Informs Annual Meeting 2017

SD10

INFORMS Houston – 2017

4 - Mixed-Integer Linear Programming Applications in Public Policy Matt Olfat, PhD Student, UC Berkeley IEOR, Berkeley, CA, 94702, United States, molfat@berkeley.edu We present two applications of integer programming in policy. The first showcases the power of integer programming in capturing the nuances of individual behavior, allowing policymakers more accurate insights in the potential responses of constituent populations to their policies. In the second, we target fairness constraints in classification algorithms. In particular, we seek to handle FTC regulations on equitable lending. We propose a new discrete SVM framework to maintain this additional restriction. Further, we provide a duality argument to ensure that non-predictability is maintained at any level of thresholding. 330A Frontiers in Supply Chain Management Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session Chair: Sang Kim, Yale University, 165 Whitney Ave, New Haven, CT, 06520, United States, sang.kim@yale.edu 1 - Supply Chain Design for Substitutable Digital and Physical Information Goods Zhenhuan Lei, PhD Student, Duke University, 100 Fuqua Drive, Mailbox #300, Durham, NC, 27708, United States, zhenhuan.lei@duke.edu, Robert Swinney We consider a firm selling two partially substitutable goods, one digital and one physical, e.g., a downloadable and DVD version of the same movie. The physical good is characterized by non-zero marginal production cost, positive production leadtime, and, potentially, a mismatch between supply and demand. The digital good is characterized by zero marginal cost and no inventory constraints. We consider how market and product characteristics drive the firm to price each product, determine inventory, choose a selling strategy involving one or both goods, and design its supply chain. 2 - Grocery Access and Food Waste Elena Belavina, University of Chicago Booth School of Business, 5807 S.Woodlawn Ave, Chicago, IL, 60637, United States, elena.belavina@chicagobooth.edu This paper studies how access to grocery stores influences food waste. Our investigation reveals that store density in most American cities is well-below optimal level, and modest increases in store density substantially reduce waste; e.g. in Chicago, just 3-4 more stores (per 10 sq-km) can lead to a 6-9% waste reduction, and a 1-4% decrease in grocery expenses. These results arise from the principal role of consumer waste, suggesting that activists and policy makers’ focus on retail waste may be misguided. Store operators, urban planners and decision makers should aim to increase store densities to make grocery shopping more affordable and sustainable. 3 - Social Learning and the Design of New Experience Goods Yiangos Papanastasiou, University of California, Berkeley, Berkeley, CA, United States, yiangos@berkeley.edu, Pnina Feldman, Ella Segev This work focuses on the implications of social learning from product reviews for a monopolist firm’s choice of product design. Our main finding is that, in the presence of social learning, the firm’s design choice results in a product whose expected quality is lower either in the absolute sense, or relative to the product’s price. 4 - Competing to Discover Compliance Violations: Self-inspections and Enforcement Policies In this study we consider dynamic interactions between a regulator and a firm who perform competitive inspections of a production facility that undergoes random compliance violations. Upon detecting noncompliance, the regulator orders the firm to restore compliance via either temporary fix or permanent fix. On the other hand, if the firm detects noncompliance, he restores compliance privately via temporary fix, preempting the regulator’s detection. The incentive conflict that arises from these interactions gives rise to equilibrium outcomes that shed light on strengths and weaknesses of different enforcement policies that the regulator can employ. SD09 Sang-Hyun Kim, Yale University, 165 Whitney Ave, PO Box 208200, New Haven, CT, 06520, United States, sang.kim@yale.edu, Saed Alizamir

5 - Analysis of Critical Success Factors for Sustainable Supply Chain Management in the Indian Steel Sector: An Application of Structural Equation Modelling Kunal Gaurav, Indian Institute of Technology Kharagpur, Kharagpur, India, kg.kunalgaurav@gmail.com, Rudra P. Pradhan Organizational sustainability performance is highly dependent on organization’s culture and work practices including sustainable supply chain management. External pressures influence organizational practices and this also reflects on the sustainability performance indicators. This study presents an analysis of their inter-relationships in the context of Indian steel sector. The twenty one measures representing dimensions of external pressure, organizational internal practices and sustainability performance were developed based on literature survey and inputs from industry experts. A conceptual model has been proposed which has been empirically tested by survey data collected from 145 industry practitioners through online and offline survey. Using structural equation modelling technique, the study establishes that organizational practices positively impact the sustainability performance in the context of Indian steel sector. 330B Responsible Research in Business and Management Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session Chair: Serguei Netessine, University of Pennsylvania, Wharton School, Philadelphia, PA, 138676, United States, netessin@wharton.upenn.edu Co-Chair: Christopher S. Tang, University of California-Los Angeles, Los Angeles, CA, 90095-1481, United States, chris.tang@anderson.ucla.edu 1 - Socially and Environmentally Responsible Value Chain Innovations: New Operations Management Research Opportunities Christopher S.Tang, University of California-Los Angeles, UCLA Anderson School of Management, Operations and Technology Management, Los Angeles, CA, 90095-1481, United States, chris.tang@anderson.ucla.edu I will discuss opportunities in Responsible Research that emerge from the subject of socially and environmentally responsible value chains. I will talk about topics that are likely to become important going forward. 2 - Responsible Research in Business and Management Serguei Netessine, University of Pennsylvanuia, Philadelphia, PA, United States, netessin@wharton.upenn.edu I will report on the new initiative led by 24 faculties across disciplines on Responsible Research in Business and Management (RRBM), which culminated in a white paper “A Vision of Responsible Research in Business and Management: Striving for credible and useful knowledge”. 3 - What do we Mean by Responsible Research in Operations Management? Luk Van Wassenhove, INSEAD, Fontainebleau, France, luk.van-wassenhove@insead.edu Operations management is a problem-driven applied discipline rooted in the realities of business. Within that context, Responsible can mean many things. First, who decides and are all stakeholders taken into account? Second, what about being Responsible for the correctness of our recommendations? Third, should we strongly involve decision makers in problem description, and validating results? Very few studies support their findings with high-quality empirical evidence. Fourth, Responsible could mean we should study large societal problems to justify the cost of our research to society. I propose a few thoughts from my personal experience. SD10

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