Institute of Technology, Atlanta, GA, 30308, United States, wayne.fu@scheller.gatech.edu, Basak Kalkanci, Ravi Subramanian Governmental organizations such as the ATSDR provide extensive information on potential hazards of industrial chemicals to public. We investigate the link between such information dissemination and voluntary environmental efforts of firms and the implications of firms’ operational characteristics on the extent and the nature of the efforts. Finding that increases in assessed hazard level are associated with greater reductions in emissions, we suggest that the effect of information dissemination is significant. We also find evidence that operational leanness may limit the ability of facilities to reduce emissions in response to increases in assessed levels of hazard. 4 - Investing In Supplier Social Responsibility And Supply Chain Visibility Leon Valdes, Massachusetts Institute of Technology, lvaldes@mit.edu, Tim Kraft, Yanchong Zheng We study a manufacturer’s decisions when the social responsibility (SR) performance of her supplier cannot be perfectly observed and where only the supplier can directly impact SR. However, the manufacturer can: (i) increase her visibility into the supplier’s performance; and (ii) invest in the supplier’s capabilities to improve SR. A third party may disclose SR information to consumers, affecting demand. Our results provide insights into the impact of supply chain visibility on the supplier’s and the manufacturer’s strategies. We identify conditions under which the manufacturer is more likely to invest in visibility and we show that higher visibility does not always translate into greater SR.

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