2016 INFORMS Annual Meeting Program

SC32

INFORMS Nashville – 2016

SC30 202B-MCC Empirical Studies in Operations Management Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session Chair: Suresh Muthulingam, The Pennsylvania State University, University Park, PA, United States, suresh@psu.edu 1 - Are Patients Patient? The Role Of Time To Appointment On Patient Flow Diwas S KC, Emory University, diwas.kc@emory.edu We examine the effect of wait to appointment on patient flow - specifically, on a patient’s decision to schedule an appointment and arrive for that session. Contrary to previously-reported findings, our results suggest that some wait can be beneficial for reducing no-shows. 2 - Product Complexity, Network Position, And Product Innovation Yingchao Lan, PhD Candidate, The Ohio State University, 2100 Neil Avenue, Fisher Hall 252C, Columbus, OH, 43210, Despite a consensus that a firm’s extended product development network plays a critical role in its innovation performance, empirical evidence linking network position, product complexity, and product innovation performance is scarce. We provide a longitudinal study employing secondary data to investigate these relationships. 3 - Managerial Attention, Reminders And The Energy Efficiency Gap Enno Siemsen, University of Wisconsin-Madison, esiemsen@wisc.edu, Suvrat Dhanokar Reminders have been shown to at the individual level increase adherence to medical prescriptions and savings goals. We demonstrate that reminders also help to increase environmental project implementation at the organizational level. Using data from a state technical assistance program, we also demonstrate the contextual effects that make reminders more effective. 4 - Does Learning From Inspections Affect Environmental Performance? - Evidence From Unconventional Oil And Gas Wells Suresh Muthulingam, The Pennsylvania State University, State College, PA, United States, suresh@psu.edu Vidya Mani Manufacturing firms increasingly face environmental inspections that determine whether their operations comply with environmental regulations. We investigate how firms learn from their own inspection experiences as well as from the experiences of other firms. We identify the characteristics of the inspection experience that enable firms to improve their environmental performance. United States, lan.63@osu.edu, John Gray, Aravind Chandrasekaran, Brett Massimino Managing Finances and Risk in Supply Chains Sponsored: Manufacturing & Service Oper Mgmt, iFORM Sponsored Session Chair: Panos Kouvelis, Washington University in St. Louis, One Brookings Drive, Box 1156, Saint Louis, MO, 63130, United States, kouvelis@wustl.edu Co-Chair: Wenhui Zhao, Associate Professor, Shanghai Jiao Tong University, 1954 Huashan Road, Shanghai, 200030, China, zhaowenhui@sjtu.edu.cn 1 - Optimal Monitoring In Collateralized Lending Dan Andrei Iancu, Stanford University, Stanford, CA, United States, daniancu@stanford.edu, Nikolaos Trichakis, Do Young Yoon Collateralized lending agreements critically rely on the lender’s ability to monitor the value of a borrower’s pledged assets, and to decide when these are sufficient to cover the outstanding loan. To further complicate matters, lenders often have to take such decisions under limited information concerning the assets’ future value. Our work focuses on the problem of choosing a monitoring and liquidation policy for a lender when a finite number of monitoring times are possible during the life of the loan. We develop a robust optimization model and provide characterizations for the optimal choices involved. SC31 202C-MCC

2 - Financial Pooling In A Supply Chain Alex Song Yang, London Business School, London, United Kingdom, sayang@london.edu, Ming Hu, Qu Qian Trade credit is common in supply contracts. We find the embedded stretch option of trade credit (i.e., buyers paying suppliers after the agreed due day) allows supply chain partners to pool their liquidity. As such, even as the supplier’s financing costs are strictly higher than the buyer’s, the buyer may still demand for trade credit. In addition, trade credit is more efficient when the supplier’s cost for collecting trade credit is low (e.g., when the retailer trusts the supplier), when the supplier’s financing cost is high when facing liquidity shocks, or when the buyer has a more diversied supplier portfolio. Finally, reverse factoring further enhances this pooling benefit. 3 - Effective Donor Fund Allocation For Health Product Procurement Iva Petrova Rashkova, Washington University in St Louis, irashkova@wustl.edu, Jeremie Gallien Motivated by Global Fund grant recipients, we study the procurement of health products subject to an uncertain funding schedule. Such schedule includes either periodic lump-sum disbursements or per-unit subsidy agreements, or both. The objective is to minimize expected health costs in the presence of random demand and lost sales inventory dynamics. We design near-optimal financing mechanisms for the allocation of donor funds, characterize their theoretical and computational performance, and discuss managerial insights. 4 - Who Should Finance The Supply Chain: Impact Of Credit Ratings on Supply Chain Decisions Wenhui Zhao, Associate Professor, Shanghai Jiao Tong University, 1954 Huashan Road, Antai College of Economics and Management, Shanghai, 200030, China, zhaowenhui@sjtu.edu.cn, Panos Kouvelis We study the impact of credit ratings on supply chain decisions. The retailer can use bank loans and/or trade credits, while the supplier can use bank loans and/or retailer’s early payment. The bank’s risk premium decreases in the borrower’s credit rating. We show if the supplier’s credit rating is above a threshold, she will offer zero interest rate trade credits and the retailer will use trade credits only. Otherwise, she will set positive rate so that the retailer uses bank loans only or combines them with trade credits. While a supplier always benefits by working with good credit rating retailers, it may not be necessarily true for the retailer, who may benefit by working with low credit rating suppliers. Chair: Sangoh Shim, Hanbat National University, Dept of Business Administration, Deokmyung-Dong, Daejeon, 305-719, Korea, Republic of, mizar0110@gmail.com 1 - Integrated Pricing And Production Scheduling Under Make-to-order Strategy Guohua Wan, Professor, Shanghai Jiao Tong University, 1954 Huashan Road, Antai College of Economics and Management, Shanghai, 200030, China, ghwan@sjtu.edu.cn, Qing Yue, Zhi-Long Chen we consider a joint pricing and production scheduling problem where the manufacturing firm produces a number of customized products from a base product. At the beginning of each period in a planning horizon, the firm sets the price of the base product as well as the prices for the customized products, and processes the accepted orders on a single production line, so as to maximize the total profit of the orders over the planning horizon. Three specific problems with different order acceptance and processing modes are studied, and computational complexity and solution algorithms are presented. 2 - Optimal Course Scheduling For United States Air Force Academy Cadets Christopher D. Richards, Colorado School of Mines, Golden, CO, United States, capt.soup@gmail.com The United States Air Force Academy spends months scheduling approximately 1,500 courses and 4,000 cadets. By building alternatives based on department preferences, we develop an integer program to generate course and cadet schedules which fulfill registration, department and institution needs. Specifically, we observe enrollment and staffing limits, military time requirements, and athletic commitments. Efficient formulation and solution methods including heuristics provide quick turnaround for an iterative process between departments and the registrar. Easily resolving scheduling conflicts ensures all cadets meet crucial commissioning deadlines. SC32 203A-MCC Scheduling III Contributed Session

79