2016 INFORMS Annual Meeting Program

SC60

INFORMS Nashville – 2016

SC58 Music Row 6- Omni Energy III Contributed Session

SC59 Cumberland 1- Omni Spatial Analysis in Transportation & Logistics Sponsored: Transportation Science & Logistics Sponsored Session Chair: EunSu Lee, Assistant Professor, New Jersey City University, 160 Harborside Plaza 2, #234H, Jersey City, NJ, 07311, United States, elee3@njcu.edu 1 - Understanding The Integration Of Freight Supply Chain By Integrating Pairwise Decision Mechanism Dapeng Zhang, Hyperloop Tech Inc., dapeng@hyperlooptech.com This paper develops an innovative econometric model to understand joint response. The first part explains the matching process in a many-to-one matching structure; The second part characterizes the joint decision making process of mutually-selected decision makers. The two parts are integrated by recognizing their dependency that is essentially a sample selection process: a joint response is only observed for matched decision makers. The proposed model is estimated using a Bayesian Markov-Chain Monte-Carlo approach. The likelihood functions and posterior distributions are derived and followed by simulation studies to test parameter recovery capability. 2 - Spatial Optimization For Designing Public Water Supply Systems EunSu Lee, New Jersey City University, elee3@njcu.edu To supply safe and clean water is critical for urban life. The objective of this study is to provide spatial and optimization approach for public water supply. The model considers existing and potential water sources to design public water supply network. This study concerns demand-supply balance and age and safety of the existing and network. SC60 Cumberland 2- Omni Facility Layout Sponsored: TSL, Facility Logistics Sponsored Session Chair: Pratik J Parikh, Wright State University, 3640 Col. Glenn Hwy, Dayton, OH, 45435, United States, pratik.parikh@wright.edu 1 - Towards Calculating Realistic Walking Paths In Warehouses: A New Approach Sabahattin Gokhan Ozden, Graduate Research Assistant, Auburn University, Shelby Center 3333, Auburn, AL, 36849, United States, gokhan@auburn.edu, Alice E. Smith, Kevin Gue We consider a visibility graph as a new way of routing order pickers in traditional and fishbone layout warehouses.. The traditional method of calculating distances is not realistic for many warehouse designs, especially those with non-traditional aisle structures. By using a visibility graph we not only consider paths that are more realistic for non-traditional layouts but can also make unbiased comparisons between traditional and non-traditional layouts for order picking operations. 2 - Retail Layouts For Maximal Exposure Pratik J. Parikh, Wright State University, 3640 Colonel Glenn Highway, 207 Russ Engineering Center, Dayton, OH, 45435-0001, United States, pratik.parikh@wright.edu, Corinne H. Mowrey Industry practice suggests that over 70% of purchase decisions are made in the store, and that store design influences shoppers’ buying decisions. Arguably one of the most important attributes of store design is product exposure; i.e., what the customer sees. We seek to optimize the design of a store section in order to maximize exposure to a traveling shopper while accounting for bi-directional traffic flow. Results from our approach suggest that layouts that combine both acute (or obtuse) and 90° rack orientations generate substantially higher exposure than traditional layouts for given floor-space and minimum rack-display constraints. 3 - A Multi-objective Intermodal Network Design Considering The Effect Of Carbon Tax In this paper, we analyze a real world coal transportation intermodal network across 15 states in US including highway, railway and inland waterway. With a motivation to minimize the economic cost and environment cost simultaneously, we propose multi-objective optimization models to analyze intermodal transportation with economic, time performance and environmental considerations. A time penalty parameter is introduced to simulate the real coal transportation behavior through the mathematical model. The breakeven point for tax rate is 13 dollars per ton, which can provide minimum carbon emission without increasing the transportation cost. Sunderesh S Heragu, Oklahoma State University, sunderesh.heragu@okstate.edu, Xiaoren Duan

Chair: Benjamin D. Leibowicz, Assistant Professor, University of Texas at Austin, 204 E. Dean Keeton St., Stop C2200, Austin, TX, 78712, United States, bleibowicz@gmail.com 1 - Modelling Electricity Balancing Market Prices And Premiums Ezgi AVCI-SURUCU, Rotterdam School of Management, Erasmus University, Rotterdam, Netherlands, avcisurucu@rsm.nl, Wolfgang Ketter, Gerhard-Wilhelm Weber In smart electricity markets, the increased penetration of renewable sources reveals the need for decision support systems. For developing reasonable bidding strategies, market participants need intelligent agents to make informed decisions about the trade-off between sales in the day-ahead market or in the balancing market. In this paper, by considering a detailed system-level data; firstly we examine the market efficiency by fractal analysis to understand the level of price predictability. Further, due the invalidity of normality and linearity assumptions, we propose non-parametric non-linear models to provide strategic tools for policy makers and market participants. 2 - A Game Theoretic Approach For Load-shifting In The Smart Grid With Storage Capacity Murat Erkoc, Associate Professor, University of Miami, 1251 Memorial Drive, Eng. Building. Room 282, Coral Gables, FL, 33146, United States, merkoc@miami.edu, Eeyad Al-Ahmadi We study the load-shifting problem within the context of smartgrid demand response for an electricity market composed of a single energy provider and multiple consumers. We consider the case where the energy provider has the option of installing and managing client storage devices at consumer sites. The provider acts as the leader and decides on price discounts and storage decisions across a finite time horizon. The consumers, acting as followers, respond by deciding if and how they shift their consumption from their nominal demand. We investigate the joint impact of price discounts and storage option on player incentives and peak-to-average ratios. 3 - Essential Aspects Of Power System Resource Planning In Developing Community Of Microgrid Aida Khayatian, PhD Student, University of Houston, 4722 Calhoun Rd, E206 Engineering Bldg 2, Houston, TX, 77204, United States, akhayatian@uh.edu, Masoud Barati, Gino J Lim This paper addresses Microgrid expansion planning problem which helps Community Microgrid companies to decide whether or not they invest on Microgrid installation in a competitive electricity market. Integrated resource planning, demand-side management, environmental issues, the competitiveness of power investors, energy efficiency, rural electrification, future load growth and possible power outage in the face of uncertainty and reliability are challenges faced by power system planners. This paper develops a model and policy for Microgrid expansion planning in a competitive electricity market under uncertainty by considering these challenges. 4 - Technology-push, Demand-pull, And Strategic R&D Investment Benjamin D. Leibowicz, Assistant Professor, University of Texas at Austin, 204 E. Dean Keeton St., Stop C2200, Austin, TX, 78712, United States, bleibowicz@gmail.com A bilevel modeling framework is constructed to determine the optimal combination of technology-push and demand-pull interventions for a given technology policy application. The inner agents are profit-maximizing firms who solve a two-stage stochastic decision problem with product and process R&D investments. The outer agent is a welfare-maximizing policymaker. Findings illustrate how the optimal technology policy combination varies with the primary motivation for innovating and the relative strengths of three important market failures (incomplete appropriability of R&D, a negative production externality, and imperfect competition).

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