Informs Annual Meeting 2017

SA33

INFORMS Houston – 2017

SA35

2 - Optimization of Parcel Delivery with a Truck and Drones Combination

351E Supply Chain Management Contributed Session Chair: Francisco Brahm, University of Cambridge, Trumpington 10, Cambridge, CB2 1AG, United Kingdom, fb435@cam.ac.uk 1 - Assessing Inventory Performance via Warehouse Structural Embeddedness Kedong Chen, University of Minnesota, Minneapolis, MN, United States, chen3548@umn.edu, Hung-Chung Su, Kevin W. Linderman How a business entity is embedded in its network of the same others will affect its operational performance. Such an effect of structural embeddedness becomes further salient when supply and warehouse networks become increasingly complex due to business expansion. Through analyzing proprietary datasets from China’s leading logistics management company, we identify the duality of the effect of a warehouse’s structural embeddedness on its inventory performance. Specifically, a distribution center (DC)’s direct ties are negatively associated with the DC’s inventory turnover and stockout rate, while the association becomes positive for the DC’s indirect ties in its tier-1 ego network. 2 - A Dynamic Agent-based Model of Inter-firm Strategic Interaction Duncan Robertson, Loughborough University, SBE, Loughborough, United Kingdom, d.a.robertson@lboro.ac.uk We present a dynamic model of inter-firm strategic interaction where firms compete for customers within an competitive market. We develop an agent-based model where firms move in a strategic space in order to capture customers. The competitive landscape faced by a firm changes not only as the result of firm-firm interactions but also from the indirect interaction between firms and customers. We present results for different strategies and show when they should be used. 3 - A Contingency Framework for Disparate Tradeoffs in Manufacturing Strategy on a Duality Time Perspective Zongjian Chen, Associate Professor, Huazhong University Of Science & Technology, Luoyu Road 1037, Wuhan, 430074, China, chenzjem@mail.hust.edu.cn I introduce a contingency framework that relates digitization of manufacturing to the definitions of the performance frontier concept of a manufacturing unit, paying particular attention to the question of how to mix competitive priorities and competitive capabilities in manufacturing strategy. On a duality time perspective, this study investigates the assumptions, rationales and methodologies of the framework for disparate strategic tradeoffs. 4 - Acquisitions as Second Order Dynamic Capability: Understanding Indirect Contextual Impact Vivek Peeraji Jirnal, PhD Student, XLRI, Room No 26 B.Block, GMP, XLRI, C. H. Area, Jamshedpur, 831001, India, jirnalvivek@gmail.com We utilize the recent contributions in dynamic capability literature to identify acquisition learning as a second order dynamic capability. We build a model to understand the indirect impact that acquisition capability in its different forms (weak and strong) can cause, based on a) firms absorptive capacity, b) firms combinative capability, and c) the level of environmental dynamism. Our study goes beyond previous acquisition literature by designing comprehensive parameters to capture contextual multidimensionality and its contribution in impact variance of acquisitions, captured through six different forms of impact of acquisition capability. 5 - The Evolution of Productive Organizations Francisco Brahm, University of Cambridge, Trumpington 10, Cambridge, CB2 1AG, United Kingdom, fb435@cam.ac.uk, Joaquin Poblete We develop a evolutionary game-theory model to study the origins of partnerships, guilds, cooperatives, and other knowledge-based organizations. On every period, a population of agents adopts a technology that confers fitness but can be affected by environmental changes. These agents might display individual or social learning. We show that social learning does not enhance the fitness of the population. Then, we show that by organizing a portion of the population into a small group that has a lower cost of social learning the fitness of the population increases. The model provides several propositions regarding organization size, adaptation to uncertainty, who innovates, and the role of secrecy.

Alice E. Smith, Auburn University, 3301 Shelby Center, Dept of Industrial/Sys Engineering, Auburn, AL, 36849, United States, smithae@auburn.edu, Mehmet Gulsen, Chase Murray The use of drones in parcel delivery has the potential to lower delivery cost and shorten delivery times. Deploying multiple drones in parcel delivery will further speed-up the process, but this brings new challenges in terms of synchronizing the schedules of the drones and the truck. This research presents an operational framework of a multiple drone - truck integrated delivery system. Realistic technical constraints for the drones such as payload capacity and endurance limit are taken into consideration. With the objective of minimizing total delivery time, the routes for each drone and the truck are determined using an integrated optimization approach. 3 - Delivery with Trucks and Drones James F. Campbell, University of Missouri-St Louis, College of Bus. Administration, One University Boulevard, Saint Louis, MO, 63121-4499, United States, campbell@umsl.edu Delivery drones (unmanned vehicles) provide a new opportunity for delivery of small packages. The presentation considers continuous approximation models for three delivery options from a depot: single-stop drone trips, multi-stop truck tours, and multi-stop hybrid truck-drone tours where drones are launched from and return to trucks. Different tour time limits allow high service levels to be modeled and fixed costs for depots allow deign of multi-depot delivery systems with drones. 351C Aviation Applications Section: Awards Finalists Sponsored: Aviation Applications Sponsored Session Chair: Virginie Lurkin, Ecole Polytechnique Fédérale de Lausanne, Route Cantonale, Lausanne, 1015, Switzerland, vlurkin@ulg.ac.be Co-Chair: Vikrant Vaze, Dartmouth College, 14 Engineering Drive, Murdough Center, Hanover, NH, 03755, United States, vikrant.s.vaze@dartmouth.edu 1 - Modeling Crew Itineraries and Delays in the National Air Transportation System Keji Wei, Dartmouth College, Hanover, NH, United States, keiji.wei.th@dartmouth.edu, Vikrant Naze We propose, optimize and validate a methodological framework for estimating the extent of the crew-propagated delays and disruptions (CPDD). We identify the factors that influence the extent of the CPDD, and incorporate them into a robust crew scheduling model. We develop a fast heuristic approach for solving the inverse of this robust crew scheduling problem to generate crew schedules that are similar to real-world crew scheduling samples. We develop a sequence of exact and heuristic techniques to quickly solve the forward problem within a small optimality gap for network sizes that are among the largest in robust crew scheduling literature. Computational results using four large real-world airline networks demonstrate that the crew schedules produced by our approach generate propagation patterns similar to those observed in the real world. Extensive out-of-sample validation tests indicate that the parameters calibrated for one network perform reasonably well for other networks. We provide new insights into the perceived tradeoff between planned costs and delays costs as reflected by actual airline crew schedules. Finally, we present a general approach to estimate the CPDD for any given network using our methodological framework under a variety of data availability scenarios. 2 - Service Improvement and Cost Reduction for Airlines: Optimal Policiesfor Managing Arrival and Departure Operations under Uncertainty Heng Chen, University of Nebraska-Lincoln, CBA 250, 1240 R.Street, Lincoln, NE, 68588, United States, heng@unl.edu We study four novel operational problems related to flight arrivals and departures at airports under the uncertainty of operating conditions, and demonstrate the potential dollar-based value that can be generated through stochastic models within the context of airline and airport operations. We derive both tactical and strategic policies to improve efficiency and sustainability for airlines and the society, which can enhance service quality and strengthen market position for the airlines involved. SA33

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