Informs Annual Meeting 2017

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INFORMS Houston – 2017

3 - Integrated Timetable Development and Fleet Assignment Model Incorporating Passenger Choice

decisions on military systems. Application of this effort is utilized to provide repeatable, defendable results informing budget decisions over a 30 year, $3 trillion resource allocation plan.

Vikrant Vaze, Dartmouth College, 14 Engineering Drive, Murdough Center, Hanover, NH, 03755, United States, vikrant.s.vaze@dartmouth.edu, Keji Wei, Alex Jacquillat

We present a mixed-integer linear programming model for integrated timetable development and fleet assignment, where the passenger itinerary flows are modeled using a multinomial logit model. Even for small to moderate network sizes, this is a very challenging problem to solve and has never been addressed in prior literature. We develop multiple exact and heuristic solution approaches and test their performance against the performance of a state-of-the-art off-the-shelf commercial solver. Our computational results using real-world airline networks provide several new insights into the structure of highly profitable airline timetables. 4 - Multi-stage Airline Scheduling Problem with Stochastic Passenger Demand and Non-cruise Times Ozge Safak, Bilkent University, Department of Industrial Engineering, Ankara, 06800, Turkey, ozge.safak@bilkent.edu.tr, Ozlem Cavus, Selim Akturk We introduce an airline scheduling problem that determines flight timing, fleeting and routing decisions while considering the randomness of demand and non- cruise times. We assign aircraft by considering not only flight timing and demand but also fuel and emission costs associated with cruise speed adjustments. We propose a mixed-integer multi-stage stochastic programming model with nonlinear fuel cost function, where the nonlinearity is handled by MISOCP. We employ a scenario group-wise decomposition algorithm to obtain lower and upper bounds for the optimal value of the proposed model. We suggest a cutting plane algorithm for solving group subproblems. Supported by TUBITAK [Grant 116M542]. 351D Internally- and Coalition-focused Military Applications Sponsored: Military Applications Sponsored Session Chair: Brian J Lunday, Air Force Institute of Technology, Air Force Institute of Technology, WPAFB, OH, 45433, United States, brian.lunday@afit.edu 1 - On Truthful, Stable and Proportionate International Alliance Burden Sharing William Caballero, Air Force Institute of Technology, WPAFB, OH, 45433, United States, William.Caballero@afit.edu, Brian J. Lunday, Darryl K. Ahner We propose cost sharing mechanisms for an international alliance such that burden shares are allocated based on declarations of the alliance’s worth, probabilistic inspection efforts, and deception penalties. We develop a set of multiobjective nonlinear optimization problem formulations that are budget balanced, proportional and in the core. Any feasible solution to these problems corresponds to a single-stage Bayesian stochastic game wherein a collectively honest declaration corresponds to varying forms of Nash Equilibria, but the optimal solution considers the alliance’s central authority preferences between inspection and penalization. 2 - Automating Mission Essential Task List Crosswalks with Data Science A Mission Essential Task List (METL) crosswalk is a unit’s primary analysis tool to plan training; however, it is often improperly executed. We contend improper execution is not a function of training, but rather an unreasonable expectation to solve a difficult problem by hand. By modeling task relationships as a network, we are able to automated the crosswalk and provide descriptive measures of the payoff and complexity associated with tasks included in a Unit Task List (UTL). These measures can then be used to assist commanders with selecting and prioritizing tasks when developing a Unit Training Plan (UTP). We demonstrate the effectiveness of our method by applying it to an infantry company. 3 - Air Force Comprehensive Core Capability RiskAssessment Framework (C3RAF) Charles Glaze, Headquarters US.Air Force Pentagon, Washington, DC, charles.b.glaze.mil@mail.mil, Shane N. Hall, John R. Lepird, Robert Henson, Donald Allen This paper examines risk within the United States Air Force (AF) by modeling the AF as a network of core capabilities. This model provides a better understanding of what factors drive risk across the AF and its overall contribution to the United States’ ability to win wars. This decision framework provides key insights on strategic investment decisions by linking core capability risk with budgeting TA34 Dan Koban, United States Military Academy, donald.koban@usma.edu, Michael S. Scioletti

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351E Supply Chain Management Contributed Session Chair: Naser Nikandish, California State University-Fullerton, Fullerton, CA, United States, n.nikandish@gmail.com 1 - Value of Information-sharing in a Supply Chain under a Revenue-sharing Contract Tal Avinadav, Bar-Ilan University, Webb 1, Ramat-Gan, Israel, tal.avinadav@biu.ac.il, Tatyana Chernonog, Yael Perlman We investigate the value of vertical information-sharing in a supply chain whose members interact via a revenue-sharing contract. Demand is uncertain, and both the manufacturer and the retailer receive signals about the demand, which are correlated. We analyze the value of information-sharing in this supply chain under the assumption of truth telling. We show that (i) to obtain equilibrium, the leader has to disclose the signal he received or his lack of information; (ii) the leader does not derive any benefit from the information that has been signaled to him, or from knowing what has been signaled to the follower; (iii) the leader does benefit when the follower has knowledge of both signals. 2 - Supply Chain Integration, Advanced Manufacturing Technology, and Operational Performance Birasnav Muthuraj, New York Institute of Technology, Northern Boulevard, Old Westbury, NY, 11568, United States, bmuthura@nyit.edu, Disha Nair This study examines the relationship between supply chain integration, implementation of advanced manufacturing technology, and operational performance. Data were collected from Indian manufacturing industries to understand the relationships among the studying variables. 3 - The Influence of Network Resources and Absorptive Capacity on Productive Efficiency Hung-Chung Su, University of Michigan-Dearborn, Dearborn, MI, 48126, United States, hcsu@umich.edu, Ta-Wei Kao This study considers the relationships between network resources, exploitative absorptive capacity, and a firm’s productive efficiency. This research examines the effects of network positions that relate to three types of informational resources obtained from the network: information volume, information velocity, and information diversity on a firm’s productive efficiency. Furthermore, we examine the moderating role of absorptive capacity on the relationship between network resources and productive efficiency. 4 - Evaluation of End-to-end Strategies with Omnichannel Retailing: A Model and Application for Apparel Supply Chains Shardul Phadnis, Malaysia Institute for Supply Chain Innovation, 2A, Persiaran Tebar Layar, Seksyen U8, Shah Alam, 40150, Malaysia, sphadnis@misi.edu.my We advance an extant model of end-to-end supply chain to omnichannel retailing to evaluate sourcing and sales strategies as components of one supply chain strategy. We develop demand models for two omnichannel settings—Buy-Online- Pickup-in-Store, and Try-in-Store-Buy-Online. We develop conditions for optimal inventory placement, and evaluate four end-to-end strategies, combinations of two omnichannel settings with offshore and nearshore sourcing to describe the conditions in which each strategy outperforms the others. We test the model using a computer simulation and describe how the optimum end-to-end strategies of omnichannel merchants differ from those of single channel merchants. 5 - Occurrence of Bullwhip Effect in Pricing in the Case of a Revenue-sharing Contract Ertunga Ozelkan, University of North Carolina-Charlotte, 9201 University City Boulevard, Charlotte, NC, 28223, United States, ecozelka@uncc.edu, Ziaul Haq Adnan Bullwhip effect in pricing (BP) refers to the amplified variation in pricing. We analyze the occurrence of BP in the case of a revenue-sharing contract with both the deterministic and the stochastic demand. We model the deterministic case as a Stackelberg game, and the stochastic model as a Newsvendor problem with both an additive and a multiplicative uncertainty in demand. The results show that the ratio of the standard deviations of the retail and the wholesale prices (i.e. BP ratio) is inversely proportional to the retailer’s profit share. We also discuss the cost-pass-through rates in the case of a revenue-sharing contract with a stochastic demand under a linear and an isoelastic demand form.

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