2016 INFORMS Annual Meeting Program

SC55

INFORMS Nashville – 2016

SC53 Music Row 1- Omni Advances in Research Exploring the Link between Learning and Innovation Sponsored: Technology, Innovation Management & Entrepreneurship Sponsored Session Chair: Onesun Steve Yoo, University College London, One Canada Square, London, E14 5AB, United Kingdom, o.yoo@ucl.ac.uk 1 - Design Of Resource Competitions For R&D Projects Pascale Crama, Singapore Management University, pcrama@smu.edu.sg Academic research is funded by governments as well as by university administered research funds (UARF) at research universities. Government funding is based on arm’s length, competitive peer reviews of project proposals, whereas UARF funding is more relationship-based. We evaluate the impact of these two funding sources and their differing funding rules on the novelty of the projects being funded and social welfare creation. Our research points to the importance of an appropriate design of the two-stage funding system to increase social welfare. 2 - Staged Ideation In Crowdsourced Problem Solving Nilam Kaushik, University College London, uceikau@ucl.ac.uk Crowdsourcing ideation platforms are increasingly gaining traction and are being used by firms to tap into the wisdom of crowds to generate ideas and to solve problems. Some such platforms are based on a multi-staged ideation paradigm where ideas are elicited from the user community for an open problem. A few ideas are selected for further refinement which involves updating the idea based on feedback from the user community. Refined ideas are subsequently evaluated and a subset is chosen for winning. Using a novel dataset from a crowdsourcing innovation platform, we investigate factors that affect the selection of an idea into the refinement stage and further into the winning stage. 3 - Research And Development Competition With Spillovers And Uncertain Completion Times Wenxin Xu, University of Illinois at Urbana-Champaign, wxu9@illinois.edu Dharma Kwon, Jovan Grahovac We examine a game-theoretic model of two firms that are competitively engaged in R&D projects and address two questions: (1) What is the impact of natural spillover upon innovative firms’ payoffs? (2) Does an innovative firm have an incentive to unilaterally increase the spillover to its competitor? To answer these questions, we investigate the impact of natural spillover on R&D investment strategies when the R&D completion times are uncertain and either firm can receive spillover from the other. We characterize the Nash equilibrium of the model and find that natural spillover may or may not diminish the profit of the more efficient firm. 4 - A Theoretical Analysis Of The Lean Startup’s Agile Product Development Process Onesun Steve Yoo, University College London, onesun.yoo@ucl.ac.uk, Tingliang Huang, Kenan Arifoglu We provide a theoretical foundation for the lean startup’s agile product development process. It helps us better understand why lean start-up works, and also predict when it does not work. We discuss the implications of our results to research and practice. SC54 Music Row 2- Omni Mathematical Modeling and Data Analytics in the Service Industry Sponsored: Service Science Sponsored Session Chair: Mohammadsadegh Mobin, Western New England University, 1215, Wilbraham road, WNE university, Springfeild, MA, 01119, United States, mm337076@wne.edu Co-Chair: Zhaojun Li, Western New England University, 1215, Wilbraham Road, WNE University, Springfield, MA, 01119, United States, zhaojun.li@wne.edu 1 - Analyzing The Predictive Power Of Early Warning Systems In Healthcare Nasibeh Azadeh-Fard, Visiting Professor, Rochester Institute of Technology, Industrial and Systems Engineering Department, Rochester, NY, 14623, United States, azadehfard@gmail.com, Navid Ghaffarzadegan, Jaime Camelio

Early warning systems have been widely used in healthcare to predict adverse outcome. The prediction power of early warning systems, however, is an empirical question. The objective of this study is to assess the predictive power of early warning systems and prognostic risk indicators in predicting different outcomes in health such as mortality, disease diagnosis, adverse outcomes, care intensity, and survival. 2 - Reverse Bullwhip Effect In Pricing In Retail Industry Ziaul Haq Adnan, University of North Carolina at Charlotte, Charlotte, NC, United States, zadnan@uncc.edu Ertunga Ozelkan Bullwhip effect in pricing refers to the amplified variability of prices. If the variability is amplified towards downstream (upstream), we refer to it as reverse (forward) bullwhip effect in pricing. In this paper, we consider both simultaneous and sequential (e.g. wholesale and retail leading) game structures. We show analytical results and parametric examples for concave, linear, and convex demand functions. We conclude that forward bullwhip effect in pricing occurs for all concave and linear demand functions, and reverse bullwhip effect in pricing occurs for some convex demand function. The rate of amplification of variability in prices varies for different game structure. 3 - A Simulation Approach To Plan DesignV&V Activities For The New Product Reliability Improvement Mohammad Sadegh Mobin, Western New England University, Product failure modes, their effects, and a set of verification and validation (V&V) activities are outputs of conducting the design failure modes and effect analysis (DFMEA) in the early stages of developing a new product. A robust method for planning V&V activities is needed to mitigate all critical design failure modes by considering cost and timeframe constraints. In this paper, an integrated simulation-DEA (Data Envelopment Analysis) model is proposed to provide the efficient product design V&V activities’ plans by considering the uncertainty of V&V process parameters. 4 - Design Of Coordinating Contracts In Volume Discount Group Purchasing Abdollah Mohammadi, University of North Carolina - Charlotte, 532 Lex Dr., Charlotte, NC, 28262, United States, amoham17@uncc.edu, Ertunga Ozelkan This study investigates supply chain coordination using contracts in the context of group purchasing (GP), where there is a supplier, a GP agent and multiple customers. In GP the underlying contract between a supplier and the GP agent is quantity discount, while between the agent and the customers it can be a different type of contract. In this study, we specifically investigate revenue sharing or buyback contracts and discuss how and when they coordinate and align objectives of all members of the supply chain. SC55 Music Row 3- Omni Emerging Topics in Service Operations Sponsored: Service Science Sponsored Session Chair: Mike Pinedo, NYU, NYU, NYC, NY, 10012, United States, mpinedo@stern.nyu.edu Co-Chair: Yuqian Xu, NYU, NYU Stern School of Business, NYC, NY, 10012, United States, yxu@stern.nyu.edu 1 - Vertical Opaque Selling Under Demand Uncertainty Rachel Chen, UC Davis, rachen@ucdavis.edu This paper studies opaque selling with vertically differentiated products when demand is uncertain. The quality of the product a consumer receives depends on the realization of the random demand. We show that it is more profitable to offer an opaque product of the vertically differentiated products than to offer a transparent product line. 2 - When Prospect Theory Meets Consumer Choice Models Ruxian Wang, Johns Hopkins Carey Business School, Baltimore, MD, 21202, United States, ruxian.wang@jhu.edu According to prospect theory, when the price is higher or lower than a reference point, customers perceive a utility loss or gain. We incorporate the extra utility changes into popular choice models. An empirical study shows that the new choice models can better characterize customer choice behavior. 1215 Wilbraham Road, Springfield, MA, 01119, United States, mm337076@wne.edu”, Zhaojun Li, Mohammad Dehghanimohammadabadi

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