2016 INFORMS Annual Meeting Program

WE84

INFORMS Nashville – 2016

WE83 Broadway H- Omni Supply Chain, General Contributed Session

2 - Immediate And Long-term Benefits Of In-store Return Experience Necati Ertekin, Assistant Professor, Santa Clara University, 500 El Camino Real, Santa Clara, CA, 95053, United States, nertekin@scu.edu We study the association between in-store customer experiences during returns and immediate exchange/subsequent repurchase behaviors. Using transactional data and satisfaction survey responses from 7,921 customers at a jewelry retailer, we identify perceived product quality, customer-oriented selling, and time to return as the factors that may influence customer exchange and repurchase behaviors. 3 - Effects Of Assortment Size Announcements On Manufacturer Competition H. Sebastian Heese, EBS University, ISCM, Burgstr. 5, Oestrich-Winkel, 65375, Germany, sebastian.heese@ebs.edu, Victor Martinez de Albeniz We study the impact of retailer assortment strategies on manufacturer wholesale pricing. The size of an assortment affects both competition between manufacturers for inclusion in the assortment and competition between participating manufacturers for market share. We optimize retailer assortment strategies taking into account these two effects. Chair: Tommi Juhani Pajala, Aalto University School of Business, Runeberginkatu 22-24, Helsinki, 100, Finland, tommi.pajala@aalto.fi 1 - An Integrated Black Topsis And Grey Linear Programming Approach To Deal With Uncertainty And Confidence Level Of Decision Makers Hanif Malekpoor, PhD Student, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, United Kingdom, H.Malekpoor@uea.ac.uk In order to deal with uncertainty of Decision Makers (DMs) opinions in supplier selection, applying interval valued data is a popular method. However the level of confidence, DMs have about their judgments, is also significant. In addition the supplier’s information related to constraints of order allocation problem is not precise. In this research to overcome the two aforementioned problems we have developed an integrated approach for order allocation, using Black-TOPSIS (TOPSIS with interval numbers which their upper and lower bounds are also grey numbers) and multi objective grey linear programing to determine the best supplier and order quantity from each suppliers. 2 - A Multi-criteria Decision Making Model For Evaluating Alternatives Under Large And Distinct Decision Makers Anthony Afful-Dadzie, University of Ghana, P.O. Box LG 78, Legon, Accra, Ghana, atosarsah@gmail.com This study proposes a method for analyzing the evaluation and ranking problem of alternatives in the case where there are large number of distinct decision makers for each alternative. Relying on the underlying distribution to the evaluation data, this peculiar problem is transformed into the format of a typical MCDM problem for easier analysis and interpretation. A numerical example is presented to illustrate the richness and applicability of the problem. 3 - P-center And P-dispersion Problems: A Bi-criteria Analysis Golbarg Kazemi Tutunchi, Operations Research Specialist, SAS Institute, 100 SAS Campus Dr,, Cary, NC, 27513, United States, golbarg.tutunchi@sas.com, Yahya Fathi We consider the p-center and the p-dispersion problems in the context of a bi- criteria location analysis. We propose a mathematical programming model and a binary search procedure to obtain the corresponding non-dominated frontier. We further study the structure of the proposed IP model and propose a new family of valid inequalities to help solve this IP model more effectively. Through a limited computational experiment we demonstrate the effectiveness of the proposed procedure and the valid inequalities. 4 - Judgments Of Importance Revisited: What Do They Mean? Tommi Juhani Pajala, Aalto University School of Business, Runeberginkatu 22-24, Helsinki, 00100, Finland, tommi.pajala@aalto.fi, Pekka J Korhonen, Jyrki Wallenius In a MCDM problem, decision makers can often say that one criterion is more important than another. What has remained unclear is whether value function weights are somehow connected to these judgments of importance. A surprisingly common assumption is that a more important criterion will have a larger weight, as if weights and importance were closely related. We present experimental evidence that Goldstein’s (1990) idea of judgments of importance as impact is a better interpretation. Further, we show that if we wanted to interpret importances as weights, we would need to know the scale the decision maker has in her mind. Without that knowledge, considering importance in terms of weights is not feasible. WE82 Broadway G- Omni Multicriteria Decision II Contributed Session

Chair: Arda Yenipazarli, Assistant Professor of Operations Management, Georgia Southern University, 2224 College Of Business Administration, Department of Logistics & Supply Chain Management, Statesboro, GA, 30460, United States, ayenipazarli@georgiasouthern.edu 1 - Mechanism Design In Pet Bottle Recycling Auction Kazuaki Okubo, Assistant Professor, Saitama University, 255 Shimo-okubo, Sakura-ku, Saitama, 338-8570, Japan, okubo@dp.civil.saitama-u.ac.jp This study examines an efficient auction mechanism where firms bid for set- period contracts to recycle polyethylene terephthalate (PET) bottles in Japan. For the auctions, the Japanese municipalities estimate their PET bottle recycling amounts in contract period, and the recycling firms prepare bids to win the recycling contracts. I focus on a negative impact of the estimation error of the amounts on the firms’ bids and analyze an efficient mechanism with consideration of such uncertainty. I also examine the effect of asymmetric bidder size and the distance between the recycler’s location and the municipality on the performance of the auction. 2 - Sales Agents Incentive Contracts In Competing Supply Chains Samar K Mukhopadhyay, Professor, GSB SKK University, 53 Myeongnyung-dong 3-ga, Jongno-gu, Seoul, 110-745, Korea, Republic of, samar@skku.edu We investigate contracting and sales agent incentives in two competing supply chains, each consisting of one manufacturer and one sales agent. The two supply chains are identical, but may have different contract types. We use a non- cooperative game where, in the first stage, the manufacturers decide the contract types. In the next stage, the manufacturers offer contracts to their sales agents who engage in competition. We analyze the game for two different contract types - a single linear contract and a menu of linear contracts. We find conditions under which a given contract type is preferred. We also find how risk aversions and uncertainties affect the profits. 3 - Managing Speed And Price In Customer-intensive Services This paper investigates the optimal price and service rate in a customer-intensive service, where customers’ perceived service quality decreases in the service speed. Customers are assumed to be heterogeneous in terms of their reservation utility which is captured by a random variable and they will join the queue if their expected utility is greater than their reservation utility. The optimal service rate and price are derived under two classes of customers with different customer intensities. The results suggest that the optimal service rate and price depend on the customer intensity, customers’ reservation utility distribution and the potential market size. Chengzhang Li, Harbin Institute of Technology, No. 92 West b, Harbin, China, lcz_grown@163.com

WE84 Broadway J- Omni Logistics Contributed Session

Chair: Andrew Junfang Yu, Associate Professor, The University of Tennessee Knoxville, UT Space Institute, 411 B. H. Goethert Pkwy., MS 19, Tullahoma, TN, 37388-9700, United States, ajyu@utk.edu 1 - A Fix & Optimize Heuristic For Capacitated Foodgrain Inventory Multi-Modal Transportation Problem In Indian Public Distribution System Ajinkya Tanksale, Doctoral Student, Indian Institute of Technology Kharagpur, IIT Kharagpur, West Bengal, Kharagpur, 721302, India, ajinkya.tank@gmail.com, Jitendra Kumar Jha In this work, we study an integrated inventory and multi-modal transportation problem in a region-bound multi-facility supply chain, which is motivated from the case of foodgrain distribution in the Indian public distribution system. The problem is formulated as mixed integer programming problem and solved using fix-and-optimize heuristic with several new decomposition schemes and a greedy heuristic for initial solution. The effectiveness and efficiency of the proposed solution approach is supported by comprehensive computational experiments.

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