Informs Annual Meeting 2017

MC37

INFORMS Houston – 2017

3 - Risk Implications in Cybersecurity Applications Natalie M.Scala, Towson University, Dept. of e-Business and Technology Management, 8000 York Road, Towson, MD, 21252, United States, nscala@towson.edu, Michel Cukier, Allison C. Reilly, Paul L.Goethals This research addresses risk in cyber defense and identifies opportunities to incorporate risk modeling and decision analysis into current initiatives. Specifically, the Science of Security Five Hard Problems approach frames cybersecurity from a computer science perspective. We identify the problems/attributes that are collectively exhaustive from a risk perspective as well as the overlap with the hard problems framework. Finally, we discuss approaches to take to address risk, including predictive analytics, value modeling, and developing metrics to score performance and measure risk.

5 - Consignment Contract with Revenue Sharing in Online Retailing under Strategic Information Sharing Tatyana Chernonog, Bar-Ilan University, Ramat Gan, Israel. Tatyana.Chernonog@biu.ac.il This work suggests a general model of a two-echelon supply chain where a dominant retailer and a manufacturer interact via a consignment contract with revenue sharing. The manufacturer’s cost function is known only to him, whereas the retailer has to evaluate this function. We formulate the problem as a Retailer- Stackelberg game in which the less-informed party moves first. We investigate a strategic information-sharing policy of the manufacturer when the revenue and cost functions are general as well as the set of his decisions. 351F Socially Responsible Operations Sponsored: Service Science Sponsored Session Chair: Muge Yayla Kullu, University of Central Florida, Orlando, FL, 32816, United States, muge@ucf.edu 1 - Examining the Impact of Employees with Disabilities on Productivity Sriram Narayanan, Michigan State University, 632 Bogue Street, Room N357 North Business College Complex, East Lansing, MI, 48824, United States, narayanan@broad.msu.edu, Tharo Soun, Kalyanmoy Deb In this study, we examine the role of team diversity on employee productivity using real-life time study data. In particular, we examine how diversity of different forms of disability in a garment manufacturing unit. 2 - Diversities in Supply Chain Network an Empirical Study on Supply Chain Governance Strategies in Reducing Carbon Emissions Baiyang ‘Herbie’ Huang, Kenan-Flagler Business School, 123B S. Roberson St, None, chapel hill, NC, 27516, United States, herbie_huang@kenan-flagler.unc.edu, Jayashankar M.Swaminathan, Sriram Narayanan Suppliers are an important aspect of firms in reducing greenhouse gas emissions. Firms use multiple strategies to facilitate this reduction. We empirically examine this question using a novel secondary dataset of 1400 global companies’ supply chain carbon emissions mitigation strategies with their supply base. We theorize and empirically test the impact of supplier base diversity in both industry and geographic locations, supply chain’s network properties and regulatory environment on the strategies they pursued. 3 - Collaboration Among Supply Chain Partners: Better Outcomes or More Conflict? Muge Yayla Kullu, University of Central Florida, 4000 Central Florida Blvd., Orlando, FL, 32816, United States, muge@ucf.edu In this paper, we are interested to find out how acceptable or fragile collaborative sourcing partnership models would be under various supply chain configurations. We account for the heterogeneity of the customer base and differentiation of the products in the market which has not been done before in this context. Our findings indicate that if the end products have independent demand structures, all parties benefit from the end results. However, when there is a quality differentiated product structure with heterogeneous customer base, collaborative sourcing would be lethal for the national brand manufacturer. MC36

MC35

351E Supply Chain Management Contributed Session

Chair: Xingxing Chen, Washington University-St. Louis, Saint Louis, MO, United States, xingxing.chen@wustl.edu 1 - Customer Order Value Evaluation Model for Customer Classification in Multi-class Production Systems

Hyun-jung Kim, Professor, Seoul School of Integrated Sciences & Technologies, Seoul, Korea, Republic of, charitas@empal.com, Eungab Kim We consider a manufacturer that produces make-to-order products in retail industry. While inventory rationing has extensively been covered in the literature, how to classify customer orders practically has not been studied yet. We develop a sophisticated modeling scheme that quantifies the value of customer orders. This model is based on statistical and machine learning algorithms. Using data collected from financial statements of retail companies in Korea, we show that our model can be very effective in customer classification for multi-class production systems in practice. 2 - Developing a Continuous Location Routing Model and Solving it by using Benders Decomposition Ali Sarabi, Arizona State University,Tempe, AZ 85287, United States, asarabi1@asu.edu One of the most important measures, in order to reduce the costs of logistic and distribution, is to integrate the location of distribution centers and the routing paths of the goods. In this study, we try to develop a model for the decision- making in a continuous situation. The proposed model is actually a model to determine the locations of the facilities and routing in order to deliver products to the customers in a bi-level distributed system. Although the proposed approach and locating in the continues space may be associated with complications, the time and money spent to collect the information about the potential locations for solving the problem will be reduced. 3 - Cooperative Supply Chain Coordination using Sustainability- focused Joint Economic Lot-sizing Kurt A.Masten, Assistant Professor of Supply Chain Management, Fairleigh Dickinson University, 285 Madison Ave., Unit E, Madison, NJ, 07940, United States, masten@fdu.edu Considerable efforts have been spent on how to best define and explain “sustainability” from multiple perspectives. Most research in the area concludes that significant savings should be possible with proper application of sustainability principles. However, little attention has been given to the practical logistics and methods required to help shift the discussion from “what” to “how”. An updated cooperative solution based on an established joint economic lot-sizing model is proposed to offer a quantitative aid to practitioners and researchers. 4 - Project-based Supply Chain: Role of Operational Hedging Xingxing Chen, Washington University-St. Louis, Campus Box 1156, One Brookings Drive, Saint Louis, MO, 63130, United States, xingxing.chen@wustl.edu, Panos Kouvelis, Yu Xia We analyze a two stage supply chain where a Manufacturer sources a key component from suppliers in order to complete a project. The consumption level of the component can’t be perfectly predicted due to various reason. Therefore, planning for the component inventory can be critical. We formulates a newsvendor model which includes a linear penalty when delay materializes. We find that 1) optimal operational hedges is contingent on time buffer in an integrated supply chain 2) under a decentralized supply chain, optimal operational hedges occur at different level of the supply chain and may vary with time buffers; 3) supply chain coordination can be achieved.

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352B Applications in Supply Chain Management Sponsored: Service Science Sponsored Session Chair: Sara Saberi, Worcester Polytechnic Institute (WPI), Worcester, MA, 01609, United States, ssaberi@wpi.edu 1 - Regulation Compliance in the Multilevel Supply Chain

KiHyung Kim, Purdue University, School of Industrial Engineering, 315 N.Grant Street, West Lafayette, IN, 47907-2023, United States, kim1151@purdue.edu As the supply chain is more globalized, imposing regulation along the supply chain is an issue. In our model, there are three participants in the supply chain, the brand owner, the manufacturer, and the supplier. The supplier is located overseas, and it is a critical issue for the brand owner to let participants comply the domestic regulation. We study three cases: the stick only case, the carrot only case, and the stick and carrot case. Equilibrium is investigated, and our analysis indicates that the stick and carrot strategy can prevent collusion and let participants comply the regulation.

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