2016 INFORMS Annual Meeting Program

SB32

INFORMS Nashville – 2016

SB31 202C-MCC Empirical Research in Supply Networks Sponsored: Manufacturing & Service Oper Mgmt, iFORM Sponsored Session Chair: Vishal Gaur, Cornell University, 321 Sage Hall, Ithaca, NY, 14850, United States, vg77@cornell.edu Co-Chair: Yasin Alan, Vanderbilt University - Owen Graduate School of Management, 401 21st Avenue South, Nashville, TN, 37203, United States, yasin.alan@owen.vanderbilt.edu 1 - Evolution Of Supply Networks Nikolay Osadchiy, Emory University, nikolay.osadchiy@emory.edu, Vishal Gaur, Maximiliano Udenio Using a large panel of firm-level buyer-supplier relationships, we study evolution of supply networks over time. 2 - Inaccurate Durations And Supply Chain Disruptions William Schmidt, Cornell University, wschmidt@cornell.edu, Mili Mehrotra We use supply chain and production data from a division of a Fortune 500 multinational manufacturer to examine the operational performance impact of inaccurate supply chain disruption duration estimates. We find that such inaccuracies can materially increase the cost of the disruption. This effect (1) persists after controlling for the actual length of a disruption and (2) can occur regardless of whether the disruption duration is initially over-estimated or under- estimated. We identify several factors that contribute to the impact of inaccurate estimates. 3 - Using Delay Forecasting To Correct Airline Turn Time Misallocation Yannis Stamatopoulos, McCombs School of Business, Austin, TX, United States, yannis.stamos@mccombs.utexas.edu, Jun Li, Carlos Carvalho Achieving good on time performance (OTP) is a challenging task for airlines. At the center of this challenge is the tradeoff between utilization and resilience. For example, longer turn times increase network resilience by reducing propagated flight delay, but at the same time keep airplanes away from flying and generating revenues. In this work, using proprietary data from a large US airline, we examine how an airline can manage turn times smartly from a network perspective. We find evidence for a potential significant improvement in OTP without hurting revenues. 4 - Shock Propagation In Supply Chain Networks Jing Wu, University of Chicago, jwu7@chicagobooth.edu Firms do not exist in isolation but are linked to each other through supply chain relationships. How do firm-level information transmits in the supply chain networks empirically? In this talk, we show both average shock propagation as reflected in stock returns, and extreme shock propagation as reflected in credit default swaps. The results are supported by supply chain theory and also have practical value in investment.

3 - When The Bank Comes To You: Branch Network And Custsomer Multi-channel Banking Behavior Vibhanshu Abhishek, CMU, vibs@andrew.cmu.edu Beibei Li, Dan Geng Customers today increasingly interact with their banks using digital channels, lifting the necessity for banks to rethink the distribution of physical branches and customer behavior in a multi-channel environment. Using approximately 1.2M anonymized individual-level data from a large commercial bank in US over 6 years, our paper investigates the traditional channel - bank branches - and the impact of its network change (branch opening or closure) on customer multi- channel preferences and other banking behavior. SB30 202B-MCC Social and Environmental Considerations in Retailing Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session Chair: Xiajun Amy Pan, University of Florida, Gainesville, FL, United States, amy.pan@warrington.ufl.edu Co-Chair: Dorothee Honhon, University of Texas at Dallas, Richardson, TX, United States, dorothee.honhon@utdallas.edu 1 - Social Labeling: Leaderboard Or Threshold Policy? Xiajun Amy Pan, University of Florida, amy.pan@warrington.ufl.edu, Quan Zheng, Asoo Vakharia Labeling, as a way to certify corporate social performance, is widely adopted in practice. However, little attention has been paid to the endogenous choice of a labeling policy. Should the label be awarded to manufacturers based on absolute performance (threshold policy) or relative performance (leaderboard policy)? We address this question through a mechanism design perspective. Our findings are that an impact-motivated third-party organization should confer the label on the best manufacturer provided it meets a threshold. On the other hand, a profit- maximizing retailer should select a certain number of manufacturers who outperform the others in the set without setting a threshold. 2 - The Impact Of Supply Chain Contracts On Inventory Shrinkage: Inference From Packaged Food Products Min Choi, Arizona State University, mchoi9@asu.edu Elliot Rabinovich, Timothy Richards This paper examines the effect of supply chain contracts on inventory shrinkage using a data set from a packaged bakery manufacturer in the U.S. We find that the amount of inventory shrinkage tends to be higher under scan-based (SBT) contracts compared to vendor-managed inventory (VMI) contracts when measured in terms of both explicit and non-explicit shrink. We attribute this effect to retailers’ moral hazard under SBT contracts. Our findings highlight a potential loss in efficiency in food supply chains reflected in higher inventory shrinkage under SBT contracts. Our study calls for a careful reexamination of emerging contractual forms in light of their potential impact on inventory waste. 3 - Online Grocery Retail: Revenue Models And Environmental Impact Elena Belavina, The University of Chicago, ?, chicago, IN, 6, United States, elena.belavina@chicagobooth.edu We compare the financial and environmental performance of two revenue models for the online retailing of groceries: the per-order and the subscription model. We find that subscription incentivizes smaller and more frequent orders, which reduces food waste and results in higher retailer revenues. These advantages are countered by greater delivery-related travel and expenses. Subscription leads to lower food waste-related emissions but to higher delivery- related emissions. Geographic and demographic data indicate that the subscription model is almost always environmentally preferable because lower food waste emissions dominate higher delivery emissions. 4 - Incorporating Consumer Attitudes To Minimise Waste And Out-of-stock Situations In Food Retail Emel Aktas, Senior Lecturer, Cranfield University, Cranfield, United Kingdom, emel.aktas@cranfield.ac.uk Soroosh Saghiri, Zeynep Topaloglu, Tamara van ‘t Wout, Akunna Oledinma, Zahir Irani, Amir Sharif, A. K. Samsul Huda Inventory management of perishable food products is not straightforward since the demand volatility for these products is usually high. Consumer behavior is influenced by many factors, particularly the product availability and the expiry date of the product. Product inventory is to meet the customer demand and due to short shelf life it cannot act as a buffer against demand fluctuations. We study the optimal inventory policies to minimize food waste and stock-out situations based on the expiry dates and consumer preferences. Implications for the environment follow from reduced food waste.

SB32 203A-MCC Scheduling II Contributed Session

Chair: Mauricio G. C. Resende, Amazon.com, Inc., 2483 Birch Ave N, #512, Seattle, WA, 98109, United States, resendem@amazon.com 1 - Online Lazy Bureaucrat Scheduling With A Machine Deadline Ling Gai, Shanghai University, Shanghai, 201444, China, lgai@shu.edu.cn The lazy bureaucrat scheduling problem was first introduced by Arkin et al. in 1999. Since then, a number of variants have been addressed. However, very little is known on the online version. In this note we focus on the scenario of online scheduling, in which the jobs arrive over time. The bureaucrat (machine) has a working time interval. Namely, he has a deadline by which all scheduled jobs must be completed. A decision is only based on released jobs without any information on the future. We consider two objective functions of [min-makespan] and [min-time-spent]. Both admit best possible online algorithms with competitive ratio of 1.618.

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